Page 19 - Selling your Home - The CommFREE guide to all you need to know

MANDATES : WHAT THEY ARE AND HOW TO DETERMINE

THE RIGHT ONE FOR YOU

If you want an estate agent to sell your property it is recommended that you sign
a mandate with the estate agent upfront, authorising him or her to sell your property on
your behalf. There are 3 different types of mandate that you could choose to sign with

your property agent.

OPTION ONE: OPEN MANDATE WITH A MULTIPLE ESTATE AGENCIES

If you want many estate agents to market your house at the same time, you could sign an
open mandate. With this arrangement, whichever agent brings the buyer gets the

commission and the other estate agents get nothing.

In fact, an open mandate does not require you to sign the mandate agreement you can
give a mandate in a variety of different ways such as: email, messaging, even verbal
(although not recommended), but the Estate Agent is bound by the Estate Agents Code

of conduct (As set by the EAAB) to receive such so that issues like the Selling Price,
Commission Percentage are agreed in advance of a sale.

As the seller, this often seems an attractive option because you have many estate agents
selling for you and thus you would expect to get greater marketing exposure.

But there are many downsides with going the open mandate route:

a) Agents are not going to spend much time marketing your property because they

know that there is a large possibility that all their efforts could go unrewarded if
another estate agent finds a buyer first. Consequently, agents will spend less money
on advertising your home. Agents will put a For Sale sign outside your house and list
your property on their company website (both of which are essentially free to do),

but probably won’t do much more than this.

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