What is an off market property sale and should you consider it?

Generally, most homebuyers are familiar with private treaty sales and property auctions. But there’s another thriving world of bricks-and-mortar trade where you can potentially find some great deals that never appear on a listing site. Such hidden listings or off market properties are not publicly advertised for sale on mainstream real estate channels like popular websites or social media. Instead, sellers list their properties with agents who directly contact interested buyers whose requirements match the property on sale. 

Often, these properties are actually pre-marketing listings. This means agents choose to contact some buyers on their list before listing the property for a wider audience. However, there are also some genuine off market properties where the seller deliberately chooses not to advertise the property to the mass market. 

For instance, it is possible that the seller is a private person and wants to avoid a crowd of people running through the house and inspecting every nook and cranny. It’s also possible that the seller is going through a personal loss, like a divorce or death, necessitating a quick sale, but they prefer to avoid a crowd. By asking a real estate agent to only share the listing with a few selected people, sellers can ensure privacy and only have a few serious buyers visiting the property.

A seller who chooses to sell ‘off market’ also saves on marketing and advertising costs. Off market sales are also helpful when a seller doesn’t have the time to run an entire marketing campaign. Conversely, a seller may choose this option when they’re in no hurry to sell the house. By asking the agent not to list the property and only recommend it to a few interested buyers, it’s possible to find a buyer who’s ready to pay a good price and comfortable with the seller’s other terms, such as a delayed settlement

• At the top of the list of benefits is exclusivity, or the opportunity of viewing and acquiring a property before it’s seen by other potential buyers. This may be useful if you’re planning to buy in a thriving area with limited scope for new residential development and where current properties rarely ever come up for sale due to their prized location.
  
  
• In most cases, buying off market also gives you more room to negotiate and ample time to inspect the property before you actually decide to purchase it. On the flip side, you may be fooled by sellers who don’t really want to sell but simply want to test the waters. You may even end up paying a very high price for a property, especially if you don’t know much about the local real estate market. You can order a free property value estimate to get an idea of comparable sales in the neighbourhood to determine whether the seller is asking for a fair price or not.
  
  
• You’ll also need to be more diligent when buying an off market property. As these properties are not listed anywhere, you may find it challenging to get all the information you need, such as floor plans, list of amenities, future developments, council plans, etc. It’s helpful to have an experienced agent by your side and engage a professional to thoroughly inspect and evaluate the property before you make an offer on it. Another potential challenge when buying an off market property is the lack of a fixed timeline. 

If you’re looking for off market properties, you may join off market buyers’ lists for real estate agents in your area. It also helps to regularly touch base with your agent and remind them of your requirement, so they remember to contact you whenever a suitable opportunity comes up. However, remember to obtain an independent valuation whenever you consider an off market purchase as sellers often quote inflated prices, and the risk of overpaying is far greater when you’re unfamiliar with the local real estate market.