Choosing the right mandate for your property is crucial, especially in a slow or downward market. With properties taking longer to sell or rent, working with the right agent and entering into the appropriate mandate agreement can significantly impact your property’s success. When considering a mandate agreement, here are the types of mandates commonly available in the Zambian real estate market and their potential advantages and disadvantages:
1. Open Mandate:
An open mandate allows property owners to work with multiple agencies to sell or rent their property. Any agency, including the owner, can market the property. The main benefit is the flexibility to work with different agencies and attract a wider pool of potential customers. However, some agencies may not prioritize marketing open mandate properties as much as sole or exclusive mandate properties.
For residential rental properties, an open mandate may be suitable as it can generate more interest and buzz. However, for higher-value rentals and commercial properties, a sole or exclusive mandate tends to bring more focused attention from competent agencies.
2. Sole Mandate:
A sole mandate grants exclusive marketing and selling or rental rights to a single agency. Property owners may also market and sell or rent the property themselves. This type of agreement creates a sense of urgency for the agent to deliver results within a set time.
The benefit of a sole mandate is that the agent is motivated to put in extra effort due to the limited time frame. Agents often collaborate on sole mandate properties, resulting in increased focus and marketing resources. This broader reach, along with a competent agency, can benefit properties more than open mandates. Sole mandates are suitable for properties for sale, commercial rentals, and upmarket or specialized residential rentals.
3. Exclusive Mandate:
An exclusive mandate restricts the marketing and selling or rental rights solely to one agency. Even the property owner cannot be involved in marketing or selling/renting the property. The benefits of an exclusive mandate are similar to a sole mandate, with the added advantage of an agency’s undivided attention.
Exclusive mandates work best for properties for sale, particularly upmarket properties that require focused marketing and significant resource input from the agent. They are also suitable for rental properties under property management agreements. With an exclusive mandate, the agent develops a stronger sense of part-ownership and can generate hands-free residual income for property owners. Exclusive mandates are ideal for commercial properties, specialized properties, new developments, and property owners seeking property management for their portfolios.
If you’re unsure about the most suitable mandate for your property, reach out to us for honest and market-driven guidance in your best interests. We can provide expert advice tailored to your specific situation.
