There are valid reasons, says John Weston, the Rawson Property Group’s franchise principal for Bergvliet, whose territory includes the Meadowridge, Plumstead and Southfield areas, why so many of South Africa’s top estate agents prefer to operate on a sole mandate basis.
“Anyone tracing the history of residential property in South Africa over the last two decades will find ample testimony from the professional agents that a sole mandate is preferable because it ensures absolute commitment not only on the part of the agent but also on the part of the seller – and this commitment bears fruit.”
“With a sole mandate,” says Weston, “the agent has complete control of the sale process and this enables them to secure the best possible sales price. I cannot stress enough how vital it is to the smooth running of the marketing process not to have other agents interfering at some stage. All my experience goes to show, time and again, that interference leads to the seller being talked into and accepting a value/price lower than what he could have achieved.”
Sellers who lack confidence in their estate agent are inclined, says Weston, to open the mandate to a number of agents in order to achieve what they think will be the highest possible value.
“If the property is clearly saleable,” says Weston, “what happens in these situations is that the agents will scramble to be the first in with an offer – and often the seller will accept this offer although their best interests may not have been taken into consideration.”
“By way of contrast, the sole agent will have committed themselves, in writing, to perform in every way to the seller’s advantage. Knowing that all offers have to be channeled through him, he can negotiate with the buyer to achieve optimum value and if this takes more time, it will be time well spent. Appointing a single agent also means that, should a counter proposal be made by the seller, the agent can present it in a professional manner. The sale may take a little longer, but in view of the wide discrepancy now sometimes experienced in the offers we receive, this will add positive value to the final agreed price.
A further advantage of sole mandates, says Weston, is that the sole agent can spend far more time and money on giving the property adequate marketing and media exposure – and this definitely has proven results.
In addition, says Weston, the sole mandate system in ensuring that only one agent is given keys to the home, greatly increases its security, especially if the agent has permission to visit when the owner is not there. When, however, four or five agents have access to a property it is very difficult to apportion responsibility.
Weston says that “a very high percentage” of his mandates are handled on the sole mandate basis – and over the last 18 to 24 months every sole mandate has resulted in a sale, the average selling time usually being 30-45 days or less.
“Of course,” adds Weston, “we have to accept that Bergvliet and Meadowridge, like many other areas, are now sellers’ markets – with steadily improving prices. Lower end freehold properties are now selling at an average price of R2,1 million and the higher end properties around R3,2 million.”
“In the sectional title market (mainly Plumstead and Southfield), two bedroom units can be had for around R600,000 and top end units for R900,000, with some three bedroom units priced as high as R1,4 million. In the current high demand market, professional agents still secure most of their stock on a sole mandate basis because they are well known and recognized for their dedicated approach and efficiency.”
