Difference Between A Sole Mandate and an Open Mandate
An agent needs permission from the owner to sell a property. This is called a mandate.
A sole mandate is a written agreement between the owner and the agent or agency.
An open mandate can be a written or verbal agreement.
Many property sellers believe that it is best to give their homes to three or more agents on an open mandate basis.
With an open mandate, there is less incentive for an agent to spend time, money and effort marketing the property.
In addition, there is nothing to stop unscrupulous agents from advertising a property at a lower price than the seller wants.
This leads to agents undercutting each other to attract prospective buyers.
The result is that your advertised price will drop fast and furiously in a price war fashion, rather than slowly and practically.
Is this something you can afford to have happen with your home?
