THE DIFFERENCE BETWEEN SOLE VS OPEN MANDATESRE
In real estate, we know that too many cooks spoil the broth. If you’re a first-time seller, the terms ‘sole mandate’ and ‘open mandate’ have most likely come up in the early stages of the home selling journey and may have caused some uncertainty. For those who are struggling to decide what’s best for them, below are the differences between sole versus open mandates:
What is a sole mandate?
A sole mandate is an exclusive contract that stipulates an allotted timeframe during which you may not appoint another agent to market your property. You’ll only be allowed to appoint another agent once the timeframe has elapsed. You will still be allowed to market and sell the property yourself, but only if this is stipulated in the contract you signed and you may be required to pay a fee to the sole mandated agent. However, if you give your agent an exclusive sole mandate, you won’t be allowed to sell your property privately.
What is an open mandate?
An open mandate means that your property is listed with more than one real estate agent from a variety of agencies, each of whom will be marketing and trying to sell your home. Open mandates are often verbal agreements; therefore, the lack of written agreement leaves room for misinterpretation, which could cause conflict.
Sole mandates are simpler and safer
Selling your home can be stressful, and quite frankly, having multiple agents trying to sell your home may add to the chaos. It’s a common belief that if multiple agencies market your home it’ll reach more buyers and your property will sell quicker. However, it’s actually far more effective to sign a sole mandate and allow one agent the space to secure the best sale. Additionally, a sole mandate is the safer option amidst a pandemic because you’ll only have to deal with one agent rather than several.
Advice from one source vs many
When you’re working with a trusted real estate agent, their guidance can end up saving you money, time, and stress. Your trusted agent can provide you with reliable information and guidance. But, if you decide to work with multiple agents, it can become difficult to know whose advice to follow. Open mandates also increase the chance of a possible double commission claim. With a sole mandate, you’ll have the freedom to be as open and honest with your agent as you’d like. Your agent will be available to clear up any uncertainties you may have about the selling process.
Sole focus vs open playing field
Sole mandated agents are guaranteed to be there to guide you through the selling journey. With a signed sole mandate, your agent will be inspired to put in maximum effort when fulfilling your home selling goals. Whereas, often on open mandates, agents are less inclined to spend loads of time marketing your property, which may reduce your home’s chances of selling.
Final advice
Signing a sole mandate is an opportunity to make the process of selling your home simpler and less stressful. However, before signing any mandate, you should do your due diligence and find an experienced real estate professional who’ll have your best interest as a priority and provide you with educated advice to help you make the right decisions.
