Mistakes to Avoid When Delegating Mandates Between Agencies

Mistakes to Avoid When Delegating Mandates Between Agencies

Delegating mandates between real estate agencies presents an opportunity to develop fruitful partnerships, but it also comes with its share of challenges. When poorly managed, this collaboration can lead to costly mistakes, jeopardizing the success of the project and client satisfaction. In this article, we will identify the most common errors that agencies must avoid to ensure smooth management and optimal results. Whether you are the delegating or delegating agency, these errors can significantly impact the quality of your service and your professional relationships.

1. Lack of transparent communication

Communication is one of the fundamental pillars of successful collaboration. When delegating a mandate, agencies must regularly exchange information on the progress of visits, client feedback, offers received, and negotiations .

A common mistake : Failing to communicate regularly or transparently. Some agencies believe their partners can guess the progress of actions or don't see the point in communicating at each stage of the process. This can lead to misunderstandings, delays, and inefficiencies in asset management.

Solution : Ensure smooth and regular communication. Use collaborative tools and tracking systems to update all relevant property and prospect information in real time. Consider establishing a communication schedule with weekly or bi-weekly check-ins.

2. Neglecting roles and responsibilities

One of the major mistakes in delegating a mandate is failing to clearly define the roles and responsibilities of each agency from the outset of the collaboration. This can create ambiguities, overlapping tasks, and even conflicts over who is responsible for what.

A common mistake : Agencies don't take the time to clarify what they expect from each other. For example, the delegated agency might take on aspects it doesn't understand or shouldn't be doing, while the delegating agency might neglect to oversee the implementation of the mandate.

Solution : Establish a clear contract that defines each party's responsibilities. Each agency needs to know what it's supposed to do at every stage of the process, whether it's marketing, negotiation, or customer follow-up. Clear roles allow for better management of the collaboration and avoid any confusion.

3. Forgetting to formalize the agreement in writing

Although delegating authority is a common practice, it is essential to formalize the agreement in writing to avoid any ambiguity in case of disagreement. Some agencies neglect this step and rely solely on a verbal agreement, which can lead to misunderstandings and conflicts.

A common mistake : The absence of a written contract or a contract that is too vague. Without a clear legal framework, it becomes difficult to enforce each party's commitments, particularly regarding the allocation of fees or the scheduling of viewings.

Solution : Draft a detailed contract that stipulates the terms of the collaboration: each agency's obligations, communication expectations, commission sharing, and, if applicable, the duration of the agreement. This document must be signed by both agencies before commencing any collaboration to secure the professional relationship.

4. Poor management of fees and commissions

One of the most sensitive issues in a delegated mandate concerns the allocation of fees . Poor management of this allocation can damage the relationship between the agencies and lead to unnecessary tensions.

A common mistake is failing to clearly define how the fees will be shared. This can lead to disputes when selling or renting the property, especially if both agencies believe they played a key role in the success of the transaction.

Solution : Define in advance, explicitly and transparently, how the fees will be divided between the agencies. This could be a fixed percentage, a split based on the tasks performed, or according to the role played in closing the deal. Ensure that all parties agree and that this is included in the agency agreement.

5. Ignoring the specific characteristics of the property

When delegating a mandate, each property is unique. It is important to fully understand the characteristics of the property being sold or rented in order to better target potential buyers or tenants.

A common mistake : Failing to adequately inform the delegated agency about the specifics of the property (type of property, estimated value, condition, etc.). This could prevent the delegated agency from adopting the right approach to promote the property or from targeting the right prospects.

Solution : Ensure you provide the delegated agency with all the necessary information about the property. This includes high-quality photos, details on specific features, and the property's history, so that the delegated agency can effectively promote it and accurately respond to the inquiries of potential buyers.

6. Neglecting the relationship with the landlord

The relationship with the property owner is central to any delegation of authority. Failing to keep the owner informed of the progress of the sale or rental can jeopardize the collaboration.

Common mistake : The delegating agency does not put the owner in contact with the delegated agency or does not regularly communicate information on the progress of the transaction.

Solution : Maintain open communication with the owner. Even if the delegated agency conducts viewings and negotiates offers, the delegating agency must keep the owner informed about viewings, buyer feedback, and offers received. This will strengthen the owner's trust in the agency and ensure a smooth working relationship.

7. Underestimating the importance of monitoring

Monitoring component of delegated authority. Once the mandate is delegated to another agency, it is easy to become complacent and neglect monitoring the actions taken.

A common mistake : Failing to regularly monitor the actions of the delegated agency. If the delegating agency doesn't verify that the actions are being carried out correctly, this can lead to unsatisfactory results and a slower or less profitable sale.

Solution : Ensure you regularly monitor the progress of the delegated mandate. This includes checking online listings, managing visits, and communicating with prospects. If necessary, adjust your strategies or sales approach to maximize the chances of success.

8. Do not anticipate the termination of the mandate

It is possible for a contract to be terminated during the course of the collaboration. Ignoring this possibility or failing to plan for the termination process is a common mistake.

A common mistake : Failing to include termination clauses in the contract. If the collaboration is to end, it's important to know how this should happen, what the financial consequences are, and what the obligations of each party are.

Solution : Include a termination clause in the agency agreement, stipulating the conditions and procedures for termination, as well as the consequences for fees and commissions. This helps avoid disagreements in the event of a breach of contract.

In summary, to ensure a successful delegation of mandate, it is essential to avoid certain common mistakes that can compromise the quality of the collaboration between agencies. Regular and transparent communication, formalizing the agreement, clear fee management, and a relationship of trust with the property owner are key elements for the smooth management of the assignment. By paying attention to these aspects, agencies can maximize their chances of success and offer a high-quality experience to their clients.