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GENERAL ASSESSMENT: PROPERTY SALE ACCESSIBLE TO FOREIGNERS (IRS, RES & PDS)
What are the particularities of
the Mauritian real estate market
regarding property mandates?
Mauritius is what we call a “buyer’s
market”, meaning that it is the buyer
who dictates it. The latter benefits from
a wide range of choice, thus increasing
pressure on the prices. This specificity
comes into play, for instance, in the case
of residences on offer to foreigners,
with the increase of products now
available through different acquisition
schemes (from IRS to SCS). As agents,
we must adapt and we are committed
to proposing the right asset at the right
price to purchasers. This trend makes
it more convenient for sellers to opt
for multiple mandates as they feel that
this would make their property known
to the maximum number of people.
Indeed, we can see that sellers
(property developers or private
customers) often prefer to have
several real estate agencies, finding
it more efficient. Is it the case?
It is true that many sellers share this
point of view. At Mauritius Sotheby’s
International Realty, we think that
having multiple agencies involved
in the process of selling a property
can lead to having a bigger — but
definitely not better presence on the
market. The property is certainly made
more visible, but this overexposure
conveys a message of urgency which
is somewhat negative. Moreover, the
information — the displayed price, the
sale pitch, the shooting perspectives
— often varies from one agency to the
next, and thus lessens the chances of
having a good marketing strategy and
at the same time confuses potential
buyers. This technique is also more
demanding for the seller, as he/she
needs to interact with several persons.
It therefore becomes more tedious to
upgrade his or her asset’s positioning
on the market as well as adapting
the marketing strategy. On the other
hand, opting for an exclusive mandate
means that the agency believes in
the product and will leverage the
necessary actions to sell the property.
Why do real estate agencies favour
exclusivity?
A real estate agency signing an
exclusive sale mandate shows a
higher level of commitment to the
sale of the property, as this makes
it possible for the agency to secure
its commission and take less risks
regarding its level of commitment.
When an agency is in charge of the
commercial and marketing strategy
from A to Z, it can provide full expertise
in terms of platforms and tools used,
marketing and price positioning, as
well as advice Furthermore, thanks
to our experience, we have also
understood that it creates a real
partnership between the seller and
the agency. Other than offering a more
fluid discussion with regular progress
updates, the agency also works hand
in hand with its client to fix a fair price.
When the price is in line with the real
value of the property on the market,
and there is no other agency proposing
a different price, it can only facilitate
the interaction between the buyer and
the agency.
What are the requirements when
signing an exclusive contract?
The terms for the seller are as follows:
the client commits not to bypass the
agency by selling the property directly
or through a competing real estate
agency; he/she must consent to the
sale at the price set by the mandate,
and he/she (as well as the agency)
cannot terminate the mandate before
the end of the contract. The duration
of the exclusive mandate is, of course,
negotiable, and is decided through an
agreement between the two parties
involved. By signing an exclusive
mandate, the agency is bound to
establish concrete actions, such as
the implementation of a marketing
strategy to make the client’s product
visible, and set up a regular reporting
schedule.
How do potential buyers view the
exclusive mandate?
Purchasers are often under the
impression that, with an exclusive
mandate, there will be less room for
negotiation. This is true to a certain
extent, but it is also important for them
to understand the reasons why this is
so and the heart of the matter: when
signing an exclusive mandate, the
agency will make use of its know-how
and understanding of the market to
guide the seller towards a fair price.
On the other hand, in the case of a
simple mandate, the seller himself
determines the selling price and often
has the tendency to assign it a higher
worth so that the price becomes way
higher than its actual value on the
market. Consequently, there will be
more room for negotiation, but with
almost the same outcome in the end!
Do you, at Mauritius Sotheby’s
International Realty, work solely
Mauritius Sotheby’s International Realty Contact p.290
“BY SIGNING
AN EXCLUSIVE
MANDATE, THE
AGENCY IS BOUND
TO ESTABLISH
CONCRETE
ACTIONS.”
on exclusive mandates?
We work on both types of mandates.
The nature of the Mauritian market
has made it necessary for us to
adapt Sotheby’s International Realty’s
strategy to the local context, but
we most definitely favour exclusive
mandates.
We
accompany
our
exclusive mandates clients on a more
qualitative level: we guide them in
the elaboration of a clear sales and
marketing strategy; we give them
expert advice on price positioning,
and we provide them with detailed
reports all throughout the sales
process Not to forget the property’s
unequalled exposure through all of our
communication tools and channels.
What are your biggest assets to
convince your clients to choose
this mandate? What advantages to
you offer?
Being the exclusive real estate agency
working on prestigious property
developments such as La Balise
Marina and Heritage Villas Valriche,
we carefully choose and evaluate
the properties which we sell. In this
search for quality, we design efficient
and proven sales strategies for
our clients. Our different packages
come with various advantages such
as property valuation made by a
professional appraiser; a marketing
plan including both digital and print
tools; a professional photo shoot
of the property; video editing (360°
visit); exposure on our website, on
Sotheby’s
International
Realty’s
partners’ websites and on paid
and targeted websites; individual
e-mailings to our database; a monthly
report and many more advantages
defined in collaboration with our
client-seller.
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