The term is called ‘open mandate’ and a means that the homeowner has given multiple agents the opportunity to market, advertise, and list their home. This is not the norm about some homeowners think that if one agent is good, more obviously are better, but there are stipulations and drawbacks to having an open mandate.
When most homeowners list their home with a real estate agent they sign a contract that gives that agent the exclusive right to market their property. That agent, in turn, is also the agent that receives the commission for selling the property. That agent receives the commission if they also bring the buyer. But, many homeowners think that if there are more agents out there advertising and listing my property, the better chance I’ll have at getting a buyer. While in theory, this sounds good, the reality of it is that none of these agents are guaranteed the commission on selling your property.
Because there’s no real incentive to sell the property other than the fact that they might be able to get the commission, they won’t put as much effort, time, energy, and of course, money into marketing that property.
With one exclusive agent, they know if they sell the property they get the commission so there is extreme incentive to market that property. Plus, because there’s no contract with an open mandate, there could be a lot of confusion as to who actually sold the property. There could be contention between agents, siding, and you may not even sell the property.
There are so many we “quit this” to open mandate my suggestion is to not even go that route. It’s better to find it agent that is willing, wholeheartedly, to market your property to the best of their ability with all available tools as hard and as aggressively as possible. That agent is definitely working the better off to sell your property and should be rewarded with the commission. If there’s no guarantee or even a chance that a commission will come their way, while to put any more time and effort into it as a full-time agent?
Of course, that agent is usually not the same want to bring the buyer although it can happen, which is called “dual agency”. That’s a whole different can of worms and it could be good or bad depending on the situation.
But, back to the open mandate situation; it’s better to go with one agent that you fully trust, has your back, and has one goal in mind – to sell your property.
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