This issue is especially pressing in Portugal, as the real estate market is not sufficiently regulated and listings by multiple agents are habitual. In other words: when you look for properties in Portugal you will scarcely find any exclusive listings, but rather the same properties being sold by different real estate agencies at the same time.
Contrary to popular belief, increasing the number of properties listed for sale in various real estate agencies does not increase the amount of contact with genuine buyers. In reality, the same buyers will see the property presented numerous times, removing any sense of exclusivity. And exclusivity is by definition one of the distinguishing features of buying a luxury item, whether a car, a watch or a villa. Rarity is indeed the best motivation.
Therefore, luxury real estate, particularly in the Algarve, is increasingly being marketed through a sole agent sales mandate. A system that has been universally embraced in the Anglo-Saxon countries, yet is still not much heard of in Portugal.
Once a sole mandate is accepted, the real estate agent will go above and beyond to find a buyer, especially in terms of communication and sourcing properties. This means that the buyer will receive really quite special attention and high-quality documentation, prepared in an efficient and professional way and a pristine collaboration with a legal advisor, an architect, and the notary.
The sole mandate is also a guarantee of a relaxed purchase for the buyer. Indeed, by using only one intermediary (the agent with the mandate), it ensures that the seller will closely examine the offer.
This happens because the real estate agent, who is fully aware of the seller’s expectations and the acceptable margin of negotiation, will focus on presenting the property only to purchasers who truly have the capacity and desire to make a compelling offer.
As a result of the loyalty and trust with the owner, the exclusive agent is a more efficient interlocutor than a simple agent. Serving as a “negotiator” and booster of the sale.
Obviously, for it to be a successful project, the exclusive mandate must be given to the agency with the best knowledge of the sector and the expertise for that particular type of property.
