Setting a selling price and signing the mandate

Private Property South Africa
Cathy Nolan

When you have chosen an estate agent to help you market your home for sale, that agent will use market research methods, along with her knowledge, experience and expertise, to set the best possible selling price (also called the listing price) for your property. Remember that the selling price must be attractive to potential buyers under current property market conditions, and that a professional, accredited agent is the best person to advise you on setting this price.

After the selling price has been agreed on, you will be asked to sign a mandate document (also known as a listing contract) in which you instruct the agency to market your property for sale. In terms of the Consumer Protection Act, this document must be easy-to-understand and not ambiguous.

Be aware that, once this mandate is signed, the contract comes into existence and both parties are bound by the terms and conditions of the mandate. For example, if you reject an offer on your property that matches or exceeds the agreed listing price, you are liable to pay the agent commission on the offer at the agreed rate.

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