If you have been searching for the perfect property for a long time and not found the place you’re looking for, an off-market property could be the answer for you. But how do you find these secret real estate listings? And what are the benefits of buying in this way? Here we take a look at everything you need to know about buying an off-market property.
Off-market properties, sometimes known as “silent listings,” are properties which the owner wants to sell, but which are not advertised on the market. They generally fall into three different categories:
The selling agent gives exclusive first access to their database of contacts. If none of these buy the property, it will then be advertised on the market.
These are properties which are still for sale but the advertising commitments have expired, sometimes along with the selling agent’s involvement. This enables interested parties to negotiate directly with the vendor.
These are only sold off-market and will never be advertised, whether or not there is a selling agent involved.
The vast majority of properties are advertised on the market, but a vendor might choose to sell off-market for a number of reasons:
This offers a great opportunity for people in the know to approach them and make an offer.
By far the quickest, easiest, and most reliable way to find out about secret real estate listings is to engage the services of a reputable buyer’s agent. These are highly experienced real estate professionals with a wide range of contacts in the local real estate industry. As the buyer’s agent has established relationships with all the selling agents in the area, their contact details will be on the databases of the selling agents, so they'll get to hear of all the local off-market opportunities. It is much harder for buyers to find out about these opportunities themselves.
When you engage a buyer’s agent, let them know all the criteria for the property you are looking for — location, price range, number of bedrooms, and so on. This enables the buyer’s agent to find the ideal property for you. They may even knock on doors to see if there is any chance of buying a house that's not currently for sale, if it fits the description of what you’re looking for.
In addition, buyer’s agents know if the price of an off-market property is right. They are also highly skilled negotiators, so they may be able to put in a lower off-market offer on your behalf which the vendor will accept.
There are numerous benefits of secret real estate listings for the buyer. These include:
If a property is not advertised on the market, you could end up being the only buyers interested in it. This means the negotiations will be quicker and easier, and you won’t need to worry about being outbid. You are much more likely to have your offer accepted.
Most people who don’t list their properties on the market are looking for a speedy sale, as they don’t want to go through all the marketing necessary with an on-market sale. This means you may get a better price as they want to move quickly.
The prices of on-market properties are often driven up by emotional buyers becoming attached to the property, or a skilled auctioneer persuading people to bid more. As a result, off-market properties can sell for up to 10 per cent less than if they had been advertised on the market.
There are a lot of advantages for the buyer when finding a property off-market. If you are interested in buying an off-market property and you would like to find out more about our support, please reach out. As highly experienced buyer’s agents, we are always happy to help.