Exclusive or open mandate? What sellers need to know

Selling a home is more than finding a buyer. The mandate you choose can influence pricing, marketing, negotiations, accountability and ultimately the sale.

• An exclusive mandate creates one accountable agent responsible for pricing, marketing, buyer engagement, negotiation and managing the sale from start to finish.
• An open mandate may increase agent numbers, but risks creating competition between agents when sellers really want competition between prospective buyers.
• Sellers should assess an agent’s market knowledge, marketing capability, negotiation skills, communication and track record before deciding who gets the mandate.

Your mandate can influence the entire sale

When homeowners decide to sell, one of the first questions is often: Should I give the property to one estate agent or several?

At first glance, appointing multiple agents through an open mandate can seem logical. More agents should mean more exposure, more buyers and potentially a quicker sale. But residential property doesn’t necessarily work that way.

According to Dr Andrew Golding, chief executive of Pam Golding Properties, the mandate determines considerably more than who can advertise the home. It can influence pricing strategy, marketing, buyer engagement, negotiations, communication and accountability throughout the transaction.

And given that a property sale can take six to nine months or even a year in some circumstances, sellers should treat the appointment of an agent as a significant business decision. “Like with any important business transaction, one needs to make as informed a decision as possible,” says Golding.

Exclusive mandate vs open mandate: what’s the difference?

Exclusive mandate

The seller appoints one agency or agent for an agreed period and gives them responsibility for managing the sale.

Potential advantages include:

• One clearly accountable agent or agency.
• A coordinated pricing and marketing strategy.
• Consistent communication with the seller.
• Centralised management of prospective buyers.
• Greater continuity throughout negotiations.
• Clear responsibility for responding to market feedback.
• A defined relationship between seller and agent.

Golding says that accountability is one of the important distinctions.

“With an exclusive mandate, there is a mutual commitment from the agent to engage in the activities around selling that home in a responsible and committed way, with accountability.”

Open mandate

An open mandate allows several estate agents to market the same property. The apparent advantage is straightforward: more agents potentially exposing the property to more buyers.

But sellers need to consider the potential disadvantages too.

These can include:

• Multiple agents marketing the same property.
• Less centralised control over buyer communication.
• Potential inconsistencies in positioning and messaging.
• Agents effectively competing against one another for the transaction.
• More complicated coordination for the seller.
• Less clarity over who ultimately takes responsibility for the overall sales strategy.

The critical question isn’t simply how many agents are selling the property. It is where you want the competition to occur.

Create competition between buyers – not agents

This is one of Golding’s strongest arguments.

“As a seller, what you ideally want is to create competition among buyers. But with an open mandate, you can end up creating competition among agents instead.”

That distinction matters.

The objective isn’t maximum agent activity for its own sake. The objective is to achieve the best possible transaction for the seller, ideally at the highest achievable market-related price within an acceptable timeframe.

A coordinated marketing campaign can concentrate buyer interest around the property and potentially create competitive tension between serious purchasers.

That is fundamentally different from several agents racing independently to secure a deal.

Selling a home involves hundreds of touch points

A successful property transaction involves considerably more than uploading photographs and a description to a property portal.

Golding says there can be “literally hundreds of touch points” during a real estate transaction.

The agent may need to manage:

• Initial property assessment and pricing.
• Comparable sales and market research.
• Property preparation and presentation.
• Photography and marketing material.
• Digital and property portal campaigns.
• Buyer enquiries and qualification.
• Viewings and feedback.
• Changes in market conditions.
• Offers and counteroffers.
• Negotiations between buyer and seller.
• Transactional requirements through to conclusion.

The agent therefore needs a combination of local market intelligence, marketing expertise, communication ability and negotiation skills.

“There are also numerous skills that are required of an agent, including negotiation skills, knowledge of the market and an understanding of what is needed to fulfil all of those needs,” says Golding.

Marketing a property now requires strategy

Modern property marketing extends well beyond simply placing a listing online and waiting for enquiries. Buyers research homes across property portals, agency websites, social platforms and other digital channels before deciding whether to view.

That means presentation, positioning and communication need to work together. “Marketing has become increasingly sophisticated and requires a lot of communication, strategy and thought,” Golding says.

Sellers should therefore ask prospective agents exactly how their home will be taken to market.

Important questions include:

• How was the recommended asking price determined?
• Who is the likely target buyer?
• Which marketing channels will be used?
• How will the property be positioned against competing stock?
• How frequently will the seller receive feedback?
• How will buyer enquiries and viewings be managed?
• What happens if the initial strategy doesn’t generate sufficient interest?
• What is the agent’s negotiation strategy once an offer arrives?

Choose the agent before choosing the mandate

Perhaps the most important decision isn’t exclusive versus open.

It is who you trust to sell one of your largest assets.

Golding argues that the relationship between homeowner and estate agent should be based on trust, particularly given the financial and often emotional significance of selling a home.

“You are trusting someone with usually a very significant asset, so it’s really about getting to know the agent and feeling comfortable that you can engage with them in a relationship built importantly on trust.”

That means sellers should look beyond promises of a high selling price. Before signing, assess:

• Local knowledge: Does the agent genuinely understand recent sales, competing stock and buyer demand in your neighbourhood?
• Track record: What comparable properties have they actually sold?
• Pricing strategy: Can they substantiate their recommended asking price with evidence?
• Marketing capability: What will they do beyond simply putting the property online?
• Negotiation skills: Can they protect value when a serious buyer starts negotiating?
• Communication: How often will you receive feedback and from whom?
• Accountability: Who takes responsibility when the strategy needs to change?

Treat your home sale like a major business transaction

For many households, a home is their largest individual asset.

Yet sellers can spend less time selecting the professional responsible for selling it than they would choosing an adviser for a much smaller financial transaction.

Golding believes the sale should be approached with greater commercial discipline. The mandate should clearly establish responsibility, expectations, communication and strategy from the outset.

An exclusive mandate isn’t automatically a guarantee of a successful sale, just as appointing multiple agents isn’t automatically the wrong choice. The quality of the agent, the appropriateness of the asking price, market conditions and the execution of the sales strategy remain critical.

But the underlying principle is straightforward: Don’t choose a mandate simply because it appears to offer the greatest exposure. Choose the structure and the property professional most capable of creating genuine buyer competition, maintaining accountability and protecting the value of your asset.

For sellers, the right question may therefore not be “How many agents can sell my home?” It is: “Who is best equipped to sell my home and what is their strategy for getting me the best possible result?”