Understanding Real Estate Mandates
Do you own a home and want to sell it? It is not easy to choose among the multitude of real estate agents, but there are tips to help you along the way. The first thing to ask yourself is which mandate will be best. There are three types of mandates: exclusive, semi-exclusive or straightforward. It is you who defines the type of mandate that will bind you to your real estate agent(s).
Exclusive mandates are most active and most restrictive
Exclusive mandates are the most restrictive but, by far, the most efficient. The buyer or seller will sign with a Kapolei Hawaii Realtor that is licensed to negotiate the purchase or sale for a specified period - usually three months. You can, however, negotiate the length of time you are tied to the agency.
Although the broker does everything possible to sell or buy the property as quickly as possible and at the best price, it may be prudent to reduce this period to two months, which will save you time if the home has not been bought or sold. If you have an exclusive mandate, you can ask your agency to cover the cost of the mandatory real estate diagnostics to be carried out before the sale.
Semi-exclusive mandate
By choosing this type of mandate, the owner guarantees the exclusivity of the sale to a single real estate agency while reserving the possibility of finding themselves a buyer. They will not pay a commission by finding the purchaser on their own unless a clause is provided in the contract and imposes a reduced commission. People must be careful to check that the buyer found did not previously visit the property before with the real estate agent.
The simple mandate is the least restrictive but also the most hazardous
A simple mandate is the one that leaves people with the most freedom. They can sell their property by themselves and entrust the mandate to several agencies at the same time. If the individual opts for the simple mandate, experts advise people to limit themselves to three agencies. Privileged agencies that broadcast their client’s ad to partners, if any, have to share their commission.
Each type of mandate has its advantages and disadvantages. It's up to you to find the right balance between efficiency and freedom, depending on the characteristics of the property being sold and the state of the market, among other things.
Exclusive mandates are most active and most restrictive
Exclusive mandates are the most restrictive but, by far, the most efficient. The buyer or seller will sign with a Kapolei Hawaii Realtor that is licensed to negotiate the purchase or sale for a specified period - usually three months. You can, however, negotiate the length of time you are tied to the agency.
Although the broker does everything possible to sell or buy the property as quickly as possible and at the best price, it may be prudent to reduce this period to two months, which will save you time if the home has not been bought or sold. If you have an exclusive mandate, you can ask your agency to cover the cost of the mandatory real estate diagnostics to be carried out before the sale.
Semi-exclusive mandate
By choosing this type of mandate, the owner guarantees the exclusivity of the sale to a single real estate agency while reserving the possibility of finding themselves a buyer. They will not pay a commission by finding the purchaser on their own unless a clause is provided in the contract and imposes a reduced commission. People must be careful to check that the buyer found did not previously visit the property before with the real estate agent.
The simple mandate is the least restrictive but also the most hazardous
A simple mandate is the one that leaves people with the most freedom. They can sell their property by themselves and entrust the mandate to several agencies at the same time. If the individual opts for the simple mandate, experts advise people to limit themselves to three agencies. Privileged agencies that broadcast their client’s ad to partners, if any, have to share their commission.
Each type of mandate has its advantages and disadvantages. It's up to you to find the right balance between efficiency and freedom, depending on the characteristics of the property being sold and the state of the market, among other things.
