March 2016 – Silent listings: how to buy off market property
Date Posted: Mar, 2016
By Rich Harvey, Managing Director propertybuyer
Have you ever wondered how to access off-market properties and are they all they are cracked up to be? Discover the pros and cons of silent listings and how to evaluate them. We’ve also got our next live seminar on Tuesday 22 March looking at How to Capitalise on Sydney’s Infrastructure boom. I’m also doing a long walk to raise money for Kids with Cancer – see all the details and more below!
This March update includes:
1. Silent listings: how to buy off market property
2. Seminar – ‘How to capitalise on Sydney’s infrastructure boom’
3. Community sponsorship – Walk for kids with cancer
1. Silent listings: how to buy off market property
When you look at an iceberg remember there is almost two-thirds of the lump under water. For off market listings the ratio is not quite the same, but in the higher price ranges up to 50% of properties for sale can be off market
During your property search you may have heard of the phrase “off market”. This is where a vendor has decided to sell their property without the traditional marketing and public advertising. While it is certainly an attractive way to buy property, there are plenty of traps for the uninitiated. Off market does not necessarily mean discount, cheaper, easier or perfect – it may simply mean a pre-market listing or pre-auction where a vendor wants to test the market first to see what offers they can get before committing to a full campaign.
Why would a vendor sell off market?
One the primary reasons a vendor may sell off market is for privacy and discretion. Many celebrity or high profile owners don’t like to have their home open to the public each week and value their privacy highly.
Some vendors do not want the hassle of preparing the house for sale, getting that enormous list of defects fixed up, tidying up each week for the open house inspections and doing a full blown marketing campaign for $20,000.
For others it may be a relationship breakdown, job change, family issues or financial trouble and need a quick and discrete sale.
Why buy off market?
* Buying off market can be a useful way to get access to more properties
* There’s less competition from other buyers – if the owner is a genuine seller and reasonably motivated, they are more likely to entertain offers and negotiate
* As well as price, you may be able to negotiate more favourable settlement terms
* In most cases vendors will be reluctant to sell below market value and feel they haven’t “tested the market” – hence they need educating more
* Without public advertising the vendor may take more time whether to decide to sell (they are not constrained to make a decision with a 4 week auction campaign)
* Vendor expectations can be harder to manage for agents if they require anonymity
Just because a property is labelled “off market” does not automatically make it a hot property. As an astute buyer you need to compare on market to off market properties and accurately assess the value. Don’t get led down the garden path by an agent saying it is an off market deal when in fact it was a failed auction campaign or some vendor just testing the market for premium offers.
How do you find off market properties?
It has been said that your “net worth is a measure of your network”. When it comes to buying property off market, it is the strength of your relationships with agents that will determine success. Most home buyers or investors typically deal with agents on a singular transaction and may not deal with them again for 7 to 10 years or longer (or ever). As buyers agents we have a deep and established network of sales agents that we deal with on a daily basis. We treat agents with the utmost respect and as a “supplier” for our clients. As we are seen as repeat buyers we have built some excellent relationships with thousands of agents across Sydney and beyond.
We get weekly calls and emails from agents with advanced notice of off market opportunities. We are also proactive in generating off market transactions as we send buyer requests to our vast network of agents.
In the last month around 30% of our transactions we completed were off market properties. So you have to be in the know to get access to this side of the hidden property market.
Since we are always on the hunt for investment grade properties and high quality homes, agents get to know our preferences. We’ve got a host of testimonials for clients where we secured off market properties in high demand suburbs of Bronte, Freshwater, Killara, Potts Point, Vaucluse, Camperdown, Balmain, Surry Hills, Mosman, Balmoral, Cremorne and many more. We have also assisted many high profile clients but of course we can’t tell you details about that as mum’s the word!
If you are looking for a leg up with your property search we would love to assist you. Please call my friendly team of professional buyers’ agents on 1300 655 615 or email your wishlist to discuss your requirements today. We’d love to help.
Rich Harvey is founder and Managing Director of www.propertybuyer.com.au, Australia’s most awarded Buyers’ Advocates. Propertybuyer helps property investors and home buyers search and negotiate the right property at the right price, everytime. Visit www.propertybuyer.com.au or call 1300 655 615.
2. Seminar -How to Capitalise on Sydney’s Infrastructure Boom
Tuesday 22nd March, 7-9pm
Wesley Centre, Sydney
Sydney is a city on the move and undergoing a wave of impressive infrastructure projects.
Our next seminar for 2016 looks at the ways that property investors and home buyers can take advantage of the current and proposed transport projects new roads, heavy rail, light rail, hospitals, schools and other capital works are transforming the Sydney landscape right now.
New road and rail projects can provide a big boost to specific suburbs. Despite the recent boom conditions in Sydney the last three years, there are still good pockets of value with excellent long term value. Infrastructure projects help underpin the access and desirability of suburbs where the next cycle of growth is set to perform.
We have three fabulous speakers all experts in their field including Terry Ryder from hotspotting, Rich Harvey, Propertybuyer, and David Thomas from Trilogy Finance.
Our last seminar booked out so reserve your ticket today to avoid missing out!
Topics covered at this special event include:
* How infrastructure impacts property values
* How to target areas were infrastructure changes are happening or proposed
* Which road/ rail/ hospital will have the biggest impact
* Second Sydney airport – what does this mean for Western Sydney?
* Areas to avoid / areas to target
* When to get into an area with infrastructure changes – go early or late?
* Property strategies in these areas
* How will Sydney perform over the next property cycle
* The latest trends in property financing – how to access the best rates
* Smart financing tips for home buyers and investors
Date: Tuesday 22 March 2016
Time: (6.30pm registration), 7.00pm start to 9.00 pm
Venue: Wesley Centre, 220 Pitt St Sydney (Lyceum Room)
Cost: $19 single, $29 double ticket
Telephone enquiries: 02 9975 3311
Limited seating is available so book early to reserve your spot today!