The holy grail of estate agents: the exclusive mandate

For sellers, opting for a simple mandate stimulates competition between agencies, who will do everything to win the commission. This is a preconceived idea that has to be fought in real estate. So, explain to them that it’s quite the opposite.

Simple mandate

Several agencies will estimate the value of the property. Hence different listings for the same property may have prices that aren’t always the same.

• This is enough to confuse buyers that might make up their minds too quickly... and disengage.
• You run the risk of property devaluation due to buyers mistrusting the quality of the property. “If the property shows up everywhere, that means it hasn’t sold, or there is a problem or numerous defects”.

Exclusive mandate

• Only one highly motivated agent works in complete serenity, knowing they don’t have to compete. Their focus: sell as quickly as possible (within the time limit set by the mandate) and at the best price. As a result, they deploy all the means available to them.
• Working with a local agent simplifies things and makes it possible for the seller to avoid taking certain (legal) steps.
• Showcases the property exclusively on partner sites, with the best spots thanks to automatic boosts.

3 strengths of the exclusive mandate

• It creates a sense of rarity around a property.
• It allows you to control your communication with your customers and everything that happens relating to the property: visits, fees, etc.
• It reduces the time to market by protecting the seller’s interests. And yes, the negotiation margins are always lower with an exclusive mandate. The result: the seller remains financially stable, a powerful argument.
  

Exclusive mandate

Only one highly motivated agent works in complete serenity, knowing they don’t have to compete. Their focus: sell as quickly as possible (within the time limit set by the mandate) and at the best price. As a result, they deploy all the means available to them.

• Working with a local agent simplifies things and makes it possible for the seller to avoid taking certain (legal) steps.
• The agent showcases the property exclusively on partner sites, with the best spots thanks to automatic boosts.

3 strengths of the exclusive mandate

1. It creates a sense of rarity around a property.
2. It allows you to control your communication with your customers and everything that happens relating to the property: visits, fees, etc.
3. It reduces the time to market by protecting the seller’s interests. And yes, the negotiation margins are always lower with an exclusive mandate.

The result: the seller remains financially stable, a powerful argument.

A real estate sale is, of course, the story of a seller and a buyer coming together around a property. But since 7 out of 10 sales are made through a professional*, you are also in the loop.

Therefore, you cannot (and should not) exempt yourself from the “learn about your customer” step. Learn about who you are working with. Why do they want to sell, who are they, what’s their lifestyle, etc.? The key to selling is to understand their needs and expectations. So spend time with them and create the confidence to make you indispensable in this transaction.

This ‘Customer Focus’ step is crucial to establishing a bond. And when you discuss the subject, the exclusive mandate will be the obvious choice for the client,” confirms Romain Cartier, in France.

You reap what you sow, as the saying goes. At the end of the appraisal appointment, send the prospect a summary of your discussion. Explain the different phases of a property sale, knowing that not everyone is an expert on the subject. With so much to think about, they will realise that the sale process is not a long and calm flow and that your business is sometimes technical and often tedious.

The thoroughness of this report is proof that they are making the right choice by signing with you.

Anticipate their worries and anxieties. From the first meeting, be able to provide answers to the seller’s numerous questions, as they don’t know your profession. You will be gauged on your technical skills, if not judged.

And this begins with the crucial topic of property value estimation. As you know, they will have already carried out their own evaluation and have an idea. But you are an expert on the subject, have your own sources, and you have the capacity to analyse sales recently made in the sector.

So? Present a justified estimate (Etalab and other resources), backed by psychology and empathic reasoning. Remember that the emotional burden associated with the price takes into account not only the seller’s attachment to their property but also the possibility of acquiring a new home as a result of this transaction.

A convincing quality estimate is a good start, but it doesn’t close the deal. Sometimes the seller thinks they are able to sell it themselves. In fact, 30% of sellers have sold independently in the last 3 years*. Continue to be persuasive through your professional reasoning and tools.

Put your cards on the table with the seller. You simply suggest they sell their home in complete serenity while saving time and energy.

1. Aside from the estimation, you provide legal and financial solutions. Don’t hesitate to discuss the issue of diagnostics (inspections), explain the ins and outs of the sales file, and discuss the financing solutions (bridging loans, etc.) if the situation requires it.
   
   
2. 78% of salespeople need proof of their agents’ commitment to their projects. Show the services that an individual will never have access to if they sell solo. Play the cards in your hand: the utilisation of digital tools throughout the sales journey, professional photographers, drones, virtual tours, video, electronic signatures, home staging with an interior designer, 3D photos to transform or renovate the property, movers’ platform, etc.
   
   
3. Imagine the sales journey together, go through its stages, and in particular:
   - organising and managing visits,
   - finding buyers,
   - selecting and qualifying those buyers (solvency, etc.)
   
   You hold the solutions to the 3 main reasons that motivate sellers to go through an agency* closely followed by the administrative management of the sale.
   
   It’s obvious! These pivotal moments require availability, expertise, and analytical capacity. These skills are not necessarily within reach of a seller wishing to sell privately. And what if several professionals are involved simultaneously? The seller may be caught in the crossfire of different demands, turning the sales journey into chaos.
   
   With an exclusive mandate, you organise the visits, the selection of reliable buyers is better filtered, and of higher quality, you advise on pre-sale renovations, propose a price adjustment, and so on. You control the sales process and can work more efficiently for your customer.
   
   
4. Your list of contacts is the ultimate argument to make a difference and win the seller over. Notaries, brokers, inspections, and tradespeople, you have tried and tested their services. Your trusted partners will work for and with your client. The second advantage of this list of contacts is buyers who are looking for a property with a financial capacity that has already been verified.

A reminder: only 30% of mandates are exclusive... but they represent 70% of sales. So there is no mystery as to how to see progress in your sales. The exclusive mandate ensures your work is more peaceful and efficient if you spend the necessary energy and effort understanding your customers’ expectations. A sale is not a long calm process: convince the customer to go through an agent, assure them that you are the best in the market, and have them sign an exclusive mandate. Now you hold the winning cards. It’s your turn to make your move.

* Private Sales PathStudy, Harris Interactive for Meilleurs Agents, May 2021