Have you ever seen a real estate property sell without ever seeing it go on the market? No For Sale sign, no property listing online, yet the property still changes hands?
This “Hidden Market Place” is known as off market real estate. Some off market properties transact via real estate agents known as a pocket or silent listings or direct from a homeowner to a potential buyer.
However, what a lot of the general public don’t understand is that this off market property world is much larger than most people think.
In the 18/19 financial year our buyers agents at Hot Property purchased approximately 35% of all purchases via this off market real estate method. Using our industry contacts and property expertise, the experienced team at Hot Property Buyers Agency were able to purchase many properties without the competition of an on market environment.
So why would a seller want to sell off market?
There are several reasons why a property owner might want to sell privately.
One big reason is to save money. Completing an off market real estate sale avoids the costs associated marketing the property as well as having to get the property market ready which may include costly renovations, improvements, and maintenance.
However, for sellers there are many more reasons behind going down the off market property sale. Perhaps a family is looking after the sale of a deceased estate do not want strangers traipsing through their family home looking over their family memories or perhaps there is a divorce or some sort of settlement arrangement that is being processed which requires a discrete sale.
No matter what the reason for a seller choosing to sell their property off market, the opportunity for general home buyers or investors to purchase off market property is really quite rare. That is where engaging an experienced buyers agent with market knowledge, real estate agency contacts and the expertise to find, negotiate and secure an off market property with the best conditions and price is invaluable to you as a home buyer or property investor.
Why do buyers like to purchase off market?
Similar to property sellers, the benefits of property buyers purchasing off market real estate are numerous.
Firstly, there is often less buyer competition when it comes to off market properties which can give you more time to do your property market research before you place an offer. And of course, with less buyer competition this can often mean a better purchase price.
Also, with the reduced marketing costs of selling off market properties this can translate to a better price being negotiated and can lead to a win-win outcome for all parties.
So how do you access off market properties?
The most effective way is to engage the services of a buyers agent. Experienced buyers agents have will have expertise dealing with local agents, and be much more in the know regarding the property market and the availability of properties, even those that haven’t made it to market yet.
However, if you did want to venture out and do a DIY off market property purchase, the first step is to create a list of all the real estate agents in the area that you are looking to buy. It’s likely that after looking at on market properties you would have met a few of these agents already. With this list of agents, you want to call them every Tuesday around lunch time! This timing is very important because real estate agents often have sales meetings on a Tuesday morning, and in these meetings the agents discuss the latest listings they have coming up for the next weeks. By contacting agents on a Tuesday these properties should be fresh in their minds and you may get an early look in on some properties that haven’t even made it to market yet.
Another helpful tip is to try and stand out from the crowd, real estate agents meet a lot of people, they cannot remember them all, so be memorable!
Thanks for reading and I hope this has been helpful for you on your property journey!
Managing Director & Senior Buyers Agent.