Benefits and misconception of signing a sole mandate

Many sellers are normally resistant in signing a sole and exclusive mandate explains Chris Cullen, Sales Executive at In2assets the Durban commercial property specialists, because sellers are not aware of the benefits if and when they sign a sole mandate.

Benefits and misconception of signing a sole mandate

Many sellers are normally resistant in signing a sole and exclusive mandate explains Chris Cullen, Sales Executive at In2assets the Durban commercial property specialists, because sellers are not aware of the benefits if and when they sign a sole mandate.

Signing a sole mandate ensures simplicity resulting in only one agent dealing with all buyers and external brokers. At In2assets we engage with most other brokers and prepared to share with them if they bring a buyer to the table and therefore we offer a broker “Participation Program” explains Chris Cullen further.

When In2assets is mandated, its marketing and sales team immediately commences with an aggressive marketing campaign in the open market. We do not withhold the property from the market to prevent other brokers from getting involved. The key to the successful sale is maximum exposure, explains Cullen further.

In2assets business philosophy is openness and transparency in all transactions. Once we receive a sole mandate, we want the entire market to know that that this specific property is for sale. In the absence of a sole mandate we will not be able to do this, which is to the prejudice of the Seller.

When selling a commercial property, we build a personal relationship with the Seller with frequent up to date reports, which means we are the sole channel of communication preventing numerous and duplicated communication from a variety of brokers with sometimes contradicting feedback from the market.

Through a sole mandate In2assets ensures priority is given to a specific property which includes the entire focus on this specific property during the mandate period, which forces performance driven marketing with the aim to sell it in the shortest possible period of time at the highest possible price.

The safety net for the seller is the reserve price in the sole mandate which should be in line what the market is prepared to pay for the property.

Open mandates confuses the market

An open mandate to all brokers frequently confuses sellers through conflicting price estimations conveyed to them often solely to obtain a mandate in the open market or to obtain a mandate at a ‘discounted price’ to ensure a quick sale comments Cullen further.

A sole mandate does not have to be for long or indefinite periods of time. Many Sellers believe in a ‘shotgun’ approach by mandating all brokers to sell a specific property, sometimes even without a proper mandate being signed. Many brokers deal with the same buyers often which leads to unnecessary legal action due to the same buyer been introduced to the same property by various brokers exposing the seller to claims for double commission and legal costs. A sole mandate controlled by a market leader property specialist such as In2assets eliminates any such risk. Brokers on an open mandate normally focus only on their selective data base of buyers but representing hundreds of sellers at the same time, thereby totally excluding the rest of the market from such a property.  Buyers enjoy more benefits than sellers in the event of a sole mandate. By way of a sole mandate the relevant property is openly and transparently marketed for the entire buyer’s market to know of without limited and secretive release. Buyers also have an equal opportunity to be exposed to any property . This is exactly what the In2assets Auction marketing strategy ensures.

Cullen ends his statement that there in fact exists more benefits to a Seller when executing a sole mandate compared to an open mandate which they are not always aware of. “In respect of public Auctions we only work on a sole mandate and that is why we have been so successful in the past.”

For further information contact Chris Cullen on 071 471 1819 or ccullen@in2assets.com

 

Posted by In2Assets