Common term in the real estate sector, the mandate is a debatable subject among real estate stakeholders: if property owners in Mauritius often opt for the simple (non-exclusive) mandate, real estate agencies recommend opting for the exclusive one.
But what does HORIZON Properties, manager of exceptional properties in Mauritius, suggest?
If most owners in Mauritius opt for the non-exclusive mandate and share their properties with several real estate agencies, then what would be the advantages of giving the exclusivity to a property manager? HORIZON Properties elaborates on this subject.
What is the exclusive mandate and the simple (non-exclusive) mandate?
I) The exclusive mandate
The exclusive mandate is a contract that binds you as an owner to a real estate agency, giving it the exclusive right to sell or rent your property. Thus, the agency to which you give the exclusivity will be the only one, according to the duration of the contract, allowed to distribute and make the transaction of your property.
It is certain that we observe a higher level of commitment with real estate agencies that have signed an exclusive mandate for the rental or sale of a property. Indeed, this exclusivity not only ensures that the agency will not be overtaken by another competing agency but also proves the trust of its client-owner.
Logical outcome: the agency increases its motivation and invests in quality marketing actions to conclude the sale or rental of the property, without wasting its energy on what its competitors are doing on the same property. In fact, the agency's motivation to succeed in the transaction will have a positive impact on its success.
Opting for the marketing of your property through a single agency allows a better control of supply and demand and thus, brings interest and coherence in the eyes of potential customers.
Finally, sometimes, the rareness and strategic positioning of your beachfront or waterfront property are more effective than a multi-agency distribution, where the information and photos featuring your property often lack homogeneity and consistency.
II) The simple or non-exclusive mandate
In comparison, the simple mandate leads you to share the marketing of your property to several agencies, allowing your unit to gain, at first sight, in visibility. Clearly, and in most cases, the real estate agencies add their respective advertisements on only one and same online portal, L’Express Property - a staple of the real estate market in Mauritius.
So what's in it for you, as an owner? It is double-edged: on one hand, you would be maximising the visibility of your unit and giving it a nice exposure by multiplying the ads, but potential buyers or renters may interpret this phenomenon as a difficulty to complete your transaction.
Moreover, by multiplying the number of agencies involved, agencies will tend to defend the interests of potential buyers or tenants, in order to complete the transaction before their competitors. This implies another phenomenon: the overvaluation of your property. In a matter of fact, by mandating a real estate agency in non-exclusivity, your property can be presented at different prices on the same referencing sites (due to the different fees of the agencies), encouraging the negotiations and thus, the depreciation of your property.
From an Owner's point of view, we can conclude that the main drawback of the simple mandate is the overvaluation and/or the overexposure of your property, resulting in a "trivialisation" - whereas on the contrary, it would be necessary to create more scarcity and exclusivity around it to maximise the appetence and the curiosity of potential customers.
The exclusive mandate with HORIZON Properties
I) HORIZON Properties is a property manager - not a real estate agency
HORIZON Properties is a property manager specialised in high-end beachfront properties on the West and North of Mauritius. We manage the assets of our Owners and assist them in the distribution of their properties they wish to rent (on short, medium or long term) to optimize their income generation and thus maximize the potential of their unit.
Our teams represent properties’ Owners and their interests: compared to real estate agencies, we do not make direct sales or rentals. This implies that you, as an Owner, remain at the center of our services and your satisfaction is our ultimate goal. Wondering how we would rent or sell your property? Well, in order to generate demand and complete transactions, HORIZON Properties works along with a selection of partnered agencies, which will help us find you a tenant or a buyer.
"We manage our Owners' properties as if they were our own and defend their interests; both during distribution - for rent or for resale - and during negotiations with our partner agencies who defend the interests of their buyer or renter clients", says Pierre-Yves Maria, Sales Director of HORIZON Properties.
II) How does the exclusive mandate with HORIZON Properties works?
The principle of prioritisation once an Owner signs an exclusive mandate is the same at HORIZON Properties as it is with a real estate agency. Our team implements all the marketing and commercial tasks to proceed with the sale or rental of your property, as quickly as possible and at the best possible price, since it is our only concern.
To give the exclusivity to HORIZON Properties would mean not only delegating the distribution of your property according to your needs, but also taking advantage of the best strategies to optimise its good positioning during its commercialisation, and benefitting from an important strike force through our partner agencies.
Finally, working today with a network of partner agencies for the sale but also the short, medium and long term rentals of your unit, HORIZON Properties ensures the marketing of your property whatever your needs are.
Thus, and to your advantage, the exclusive mandate guarantees you an optimal distribution and marketing of your unit in the long run.
III) The advantages of signing an exclusive mandate with HORIZON Properties
One contact: the exclusive mandate with HORIZON Properties allows you to have only one contact person, facilitating the process especially when the marketing of your property is done through several agencies.
HORIZON Properties takes care of organising all the visits, answering questions from potential buyers and renters, and offering a global and genuine analysis of all purchase or rental offers. Indeed, if agencies sometimes defend the interests of sellers/renters as well as the interests of buyers/renters, HORIZON Properties only defends the interest of its Owners, that is to say yours.
Finally, and based on a marketing strategy established with the owners upstream, HORIZON Properties ensures the sharing of properties with one or more partner agencies, which then ensures the marketing of your property with their customers-buyers or tenants.
Finally, the principle of remuneration applied remains standard with what is traditionally applied on the market.
For a RESALE: 2% + VAT commission on the owner's side / 2% + VAT on the buyer's side
For a RENT: 1 month + VAT owner / 1 month + VAT tenant
Takeaways
Beachfront and waterfront property owners who are currently looking for professionals to manage and distribute your property, here are the takeaways of this article:
HORIZON Properties is not a real estate agency. By signing the exclusive mandate with HORIZON Properties, we commit ourselves to defend your interests as an owner and to implement all the necessary actions with our network of partnered real estate agencies, to complete the sale or rental of your property, as soon as possible.
You don't have any visit or key management to do, HORIZON Properties takes care of it for you.
The distribution of your property is not limited to a single agency when you sign an exclusive mandate with HORIZON: following our market analysis, we determine together the best distribution strategy for your property: with one agency or several agencies depending on the market and its reality.
You have only one contact person: regardless of the agencies that manage the marketing of your property, HORIZON Properties remains your sole contact
For more information, please fill in this contact form or call Pierre-Yves on (+230) 5 256 36 91.