Types of Estate Agent Mandate
Conventionally, there are 3 different types of estate agent mandate: an open mandate, a multi-listing mandate or a sole mandate.
- Open Mandate with an Estate Agent
If you want many agents to market your house at the same time, you could sign an open mandate with each estate agent. With this arrangement, whichever estate agent brings the buyer gets the commission and the other agents get nothing.
In fact, you need to sign an open mandate so that issues like the commission percentage are agreed in advance of a sale.
As the seller, an open mandate must seem an attractive option because you have many estate agents selling for you and thus you would expect to get greater marketing exposure.
- Multi-listing Mandate with an Estate Agent
Some estate agencies have a multi-listing (“mls”) arrangement with other agencies. What this means is that after you sign the multi-listing mandate with the “listing agent”, your property details are sent to the other member agencies in the multi-listing group.
These other estate agents can then also market your property and will approach you directly if they think they have a potential buyer. If one of these other agents does find a buyer, then the commission is shared (usually equally) between the listing agent and the referring or “selling” agent who found the buyer.
The multi-listing mandate may be called a “letter of authorization” and is technically a shared sole and exclusive mandate.
- Sole Mandate with an Estate Agent
A single estate agent is authorized to market your property and, when the property is sold, the agent is paid regardless of who sourced the buyer (although it is usually the agent).
The estate agent who has the mandate with you may often market your property informally with other agents whom your agent trusts. If one of those estate agents refer a buyer to your agent, then they will usually get a share of the commission. However, this arrangement is not your concern and you only have to deal with the single estate agent you appointed. Your agent retains control of the selling process and you won’t get calls from other estate agents.
Strictly speaking, unless the mandate specifically states otherwise, if the seller him- or herself finds a buyer then no commission is payable to the agent. However, normally a sole mandate will include wording (such as “sole selling rights”) to make it “exclusive”, which means that even if the seller finds a buyer then the agent will earn commission.
As the seller it may seem unfair that if you find a buyer yourself then the estate agent will still earn a commission. Plus, you are “locked in” to using the services of that agent for the agreed time. So, as the seller, you do take a risk when you grant a sole mandate and you must be careful to select a great agent who will give your property maximum exposure.
Selling Houses in the Modern Era
Print advertising was necessary for selling houses in the past and all estate agents used to advertise their property listings in the newspapers. In our era the internet is re-shaping property marketing. Most estate agents in Tanzania aren’t aware of this, but few appreciate just how powerful the internet can be for selling Properties, whether to local buyers or International.
Marketing methods for selling houses today
Let’s consider the ways that houses can be marketed, the old and the new:
- On a For Sale board outside your home. Depending on your area, a number of buyer leads may be generated by a simple For Sale board erected outside your house. These boards attract buyers physically looking in your area. This method of advertising will continue to be effective but inevitably will reduce in importance. The reasons for this is : fewer people than before will drive around a neighborhoods as a first step to finding a new house (since they can search online, petrol is more expensive and time is limited)
- In the print media (newspapers or magazines). Advertising in selected local newspapers is still common for estate agencies even though it is expensive. Except in some niche markets, print advertising is no longer as effective in selling houses as it was before the internet. Estate agencies often advertise simply for brand exposure rather than to sell their listed properties.
- Networking between estate agents. Estate agents in an office or even between offices will often compare notes on properties that they are selling. Each agent may have a “buyer list” of potential buyers and could find a match between their buyer and the house that another agent is selling.
- On the internet. This is increasingly important. In developed countries 80-90% of potential buyers start searching for Properties on the internet. The percentage in Tanzania is probably lower, but is relatively higher for younger people and the more internet-savvy. Whether selling privately or employing an estate agent, effective online marketing is crucial to ultimately selling your house.
It is true that the more websites you list on, the greater the chances of selling your house. In reality, the overwhelming majority of websites that allow property listings are worthless because they don’t have large numbers of people visiting them. In the modern era, marketing should be focused only on the recognized major property portals that are selling houses in huge volumes.
Home Staging Secrets to Sell a House
What is home staging and how does it help to sell a house?
To sell a house, buyers must first want to view it, and then they must literally feel “at home” in it when they do. Home staging helps creates the right impression of your home with buyers.
Home staging refers to the art of making your house look as attractive as possible without doing major renovations. When you sell a house it has to compete for attention with many other properties. So you need your house to make a good first impression, whether that is in online photographs or when a potential buyer comes to inspect it.
Home staging includes techniques like opening the doors and windows, switching on the lights, or creating artistic interior decorations (perhaps by using cushions or furniture that you borrow for the purpose). Correctly done, home staging will increase the chances of selling a house.
A Home Staging Presentation Guide
Don’t forget that buyers are trying to imagine themselves living in your house.
So try to remember why you were attracted to the house when you bought it. What will you miss most when you sell and move out? This will help you to identify the most attractive selling points of your house which you can emphasize to potential buyers.
- Give your house some “kerb” appeal
Remember that when you sell a house many potential buyers will first drive past your home to see if it looks attractive. So do yourself a favor and make it as neat as possible, especially when viewed from the road:
- remove rubbish bins
- weed the garden, pick up leaves, cut the lawn and trim hedges or bushes
- have some colorful pot plants
- remove dirty old cars, bicycles, general rubbish
- oil the gate so that it opens without squeaking
- make sure the door bell works
- clean the pool, if you have one
- if you have car, make sure it is clean and tidy
- fix any masonry cracks
- if you can, apply a fresh coat of paint to the door or fence.
