Property Mandates – A Must for the Indian Real Estate Sector

If you are looking to Buy / Sell / Rent a Property – Do it through a Property Mandate!

A mandate is an agreement between a Seller/Buyer/Home Seeker and the Real Estate Agent(s) regarding finding or marketing of a property, seeking potential buyers / sellers / tenants or landlords and completing the necessary paper work and legal formalities.

Giving a Property Mandate would serve several advantages to you while it will also maintain a customer loyalty factor for your agent. A few advantages of carrying out a Real Estate Transaction by issuing a Mandate are: -

1.    High Motivation for the Agent

As only one agent is given responsibility to transact your property his/her reputation, and that of his agency will be on the line, so he/she will likely be highly motivated to go the extra mile and achieve results.

2.    More Advertising and Marketing by the Agent

The agent in the same way, will feel obliged and probably will spend three or four times the usual budget on advertising your inventory / requirement on various platforms.

3.    Quick Result and More Transparency

If the property or requirement is correctly priced, the transaction takes place quicker than those of properties without a mandate. It is also easier for the potential buyer / seller / landlord to develop trust as the mandated agent has a sense of loyalty from you and hence would be patient and transparent with your demands and expectations. In numerous cases, transactions do not mature due to untrue information provided by real estate agents about the property.

4.    No Price War – The biggest reason for transaction failure

With mandates, a single selling price is agreed at the outset and there is no chance of rival agents starting a price war. Mandates encourage buyers to compete on price and do not give a chance to other agents to spoil the property’s price in the market. Sellers often suffer due to lower false pricing projected by various realtors on real estate platforms of a property for sale.

5.    Transparent Commission

A mandate clearly defines the commission that will be charged by the real estate agent for particular transaction. This is highly advantageous as you know exactly what you would be paying as the agent’s service fee post completion of the transaction.

Keeping all the above points in mind, I highly recommend you to only transact real estate with professional and licensed real estate agents through signing a property mandate with them.

Author: Akash Anand, VP - SquareYards