Owners of property constantly ponder over this question, whether or not to appoint just one agent to market the property or just open up to as many agents as possible . Before we go into the actual thought in the decision making process it is important to understand the definition of an Open and Exclusive Mandate or Listing.
Open Listing means to appoint as many agents as you please to work on the marketing of the property. The owner executes an open listing with more than one real estate agent and pays the agent who brings an able client whose offer the owner accepts.
Disadvantages of an Open Mandate
There are many good reasons for the Owner/Seller to sign a Exclusive listing also called Sole Mandate. We know that Owners/Sellers want the most money for their property with the least amount of problems. By dealing with one Agent this can be achieved. It is a fallacy that many Agents will do a better job than one Agent can. All tenants/buyers interested in the property are funnelled through to one Agent who can negotiate with each one and thus obtain the best price.
Exclusive listing is a legally binding contract entered into by the Owner/Seller and the Estate Agent. It gives the Agent the legal right to be the only marketer of the property over a certain period of time and at a price agreed to by the Owner/Seller and the Agent. If Agents are sincere in their determination to rent/sell a property, then there are many obvious benefits which accrue to Owner/Seller willing to sign a SOLE SELLING MANDATE.
Advantages of an Exclusive Mandate
Why owners prefer exclusive mandate?