A competitive mandate is effectively an open mandate whereby:
– All practitioners may work on the property—that is, it is not exclusive to one agency or network.
– The seller typically has a net price, and practitioners add their commission on top of that to obtain a market price.
– The agent has no obligation to the seller regarding marketing or advertising the property.
– The seller may sell the property privately.
– The seller will typically negotiate a lower commission rate with the agent.
There is always potential to convert these mandates into sole mandates, provided we have a good competitive advantage.