Why is an exclusive mandate necessary ?

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Rudolphe ABEN

Why is an exclusive mandate necessary ?

With the exclusive mandate, you can take care of your mandates and close more deals. That's why we've pushed and provided ways for you to make exclusivity a priority. Being exclusive gives you and your client's peace of mind, allowing you to focus on providing excellent service. Acquire an understanding of the best justifications for a private person as well as for yourself. To summarize, we decided to write this article to explain to you why an exclusive mandate is necessary and what are the disadvantages of a simple mandate?

Make a sale twice as fast

Compared to an exclusive mandate, a simple mandate takes longer to implement. The average duration of an exclusive sales contract is 3 months. In the case of a simple mandate, this process can take up to six months.

These figures can be explained by different elements. The real estate agent no longer hesitates to make a promise without consideration. When it comes to their simple mandates, many competing agencies are ultimately aiming for the same thing. If they don't adapt, agents will be left behind.

If you and your agent sign an exclusivity agreement, the process will go more smoothly. Communication with your consultant is simplified because you have one point of contact. Having to contact multiple agencies to close the sale is more time consuming and inefficient than working with one.

Buyers' interest in your property will increase with your exclusive mandate

The term "single mandate" tends to evoke negative connotations. If several real estate agencies present a property for sale, the owner may have too much interest in a short period of time. The problem is that not all of these organizations put the same emphasis on their mission or use the same metrics to measure success. Overexposure is not the only problem; the price of the property varies depending on the real estate company you go through. For some reason, the mandate seems weak and compromised.

When you hire an agent to handle the sale of your home exclusively, they can focus on promoting it. In other words, they will make your new home a showpiece. We can break down the advertising methods used to increase revenue.

Property prices can be increased during negotiations

In an exclusive mandate, the seller's agent is legally bound to do whatever it takes to make you happy as a buyer. The final sale price of your home is his number one concern.

To negotiate effectively, a buyer needs a clear directive. If one real estate agency offers a high price for a home, the buyer may try to haggle for a lower price with another agency. Since there is intense rivalry between the agencies responsible for selling the property, all will do their best to be the first to sell. An advantage for the buyer. Since only one expert is in charge of an exclusive mandate, the margin of error is reduced to a minimum. A real estate agent will not reduce the asking price of a property to sell it.

Think about the property's possibilities. The real estate agent may suggest new floor plans or staging of the home to increase the appeal of the property.

Having an exclusive mandate increases the likelihood of finding the right buyer

With an exclusive mandate, agents can extend their time commitment to potential buyers. If you are selling, why should I buy? To increase the likelihood of finding a reliable replacement that fits your organization.

Agencies are competing for the most basic tasks. Buyers will be sought out quickly. Buyer qualifications will be lower than with an exclusive mandate due to agent time constraints. With more time at their disposal, they can reassure potential buyers and provide them with useful information, which helps close a deal. With an exclusive mandate, buyers do not have to negotiate with other third parties. They benefit from one interaction.

The exclusive mandate allows for more effective advertising

As we have established, an exclusive mandate allows a real estate agent to devote more resources to a single client. Because the budget is larger than a single mandate, it can ensure customized service and, by extension, effective marketing tactics.

There is an expectation that listings will provide more information. Agents selling homes will have more money to spend on things like hiring a professional photographer or using a virtual tour app to sketch out a 3D model.

An exclusive mandate makes it easier to model any necessary changes or renovations to the property. It is not uncommon for organizations to change their strategies and resources to better achieve their goals. If a potential buyer has difficulty visualizing the space after renovation, some agents may be able to provide a 3D model of the space.

The potential buyer can imagine himself in the house, which increases the likelihood that he will make an offer. A successful sale requires careful listening and clear expression of needs to the most qualified buyers. The organization has the option of doing this in-house or working with a communications company to produce the necessary materials.

What is a simple mandate?

Now compare this with the simple mandate. You can put your house up for sale to anyone you want. In addition, you can search for a buyer independently.

The flexibility is increased with a simple mandate compared to an exclusive mandate. Unfortunately, this is also its biggest flaw. Why? Consider the disadvantages of this proposition.

The disadvantages of a simple mandate

- Agency inertia: Real estate agencies understand that they may not receive a commission if you sell your home privately or through another party. They will save money on selling and advertising.

- Longer sale: The average sale time is double the length of an exclusive mandate, i.e. six months.

- No more risk of failure in negotiations: Potential buyers may see your home listed with more than one agency. Since they will assume that it is not selling well, this should open the door to a discussion on the price.

- High personal investment: you are in charge of potential buyers and as many real estate agents as necessary. This means that it is a slow process.

The exclusive mandate is not the final step. It is a great tool for your real estate agent to use in selling your home. You should always be careful when choosing a real estate agent.