In the vast world of real estate, mandates serve as crucial agreements that define the relationship between real estate developers and their partners. Understanding the different types of mandates in real estate is essential for developers and industry professionals.
TYPES OF MANDATES IN REAL ESTATE :
Exclusive Mandate:
An exclusive mandate is an agreement in which a real estate developer grants exclusive rights to a specific channel partner or agency to market, promote, and sell their properties. The exclusive mandate offers focused marketing efforts and increased dedication from the partner, often resulting in higher commission rates.
Non-Exclusive Mandate:
A non-exclusive mandate allows a developer to engage multiple channel partners or agencies simultaneously. Each partner has the authority to promote and sell the developer’s properties, targeting different markets and expanding the reach of the properties.
KEY BENEFITS AND CONSIDERATIONS TO REAL ESTATE DEVELOPERS
No Need for Manpower Recruitment:
By entering into a mandate agreement, developers can eliminate the need for recruiting and managing an in-house sales team. The partner agent or agency already has a dedicated salesforce in place, saving developers the time, effort, and costs associated with hiring, training, and managing sales personnel. This allows developers to focus on their core competencies, such as project development and construction, while relying on the partner’s existing sales team.
Elimination of Expenses:
Mandates can help developers reduce various expenses associated with sales operations. With a partner agent or agency handling the sales and marketing activities, developers can save on costs related to setting up and maintaining their own sales infrastructure, including office space, utilities, and equipment. This cost-saving benefit allows developers to allocate their financial resources more efficiently and invest in other areas of their business.
Removal of Accounting and HR Responsibilities:
By partnering with an agent or agency under a mandate, developers can offload the accounting and HR responsibilities related to sales operations. The partner takes care of tasks such as payroll, benefits administration, and commission management. This relieves developers from the administrative burden of managing payroll and employee-related matters, allowing them to focus on strategic aspects of their business.
Leveraging Expertise:
Partnering with an experienced agent or agency under a mandate provides developers with the opportunity to leverage their expertise. These partners have a deep understanding of the real estate market, sales techniques, and marketing strategies. By tapping into their knowledge and experience, developers can benefit from effective sales strategies, market insights, and customer targeting strategies.
WHILE MANDATES OFFER NUMEROUS ADVANTAGES, DEVELOPERS SHOULD CAREFULLY CONSIDER THE FOLLOWING:
Selection of Channel Partners:
Choosing the right channel partners is critical. Developers should evaluate their track record, reputation, market reach, and sales capabilities before entering into a mandate agreement. A well-aligned partnership can significantly enhance sales outcomes.
Clear Communication and Agreement Terms:
Developers must clearly communicate their expectations, target markets, commission structure, and performance metrics to channel partners. The agreement should outline the responsibilities, timelines, and deliverables to ensure a transparent and mutually beneficial partnership.Developers can benefit from the expertise, market knowledge, and sales networks of channel partners, leading to successful property sales and business growth. Take the next step towards unlocking new opportunities and reaching your goals by partnering with Qubic Properties – A leading Real Estate advisory organization today.