The Pros and Cons of off-market property sale

Thu, 15 Apr 2021

The Pros and Cons of off-market property sale What are off Market Properties?
An off-market property is for sale, but it is not marketed or advertised via traditional channels such as real estate marketing campaigns. Instead, it has an agent contacting buyers directly from their database or from people who have gotten in touch with a view to buying in the area. Now let’s look at the pros and cons of selling off-market, and what this could mean for your sale.

Pros of off-market property sales
For Sellers

  • Can test the market out, to see if the pricing point is correct: 

Determining that it measures up to market value. The advantage to this approach is that if your price is too high and you’re not generating much buyer interest, you can stop the private listing, and move on without anyone knowing the price change and that the property had already been on the market.

  •  You can maintain your privacy:

Gives you a sense of security about your belongings and possessions, as only a small number of people are going to be viewing your home.  

  • A quick way to sell
An off-market property is often done and dusted quickly compared to a conventional sale 
  • Potential savings
Having the potential to save on advertising, your time and effort in getting your house ready for sale. In some cases, an off-market listing could sell as is, so you wouldn’t have to go through the process of possibly painting or de-cluttering and all the efforts involved in preparing for an open home. 

For Buyers
  • There is an opportunity to get a bargain:
Purchasing off-market properties can help buyers avoid competition-driven price inflation often seen in the open market, meaning they can get a better deal. Without the pressure of possibly losing the place to someone else, the buyer can make a sensible, considered decision that is best in line with their needs and budget.
  • More likely the vendor will accept your offer: 
If the initially submitted offer is below market value and the vendor is in a distressed position, which is often the case, there is greater potential for the deal to be accepted. 

Cons of off-market property sales
For Sellers
  • Limited exposure:
Not being able to leverage the mass market of online buyers who regularly surf for investment or owner-occupied properties. 
  • Risk of not getting top dollar:
This is the most obvious and costly disadvantage of selling off-market, sellers might not get the maximum price possible. This is because they aren’t testing the property on the open market and creating competition among buyers. 
  • Difficulty in judging buyer seriousness:
It can be hard to gauge the sincerity of potential buyers with off the market deals. 

For Buyers
  • Limited options to choose from: 
There isn’t a huge selection of properties to choose from if they strictly want to purchase off-market, as in some cases it isn’t the most preferred option for sellers, which may limit buyer’s options. 
  • Need connections:
The first step to a successful off-market purchase is signing up to the right newsletters and connecting with the right agents as without this you’re unlikely to hear about any off-market opportunities. 

Interested in knowing more about off-market sales? Contact us to learn how we can help you get the best price for your property or help you find your dream property!