Do you want to get your commercial or industrial property sold or leased? Appoint a broker on a sole mandate! There is a solid business case to do this.
You will need to carefully choose the broker and make sure he is on top of his game in the market your property is situated. Likewise the broker needs to make sure the property is priced right and will sell or be let. With a sole mandate, there is is an obligation on the broker to spend money and perform, so there is no point taking on an overpriced property that nobody will be interested in.
- Why appoint a sole agent or broker?
- No broker will invest maximum time, money or effort on a property that may be sold or leased by someone else.
- Most landlords and sellers have businesses to run. It is far more convenient to be dealing with one reputable broker, than have to be bothered by information requests from many brokers who most often, have no serious tenant or buyer in mind.
- One proper, legal signboard. Too many signboards makes the property appear desperate.
- Regular reports. Most brokers do not bother to give feedback after showing a property. Proper feedback will assist the seller or landlord in his negotiations.
- Liability for double commission. If two brokers introduce the same buyer or tenant , it is possible that the seller or landlord can be liable to pay two commissions.
- Brokers have access to the same pool of tenants and buyers, so you are not reducing your chances of selling or letting your property, if you appoint a sole broker.
A sole mandate will usually include other active and reputable brokers on a commission sharing basis; the sole broker fields all enquiries.
It is important to manage information going to the market. A a good broker will compile extensive information packs which will assist in getting the best price. The wrong information can be extremely counter productive.
Residential estate agents rarely work without a sole mandate. In the major centres of the world, commercial and industrial property brokers only work on sole mandates.The reason for this? it Works! A broker should never work on a property without some form of mandate.
Always ask what other sole mandates the broker has. Even the best broker can only handle a few sole mandates at once. It is important for the broker to present a comprehensive marketing plan as part of a listing presentation, tailormade for the property before one considers granting a sole mandate.
Guy de la Porte (GDP) is an independent industrial property broker who has been specialising in the large industrial property, factory and warehouse market, in the major, central Cape Town Industrial areas of Cape Town for over 29 years: Airport Industria, Beaconvale, Epping, Maitland, Montague Gardens, Ndabeni, Paarden Eiland and Parow Industria.