By Rich Harvey, CEO & Founder propertybuyer
Doing the merry-go-round of property inspections on the weekend can play tricks on your mind and your senses. Some people love it, some loath it and others just put up with the pain of constant searching hoping that one day they will find “the one”.
But after 6 months of searching many “would be” home buyers get despondent thinking that they will never be able to crack into the market or find the right home that meets their special needs.
Well I am here to share a little secret with you. There is another way. There is a hidden property market out there just waiting to be uncovered which may just contain a property that suits your needs. Welcome to the world of “off-market” opportunities.
What are off-market properties?
Off-market properties are those which are not publicly advertised for sale, or they may be a pre-listing opportunity available to a select few qualified buyers before a full marketing campaign. They are also known as silent sales. Off-market can also be an expired listing where the advertising for a property has ceased and the online marketing stopped, but an agent still has the property listed.
Why would a vendor sell this way?
Some vendors prefer not to let the world know that they are selling their home. They could be a high-profile celebrity, sports star, politician or business person that does not want a spotlight placed over the sales result of their home. These people want privacy and discretion around their next property move.
For other vendors a relationship breakdown, job change, family issues or financial trouble may have triggered the need for an off-market sale.
Or they could be ordinary everyday Australians that are just trying another method of sale. They might not want to spend $10,000 on advertising and marketing and just want a quick and discrete sale to highly qualified buyers. Maybe they don’t want to have to tidy up the house twice a week to look like a stunning display home and have a long drawn out campaign.
The challenges with off-market
Some people believe that off-market properties are a bargain….but think again.
During a property boom, many off market properties actually traded at a premium because the buyer knew that they would need to offer an enticing price for the vendor NOT to go to market and then be faced with increased competition from other buyers.
During a market slow down or correction, there is usually a greater volume of opportunities for buyers to review.
The main issue for vendors is thinking that they have not been able to “test” the open market by advertising their property. They may be wondering if they could get a higher price if they went “on market”. And without an advertising campaign, the property may take a considerable time to sell as there is no end point in sight, as with an auction campaign.
For the buyer, the main issue is wondering if they are paying too much for the property as the vendor is unable to compare a range of offers.
But there are benefits for both parties if the process is managed well. The vendor can save significant money by not advertising. Both buyer and seller may be able to negotiate favourable settlement terms to suit their individual needs.
And don’t forget, agents like off-market properties too. It’s a convenient way for them to complete a few extra transactions each year. They wouldn’t do the majority of deals this way as they need to maintain a strong public profile, but they are open to getting a few extra properties sold by this method.
When a property is called “off market” it does not instantly make it a good opportunity. As a savvy buyer you need to compare on market to off-market properties and accurately assess the current market value.
How can you buy and sell off-market property?
If you are a vendor, I would recommend obtaining an independent valuation completed by a qualified valuer (not a real estate agent). This will help provide a baseline from which you can make an objective decision about the current market value of your home.
If you are a buyer, you must form relationships with hundreds of agents to get access to quality off-market properties. Or you can letterbox drop thousands of homes.
Alternatively use our Buyers Agents to tap into our huge network of sales agents. As we’ve been in business for over 17 years, we have thousands of agents on our database and with one call, we can uncover hidden opportunities you would never know about. We can get you to the front of the queue. We know the value of local properties through our experience. We’ve completed many successful off-market transactions for our clients and are always on the lookout.
If you are looking to crack the hidden market and relieve the house hunting stress, call my friendly team of professional buyers agents on 1300 655 615 or email your property wishlist today.
If you’d like a helping hand identifying which suburbs will suit your lifestyle needs, or help finding your next home, please contact my friendly team of Buyers Agents who would be glad to lend a hand. Tell us your property brief or call us on 1300 655 615 today.
