In the real estate business, it is standard procedure to ask homeowners who are about to list their property for sale whether they would like to sign an exclusive mandate agreement.

In nine times out of 10, this offer is rejected as people are still reluctant to put their property in the hands of one single agency.

Unfortunately, in the local market, people are yet to understand the full benefits of exclusive listing, and how this can improve the entire selling process, and ultimately the value.

In large, foreign real estate markets where the industry is more structured, directive and regulated, the success rate of agencies selling sole agent properties is close to the 90 per cent mark. This is encouraging agencies, including our foreign partners, to discard general mandates, and fully focus on exclusive agency agreements.

The advantages of exclusive mandates are so apparent that even in smaller markets like Malta, agencies and sellers can both enjoy the benefits of exclusive listings.

Agents will never pour money in a property if this can be sold by others

I would like to share with you the advantages of having an exclusive agent dealing with the sale of your property.

In a small property market with a large percentage of residential stock for sale, an exclusive agency agreement helps agents to focus on fewer properties, and therefore they don’t have to run frantically to pick up sales from everywhere.

Time is an important factor when trying to sell a home, especially if this is holding the owner back from buying a new house, or if tax benefit schemes are fast approaching their expiry date.

Exclusive agency agreements are signed for a certain period, and therefore agents are pressured to sell the property before the agreement ends.

Since agents are dealing with all potential buyers, they can keep track of bids and honestly advise buyers when offers are less likely to be accepted. This is also important for sellers to secure the highest possible price since other agents cannot rush them into quickly accepting an offer.

An exclusive agency agreement definitely makes life easier for the seller. Dealing with multiple agencies can be a headache to organise appointments, and welcoming different agents who are all willing to get their viewers in first. Also, from a security point of view, it is safer to give one set of keys, and have limited viewings. Ultimately all you need is one buyer.

A general mandate often has a damaging effect on the price of a property. In a way this is similar to buying common daily goods, which are available from different stores.

In any industry, fluctuations in the price are the consequences of strong competition. The product uniqueness that only comes about with exclusive agreements helps preserve the price and value of the property.

Finally, the marketing budget set for exclusive properties is three to four times higher than that of a general mandate property. Agents will never pour money in a property if this can be sold by others.

I believe the time is upon us for sellers to plan their sale strategy more carefully, and question more the tools available to them by agencies that are continuously spending fortunes to improve their work force, marketing, and other resources.

The level of service provided today by local agencies has bridged the gap with the international standard, mainly due to the fact that many world-renowned brands are putting their trust in our country. Sellers can ensure a premium service when working with a local agency that enjoys an international reputation and global network of partners.

Mark Trapani is marketing executive at Engel & Völkers Sara Grech.

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