Should you only focus on buying off market properties?
Off market seems to be a bit of a buzz word. Agents are using it, some buyers agents pitch their value on off market access and you may even see some signboard saying ‘sold off market’.
Agents email you ‘off market’ properties to their database. Is that really off market if it is available to everyone in their database?
Is there a benefit to off market property sales? In short there is to eliminate competition but you need to deeply understand the market to ensure you are not over paying. A good buyers agent will help you avoid this.
Why would someone sell off market?
- Ask for an unrealistic amount and see if anyone sees value. Dangle the carrot and hope someone bites
- For an easier transaction
- Not having to open their home every week
- Do not want nosey neighbours or tyre kickers inspecting their property
- Legal reasons such as divorce
- Don’t want their neighbours to know they are selling. This happens 😊
Truth is there are not that many off market sales. It’s a good marketing tool to get you interested and make you think you are missing out.
There are occasions where getting early access to properties is beneficial, beat the crowds and get the first chance to secure the property at fair market value. Never underestimate this but you need to deeply understand the market to make sure you are paying fair value.
Secrets out, rarely are off market properties secured for a fair price. Most of the time you will be giving the vendor what they want and why would you, they hold all the power and the market has not had a chance to determine any value.
There are occasions where vendors are reasonable, and the property is sold off market for a fair price. This would not be often.
is there a benefit to buying off market property?
A good buyers agent will protect you from over paying when purchasing off market or pre market properties. Sometimes its best to walk away if the vendor and selling agent are being un reasonable.
Right now, we are in a changing market. The seller has had all the power for the past two years, and we are starting to see the buyer hold the power. This is what we call a ‘buyers market’.
It might be the best strategy to be patient, let the property come to market and secure the property for less than the vendor’s initial expected price.
Do not get roped into the off market dream. If you think you need help sourcing and forming the correct strategy to secure a property at the best price possible, we would love to hear from you.