We've all heard about them but what are they, what's the advantages and how do you find them?
Off-market properties are properties that are for sale without being advertised to the general public. They are not listed on the usual real estate website portals and they don’t have regular “open for inspections”. This limits the number of buyers which can reduce the competition for that property.
So Why Do People Sell Off-Market?
People sell off-market for many reasons but the main reason we see is to reduce the stress of the process. This means they don't have normal open homes with large groups of people coming through, save on marketing costs and sales agent's fees.
How Do You Find Them?
The easiest way is to seek out a Buyers Agent in the area you want to buy. A Buyers Agent will go out and find you a suitable property or investment with the advantage of established industry contacts and a wealth of market knowledge and negotiation tactics. They will also help match the seller's price expectations in line with the market. Just because it's off-market doesn't mean it's any good!
Obviously, a Buyers Agent comes at a cost but if you are confident in your market knowledge and have time then you can do it yourself. Before starting though it's important to highlight and write down your wish list (Location, type of property, budget, beds, bath, car, etc) and organise your finance pre-approval upfront. Once you find somewhere you need to be able to act quickly and be confident you can afford it.
It's then a case of talking to all the agents who operate in the area you want to buy every 1-2 weeks to see if they have anything. Agents can be very busy so it's best practice to go through their open homes to meet them in person and show you are a serious buyer. This will also help you get a better understanding of market prices and what's available in the area.
If you don't want to deal with Sales Agents then you can door knock and letter drop in the areas you're interested in to try and deal with the property owner directly.
Pro's buying Off-Market
Less buyer competition and less chance to get outbid
More time to negotiate on price and sales conditions/clauses
Chance to secure under market value
Reduced stress with the whole transaction
Con's buying Off-Market
Time and effort to find them
Limited property selection to choose from
Finding genuine sellers whose price expectations fall in line with the market
Upfront cost to use a Buyer Agent
If you are thinking of buying or selling off-market and would like some help to get started contact us today.