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The inside scoop on open mandates

The inside scoop on open mandates

Private Property South Africa
RE/MAX

Many people opt for giving open mandates to lots of agents thinking that it will get them more exposure, in reality it gets them less:

  • Because the agent doesn’t offer to share it with other agents in case they go directly to the seller!

  • Remax agents have been trained from scratch to share their mandates, in this way it is not the old fashioned or greedy method of trying to sell the property on my own! I rather instantly send it through our system and immediately 160 hungry professional agents in Property Associates all try and sell it together to all the clients on their books. We have introduced a system whereby you entrust our GROUP (market leaders in the area-70% market share) and enter into a “sole Mandate” with us and we immediately put it into the MACHINE and email it out through our system.

  • Secondly the agent is secure for 3 to 6 months (depending on the term of the mandate) so he is confident to spend his money marketing and even online marketing costs money if you want to stay on the front pages.

  • Thirdly There's also a lot at stake in terms of double commissions. There was recently a case where the seller and the buyer was forced to pay out both the commissions. So this is really dangerous for the seller , firstly he is selling his house at an all time low in the cycle, now not only is he down there, but he must pay out commission twice. The agent of course did their job, so its fair that they get paid, but it wreaks havoc on the seller's cash flow and projections! Tread carefully, and take advice in doubt.

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