What does off market mean in real estate and what benefits does it have for sellers?

In the real estate industry, the term “off market” refers to the status of a private property that is for sale and has not yet been marketed publicly. Property is off market meaning it is a pocket or quiet listing and is not yet listed on multiple services. The real estate agent may even contact potential buyers to gauge interest before listing your property at all.

Off market sale methods offer benefits to both buyers and sellers and, if you are considering selling your property off market, read on to find out more.

Why would someone sell the property off market?

Someone would sell the property off market for the following reasons: privacy, commission fees, and exclusivity. As a property owner, selling off market provides you with some privacy because there will be fewer people viewing and accessing your sensitive personal information as well as your property.

You may also save on commission fees since there is usually only one property agent appointed to a property. A dedicated agent will ensure they are focused on selling your property at the best price possible.

Listing your property as off market real estate also creates a sense of exclusivity—your property may sell for a higher price than if it is marketed on multiple listing services.

Why are some properties off market?

Some properties are off market in order to reduce advertising and market costs and the expenses of scheduled inspections. An off market listing also avoids a situation where your property is sitting unsold publicly for a long time. If buyers know how long a property remains unsold, they may make lower offers than expected.

What are the risks of off market selling?

One of the risks of off market selling is that you may not receive the highest offer possible because fewer potential buyers have access to your property listing. You will maintain your privacy; however, you may also miss out on bidding wars that often lead to higher sale prices.

Also, as the owner of an off market property, you are essentially placing all your eggs in one basket since this type of listing is usually held by one agent at a time.

It is vital that the agent you choose to sell your property off market has access to a quality network of other realtors, as well as people who buy property off market.

Are there any benefits if you buy off market property?

There are some benefits if you buy off market property such as a lower chance of bidding wars with other potential buyers, the possibility of negotiating a lower asking price, and access to an additional pool of properties.

Even if the off market property you have your eye on is in a popular neighborhood, fewer eyes on it afford you, as a potential buyer, with some advantage and flexibility when negotiating the terms of sale.

How do you find an off market home for sale?

You can find an off market home for sale through real estate agents, by using online tools, and by approaching homeowners directly.

Property owners will contact an estate agent to pre-market their property and find out what interest there might be from potential buyers.

Based on the agent’s feedback, a property owner may choose to maintain their property off market and unlisted.

Remember that experienced real estate agents hold suburb data and information about property past sales history that plays an important role in understanding the features of a particular suburb.

So, do some research and find out who the best agents are in the area in which you are interested, and contact them.

The world is your oyster, and the internet is your gateway. Use non-MLS listings, newspaper classified, or even social media property groups to find off market real estate.

Networking and connection are important assets in the search for your ideal home. Check out the neighborhoods that appeal to you and speak to local homeowners. Word-of-mouth is a helpful tool for potential buyers, especially when it comes to off market properties.

If you have the budget for repairs and maintenance necessary, keep in mind neglected real estate. It could be a chance to take an unwanted burden off someone’s hand at a bargain.

Conclusion

Off market real estate listings are a good idea if you, as a property owner, want to maintain your privacy and reduce your marketing and commission costs.

You may miss out on buyers’ bidding wars, but if you work with an experienced real estate agent with an extensive network, you’ll attract some exclusive offers and avoid your property becoming a publicly stale listing.