Reasons to opt for exclusive mandates
How to choose a consulting company for an exclusive mandate
Contract formation and details
Reasons to opt for exclusive mandates –
An exclusive mandate is a written direction to a consulting company to have the exclusive right to sell a client or developers property on their behalf for a set length of time, which can range from three months to two years.
There are multiple benefits of signing exclusive mandates, a few of them are as follows:
Having a single point of contact: One of the major benefits of granting an exclusive mandate is having only one company to deal with. This means that you won’t need to open up your property to multiple companies, and you will place your trust in a single professional consulting company. This enables higher security and decreases potential damage to your property, multiple interactions, and COVID risks.
Only qualified buyers have access to your property which makes the whole procedure more optimal and well-structured which helps in developing a relationship of trust and accountability between you and the company.
Maximum sale/spread rate: Sellers often think that employing more companies means more property sales, but that isn’t the case. There are always a set number of buyers looking to buy a property, with their requirements already set.
Therefore, instead of employing multiple agents focus on employing one agency that is visible enough to attract that set number of buyers, and that they have the ability to close the deal to get your property sold.
Getting the best price quote: The consultant you choose should be able to create competition amongst prospective buyers to get you the best possible price quote. Since, the consultants’ commission depends on negotiating an outcome for your property, if there is too much competition amongst agents to grab buyers then you will only receive lower offers.
Single commission rate: The appointment of a single consulting company reduces multiple commission rates as proposed to employing multiple companies with different commission rates.
Good quality marketing: With an exclusive mandate, the consultant you employ is solely responsible for the sale of your property. Therefore, it is their job to focus on your project alone and to create a campaign that is filled with their best resources. Your project is the only one that is focused on and promoted on all their platforms.
No over-exposure: Having one consultancy makes it easier for your buyers to know who to contact, it also prevents you from seeming desperate to buyers. This also helps in creating exclusivity and makes it easier for buyers to find, evaluate, and buy your property.
No offer acceptance obligation: When there are multiple consultancies involved with your property they might pressure you to accept low price offers just for the purpose of making a sale. But, with a single dedicated company, you will get the best price for your property and you have no worries of having to accept low offers.
Estate Agent accountability: An exclusive mandate is signed between your company and the consultancy and as such, the consultancy is obligated to work for you and work the way you request them to under a contract.
It also makes the consultancy accountable to give you their highest level of commitment which in turn benefits you as the seller.
How to choose a consulting company for an exclusive mandate –
One of the biggest mistakes a company can make is choosing the wrong consultancy. Putting all your eggs in one basket indeed increases a lot of risks but it could also boost your property sales at the same time.
It is highly important to pay utmost attention while choosing your consultancy. Find out the following information from a consultant when you go to interview them:
Whether the consultancy is area-specific or they work in multiple areas around the city. Companies with an intimate knowledge of the local and area-specific properties will always be in a better position to sell your property.
Whether the consultancy has a good grasp of the selling process or not.
Whether the consultancy has a good rapport with locals in your area or not. Try to ask consultancies for references or check their sites’ and Google reviews.
Whether they are thorough with property evaluations or not. It is necessary to find a consultancy that supports evaluations with proper research, you do not want your property to be under-valued or over-valued.
Whether the consultancy has run successful seller campaigns previously or not, and if their marketing is backed with data and relevant research and experience.
Whether a consultancy has the ability to refer your property abroad through a global referral system.
Opting for an exclusive mandate is a positive move but you need to make sure that it is done with a company that has your best interests in mind. Make sure that you’re thorough with the questions mentioned above so that you can ensure that your property is in the right consultancy’s hands.
Contract formation and details -
The agency that you choose is the one that will be representing your company through a sole and exclusive contract. The contract that is formed will be one that is done in writing which is inclusive of the expiry date or duration of the mandate.
This contract will also include your roles and the consultancy’s responsibilities and duties towards promoting and selling your property. A consultancy should always take time and explain the meaning and consequences of the mandate so that you never have to experience any unexpected events during the mandate.
Once your company is satisfied with the mandate, you may sign the document and your consultant will provide you with a copy of the mandate upon conclusion.
The contract may be extended even after its expiry under the case where your consultancy is unable to sell your property within the mandated time frame. This ensures that you enjoy all the perks of an exclusive mandate for a longer period of time.