Looking for a new home or investment property but don’t have time to waste travelling to opens, having to elbow your way through crowds of other potential buyers and getting outbid time after time at auction? If you are a smart buyer then you are not going to be lured into paying more than a property is worth, so how do you get a shoe in in a market that sometimes seems impractical?
There is another path you can consider to locate a great deal, it’s a sort of side door into the property market.
It’s called off-market sales and now, more than ever, there are some great offers out there. It’s a little-known trend that is quickly gathering momentum and growing in popularity.
What is an off-market listing?
Selling off-market is when a property is sold without all the advertising and public fanfare. It’s cheaper for the seller as they do not need to pay big fees to the selling agent for items like photos, advertising, sale boards and auction staff. Selling under the radar also makes it more personal. A seller doesn’t need to stage photos, host opens and have the neighbourhood traipse through their home. A real estate agent simply tells the ‘right’ people about the listing and checks for genuine interest to buy.
There are a few ways to gain access to off-market property listings.
Real Estate Agent
It’s good to get to know the real estate agents in the area you are looking to buy. Let them know you are a serious buyer and give them a full rundown on your specifics. They can put you on their hot buyer list and call you if they find a good match. If you know your desired location, how many rooms you want, what type of dwelling and the price range you are looking for they can match you to the right property quickly and easily. The more information you give them the better so this method works really well for those who have been property hunting for a while and are confident of what they are looking for.
Independent Buyers agents are negotiating and buying properties on a weekly basis so they have their finger on the pulse when it comes to off-market opportunities. They have a large network of real estate agents who they regularly communicate with, and the agents share off-market properties with them because the agents know the buyers’ agent can transact quickly given a suitable opportunity becomes available. They also have in-depth knowledge of the market so when comes to negotiating the purchase they advise on the best strategy and potentially save you thousands.
Off-market listings – what’s the catch?
Time is the only real drawback. While you might be lucky enough to get a match quickly you need to be prepared to be patient as there are not as many priorities listed here as on the open market.
What are the benefits of buying an off-market property?
Time is also a bonus, however, if you can’t get to inspections around work or family commitments or there is an inconvenient distance between you and your potential buying zone, off-market listings free you up to only look at properties you are likely to buy.
And that’s where the patience pays off. Knowing that when you get a call the property in question is going to be just what you are looking for, and you can get in on a price without the competition breathing down your neck.
It’s a less stressful approach that can also result in a financial win as well. Because off-market sellers get to list their property for less they are not looking to recoup that loss in the sale price. Add to that less competition from other buyers and prices can stay quite low, especially if the owner is keen to sell quickly. This can come about if the property is being sold in a rush, perhaps due to a death in the family or a painful divorce. In these cases, people just want the property sold as quickly and quietly as possible and buyers can pick up a real bargain.
The other place this works especially well is high-end sales. People who own estates and million dollar properties want more privacy and less exposure than a public auction, so while the price is high, if you have the budget for it, you can find amazing gems with spectacular features.
It’s important that you consider what is going to work best for you and your investment, which will depend on the current market in your area and any unique features your are hunting for, as well as your personal needs.
If you would like to have chat about how finding an off-market property could work for you, click here to request a call.
Parley Property Advisory