Off-Market - the Good and the Bad
What is an off market property?
We break this down into a few categories:
True off market – this is a property that will never been marketed on any website, not professional photos or a floor plan. The owner wants this sold either directly without a selling agent or with a selling agent but no public information.
Agent off market - this is where the property is marketed by a selling agent but only on their website, through their database or via phone calls. Marketing material have been produced and publicly shared but there is not paid marketing on Domain.com.au or Realestate.com.au.
Pre market off market - Accessing a property that is planning to go on public websites but we get access prior to it being made publicly available. This may be a day, a week or months before the property is listed on the main website. Get the jump on the competition and be prepped before there is competition.
Why would someone sell their property off-market?
There are so many varying reasons why property owners sell off-market and do not advertise. The rationale?
Maintain privacy- Perhaps the owner is getting divorced or a CEO of a public listed company or a famous (or infamous) personality. They may want to keep the sale private from neighbours or family/friends. BuyEast have inspected homes where their artwork is worth more than the house and they don’t anyone coming through unless they are qualified.
Test the waters- Sometimes a vendor doesn’t want to sit on the market for too long. By offering the property off-market they can test the market and see where the interest lies and see if the value of their place in the market is correct. We are seeing quite a bit of this at the moment with sellers expectations are well above the market value and they are trying to get a sense if it is achievable. Often they will then decide if they will publicly list for sale now or later down the track.
Creates a sense of being exclusive. Being off-market can excite buyers and buyers agents as it seem special and unique. Just make sure you check comparable and don’t overpay just because it’s off-market!
Timing - In a hot market selling and buying can be very time sensitive. Sometimes a seller has purchased a property and wants to sell quickly so they can buy and sell in the same market reducing risk and concern. They don’t want to waste time with a marketing campaign and they just want the best seller they can as quickly as possible.
Make me move price! Sometimes an owner can get a knock on the door from a buyer or buyers agent and they will suggest what we call a “Make Me Move Price”. This can be over market value but perhaps the buyer is desperate for this property and willing to pay big money for it. This can be a direct off-market sale.
There are many more reasons we have seen over the years for off-market properties. Just remember because it is off-market it may not be good value, so do your research and know your market, also ensure your buyers agent is not only rewarded by pushing you into an off market(premarket) purchase just so they can achieve a commission (or a higher commission).