- One reason a property goes off-market include privacy for the seller
- Getting to know local agents can help with accessing off-market deals
- Benefits include less competition from other buyers
As buyer’s agents, we are expected to present to our client the best investment opportunities available, which means having access to all the properties available to buy. This includes listed, pre-market properties and off-market properties. We need to have an insight into what will be coming onto the market as well as the ability to snatch something up before it becomes available on the open market.
Why do off-market opportunities exist?
There are a number of reasons that off-market opportunities exist. One reason may be due to the privacy of the seller. The seller may not want everyone to know their business, or maybe they don’t want their nosey neighbour to weigh in their opinion.
Sometimes properties are sold off-market due to inheritance reasons (also due to the family wanting to keep things private), family breakups/divorce, or financial distress sales.
Another reason why off-market opportunities exist is that properties are available for sale before they are listed to the general public.
There is a lag in time between when the property is available for sale and when it is listed online because there are a number of things like marketing and advertising, professional photography shots, and listing wording to be finalised.
The benefits of going off-market
- The seller can keep their privacy
- You may be able to secure a better deal
- Less competition from other buyers
- Sellers save on marketing and advertising costs and don’t need to have open homes. Some of these savings may be passed onto the buyer
The drawbacks of going off-market
- You may not get the best price, and sellers may have too high expectations (due to off-market properties not receiving buyer feedback)
- You need to be careful of the terms in the contract. Often, they will want to sell off market with 66W conditions (no cooling off period)
- You may feel under pressure to act quickly and to buy the property before it becomes available on market
- An inexperienced vendor might change their mind
How can I buy a property off-market?
If you want to access off-market opportunities, you need to develop strong relationships with the real estate selling agents in the area(s) that you are looking to buy.
To do this, it is important to prove that you are serious about buying. Make sure you have your finance in place and have a clear idea of what criteria you want in the property, have a clear budget, size and type of the property, and be ready to buy if the right property is presented to you.
This is why buyer’s agents often get off-market opportunities first, because the selling agents know that buyer’s agents have a list of serious buyers and their clients are finance approved and ready to go.
Eight tips to gain access to off-market opportunities:
- Have your finance pre-approved
- Be clear and concise when communicating to a selling agent about what you are looking for
- Familiarise yourself with agents in the area and develop relationships with local selling agents
- Communicate quickly and concisely to real estate agents on whether a property does or does not suit your needs (i.e. don’t be a time waster). If you take too long to reply or communicate your thoughts on a property, you may appear to not be serious
- Make sure you have already done your research on the location
- Ask the right questions
- Be prepared to buy if a property that fulfils your criteria is presented to you
- Don’t get flustered, stressed, or pressured to buy because this would risk paying too much or making a poor decision.
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Disclaimer: This article contains general information and should at no time be considered advice to the reader. The reader should always verify their situation with the relevant certified professionals before taking any further steps.