- Clean, tidy homes with no clutter sell faster
Remember that a potential buyer wants to imagine relaxing in your house. Do you think this is possible if the bath is dirty, the shelves and walls are full of your old photographs, or the house smells of your pets?!
You can sell a house by creating the impression of a clean, spacious shell that the buyer can dream about personalizing. These home staging tips can help:
- clean the bath
- if you have a shower curtain, replace it
- clean the house from top to bottom. Watch out for grubby marks on doors, and dusty curtains.
- store kitchen appliances so that they don’t take up space on the counters. Clear counters make the kitchen look bigger. If you have an appliance from a very expensive brand, you could choose to leave that on the counter. To sell a house the buyer needs to believe that he or she is making an inspirational purchase, so showing off a quality appliance could have the required effect!
- pack away photographs to free up space and make the house less personal
- pack away clutter – bits and pieces on shelves or in the rooms that make your house look untidy and cramped.
- get rid of junk. When you sell your house you won’t want to take the junk with you so remove it now before buyers see it.
- open the windows and doors to let the fresh air in
- turn the lights on
- have a bowl of fresh flowers on the dining room table
- roast some coffee, or bake bread or cookies. These aromas are homely and warm
- remove any large or excess furniture in a room that makes it look cramped
- if you have extra rooms, convert them to bedrooms which are always major attractions to buyers.
- Creative interior decorating
Ask a creative friend to make interior decorating suggestions, such as re-arranging the furniture or adding borrowed cushions or pictures. The result may be not be to your personal taste but could be more attractive to the average buyer. Remember, you want to sell a house to a stranger – so swallow your pride and make any changes that will help you achieve your goal!
- Use the right photographs of the house
When advertising on the internet, the first or main picture of your home should be an exterior view of the house. (You should only show the interior as the main picture if you have a flat or apartment, and you should show the outside in another photograph.) Have pictures taken on a sunny day and preferably earlier in the morning or later in the afternoon so that the light is not too bright.
The well-worn expression “First Impressions Count” is especially true when it comes to selling houses. In summary, if you want to sell a house, understand that home staging is an essential step to getting a quick sale at the price you want.
For Home Sellers.
Selling your home shouldn’t be a stressful ordeal. Making the smart move of choosing a REALTOR® is your first step to ensuring that your investment in your home pays off. Our services and experience allow you to focus on your move while We manage your home sale from our initial consultation to the closing deal, and beyond.
As Your Agent, We Will:
- Complete a comparative market analysis that will compare your home’s value to that of your neighbors.
- Compile a comprehensive plan detailing all the efforts We will employ to sell your home, including Internet and local media.
- Present your home to as many qualified buyers as possible getting your home maximum exposure.
- Help you stage your home and generate curb appeal to ensure you get the highest price.
- Assist with obtaining offers and help you in negotiating the best deal as smoothly as possible.
- Help you find your next home and answer all of your questions about the local market area, including schools, neighborhoods, the local economy, and more.
Closing Costs to Expect:
- Legal / lawyer services fees depend on the sales price of the home as well as your agreement with your lawyer..
- Broker’s commission is a full-service fee and will cost anywhere between 3% to 10%.
- Local property transfer tax, county transfer tax, state transfer tax, and state capital gains tax are the charges that you’ll pay for the privilege of selling your home. Credit to the buyer of unpaid real estate taxes for the prior or current year are variable and depend on when you close and when your taxes are due.
- Home inspections fees are in some circumstances paid for by the seller and include pest, radon and other inspections.
- Miscellaneous fees can accrue from correcting problems noticed during the home inspection.
For Home Buyers.
Buying a home is an exciting time in one’s life. Making the smart move of choosing a REALTOR® is your first step to ensuring that your new home and community meets your needs. Our services and experience range from financial aid to helping you find the home that best suits you and your family. For your convenience, We also provide listings by email.
As Your Agent, We Will:
- Assure that you see all the properties in the area that meet your criteria.
- Guide you through the entire home buying process, from finding homes to look at, to getting the best financing.
- Make sure you don’t pay too much for your new home and help you avoid costly mistakes.
- Answer all of your questions about the local market area, including schools, neighborhoods, the local economy, and more.
Before You Start Looking For Your New Home:
- Check your Credit rating. Straighten out any errors before it’s too late.
- Determine a comfortable monthly budget for your new purchase, including down payment and monthly payment.
- Find a loan program that meets your needs and get pre-qualified (preferably pre-approved).
- Choose a REALTOR® that you trust and who understands your needs.
- Determine what neighborhood best matches your needs.
- Identify important features you need your new home to have.
Closing Costs to Expect:
- Lender fees include charges for loan processing, underwriting, preparation and establishing an escrow account.
- Third-party fees include charges for insurance, title search, and other inspections such as termites.
- Government fees include deed recording and state & local mortgage taxes.
- Escrow and interest fees include homeowner’s insurance, loan interest, real estate taxes, and occasionally private mortgage insurance.