There are various methods which property can be sold, with sale types ranging from auctions, private treaty. expressions of interest and selling off market. Read more about different sale types here.
An increasingly popular sale type is the selling off market method, where qualified and highly motivated buyers are invited to inspect and make an offer on a property before it is officially listed for sale.
In this case, the notice of sale is typically shared with a limited number of property seekers through off market listing platforms or buyers’ agent networks. This gives the seller control over who can view and inspect their property while reducing the costs of selling and marketing.
THE PROS OF SELLING OFF MARKET
Potential Savings – Selling off market can save the seller money on the listing. Offers can be submitted, reviewed, negotiated and accepted before investing in external marketing options.
Reach the Right Buyer – Off market sales allow seller to cut through the noise and only invite qualified and highly motivated buyers to inspect their property.
A popular way by which sellers can reach these types of buyers is via buyers’ agents, who are employed by motivated buyers to help them secure a property. Buyers’ agents will proactively reach out to real estate agents with their buyers’ search criteria so real estate agents are able to notify them of suitable upcoming off market sales.
Another way to reach qualified buyers is through online off market real estate platforms which require buyers to provide specific criteria. If a property matches their criteria, the buyer Is notified immediately.
No Open Homes – Selling off market means fewer buyers and less foot traffic through a property, reducing the need to prepare and stage a home for potential buyers and open the home for regular inspections.
Test the Market Price – Selling off market gives sellers a picture of the property’s saleability. Testing the markets response, both positive and negative and gauging price expectations. If a property doesn’t sell off market, vendors can then take it to the open market with a clear price strategy and realistic expectations.
Less Pressure – Because an off market listing doesn’t have an official start date, sellers can take their time and test out the market without fear of a negative impression from potential buyers. The longer a property spends on an open market, the more lowball offer it will attract.
Get Your Requirements Met – Reduced competition can allow sellers to develop a personal relationship with buyers in which the buyer can better understand the sellers reasons for selling and make offers that meet their needs outside of just the price.
More Privacy – Choosing to go with an off market sale allows sellers to keep their property away from an open real estate market. No public listing, no auction and no open homes which affords seller great privacy.
Faster Transaction – By avoiding the length of a typical sales campaign which can sometimes take several months, sellers can achieve more immediate results selling off market.
THE CONS OF SELLING OFF MARKET
The Risk of Not Reaching the Best Sale Price – Typically higher amounts of buyer interest in a property means greater competition and a potential for a higher sale price. Less buyers means less offers and less change of a bidding war which could potentially see the property sold at a lower price than it had been listed on the open market.
Slower Sale – There is no counting days on the market when selling off market, however sellers may have to be patient. Off market sales are all about attracting the right buyer and in the case where it takes a while to find the right person, a property is obviously going to take longer to sell.
Overlooked Fees – Typically, off market platforms charge a listing fee when a property is sold, which can be east to overlook during the sale transaction. Sellers should check the fees payable before the property sells so there are no surprises at the end.
