If you’ve ever researched buying a house or any property for that matter, you may have encountered the term “off-market” properties. But what are they? And what advantages does it offer to you as a buyer? Read on to find out.
An off-market property is a property that is for sale yet not advertised in the public market. You won’t find off-market properties online or any other place publicly announced because the seller aims to keep the sale under wraps.
It may seem like a disadvantage for sellers as competition that traditional listings generate helps push up prices. However, there are reasons as to why sellers choose this route. One is sellers want to test the state of the property market without putting homes for sale upfront. Second is privacy. Privacy comes in handy when we’re talking about selling high profile properties.
1) Less competition Naturally, since it’s off-market, buyers will face less competition. You don’t have to worry about competing with other buyers who may have better offers than you. Buying an off-market property gives you a stronger position to tailor your offers and obtain the best price suitable for you.
2) Low profile When you’re trying to buy from a high-profile seller, off-market property purchases can provide an easy solution for buyers and sellers who don’t want the unnecessary limelight. Since it’s off-market, no one will know about the sale except for you and the seller.
3) More time In a traditional auction every decision must be quick, and you’re under pressure to make a winning offer. This method can backfire especially if you already win the property and you’re obligated to pay for it even if you feel your decision isn’t final yet.
In off-market properties, time is less of a factor. The lack of competition means there’s also no time pressure when buying the property. It can give you more time to negotiate, think about the purchase, and come to resolutions with the seller.
4) Better negotiations When it comes to buying an off-market property, you have more flexibility in negotiations. Why? Because you get to talk to the seller and their respective agent opening up opportunities to negotiate. This is your chance to learn the seller’s motivations, which ultimately influences the offer that you will make. You can work out deals that wouldn’t be possible in a traditional public sale.
The seller’s agent or broker is usually a key player in finding off-market properties. Because of its exclusivity, not every buyer can bid on an off-market property. The seller will have specific qualifications, and the agent’s responsibility is to look for that specific buyer. The goal is to become a prospective buyer who is the right fit. To make that happen, a lot of research and networking will be involved. You can start with researching seller’s agents and get in contact to know what they offer. You also have to sell yourself in order for them to notice you. Some agents have an exclusive website for off-market properties while others may send out emails to a curated subscriber list.
Good thing A9 Property has a carefully-selected portfolio of off-market properties for sale. If you’re looking to invest or buying your first property, you can check the link above or you can contact us for an obligation-free chat. We’re here to help you diversify your portfolio and help you achieve growth in your property investments.