A quiet property revolution has taken place while media and pundits have been focused on the boom – the rise of off-market sales.
This sales technique is designed to achieve a quick sale at a maximum price without the cost of a sales and marketing campaign or the time and inconvenience of losing weekends to open house walk-throughs.
Sellers who choose an off-market sale need an experienced agent with a quality list of potential buyers to approach. If the agent has few or no contacts, they’re unlikely to achieve the best price or even make a sale.
Off-market sales have traditionally been the domain of multi-million-dollar prestige properties, but the strategy has now become more popular with family homes which are in strong demand from buyers. Many sellers want to avoid the market noise of this boom and are requesting agents approach suitable buyers directly.
As experienced agents in our area, we know how important it is to select an off-market strategy for the right reasons.
While you can save several thousand dollars on a marketing campaign, that’s little more than a rounding error for most city and quality regional properties, especially when compared with the importance of creating market interest in your most significant financial asset.
An off-market strategy will never test the market to find whether your price expectation was under-cooked. You’ll never be left wondering if you sell by private treaty or go to auction.
But if you want discretion and a quick sale – and you know what you’re happy to accept as an offer – then an off-market approach is worth exploring.
Below is an eight-point guide on off-market strategies to help you consider the strategy.
- Motivation – Ask yourself why you might wish to sell off-market. You may want discretion because of a divorce or business circumstances. Or perhaps, you like your privacy, need a quick sale or wish to avoid hoards of potential buyers walking through your home. There’s no wrong reason.
- Price confidence – Research the recent results in your area for your style of home to get a realistic price expectation. If there’s any chance of seller’s regret on your part, an off-market strategy is not for you.
- It’s a deal – You’ll still need to sign a sales agreement with your agent, just as you would if your property was to go to auction or sell by private treaty.
- Low-key – Properties for sale off-market can feature on your agent’s website and will most likely be emailed to their database of potential buyers, but it won’t be found on the major real estate portals.
- Exclusive – Agents will approach buyers on their database, offering an exclusive opportunity. Some of these buyers are likely to have lost out at recent auctions or approached the agent directly. Be sure the agent has a quality database that will deliver a result.
- Advantage: Your sale should be completed faster than average. Everything will be conducted privately, and you’ll avoid people walking through your home during a sales campaign.
- Disadvantage – If you’re in a hurry, somebody’s likely to get a deal. So, you might not always get your desired price but should offset this against the marketing savings.
- Pull out – If the off-market strategy hasn’t worked as you’d envisaged, you can revert to offering the property for sale by private treaty or at auction.