You may have heard the term before but an “off-market sale” is the sale of a property that has not been advertised or marketed to the general public. There are both pros and cons to this approach, so keep reading for my thoughts for both vendors and buyers.
What are the benefits of an off-market sale?
For a buyer, you can get a sneak peek of a property that has very limited visibility for purchase, as the listing is private. This gives the buyer the benefit of putting up a very strong offer immediately without the normal amount of interest and competition from homes that are advertised. In a competitive market like the Mornington Peninsula, an off-market sale is very attractive to a potential buyer.
For a vendor, your agent will bring forth readymade buyers who they know will have a significant interest in the property. An off-market sale can also allow a vendor to dip their toes into the real estate market with very little risk, allowing them to get honest feedback on price and presentation prior to going to market to the general public. The competitive nature of Mornington Peninsula real estate, in particular, allows for potential buyers who have missed out on other properties to be introduced to an off-market listing For a vendor who lives a very private life, there is also a major benefit of not being required to have weekly home opens for privacy or convenience.
What are the risks of an off-market sale?
For a buyer, the offer may need to be very strong to convince the vendor not take the property to market and sell in the traditional way. This could potentially mean that a buyer may need to pay over to secure a property that may have sold for less by going to market.
For a vendor, there is a chance you may get less for your property than if you used a traditional method of selling. By communicating with fewer buyers, you are limiting the potential buyer pool. By saving some money not advertising you could potentially be losing money on the sale itself. When a vendor receives an offer on an off-market property, they may not know if this is the best offer that they can accept. With any decision in real estate, use the resources you have available to you. If you are planning on exploring an off-market sale, the best tool is to use the network of your real estate agents, as they will be bringing the potential buyers directly to the property. Whichever direction you take, there will always an element of unknown. The most important thing is that you feel comfortable and confident in your decisions, and your agent is best placed to educate and help you along the journey.
Eview Group Mornington Peninsula is in a position to contact more buyers than any other real estate company due to the sheer size of their network and their unique cross-selling model. I’ve recently had great success with an off-market property sale of 1 Klarica Close, Mount Martha. This property achieved a record price for this street, with a fantastic purchase for a happy buyer.
If you have any questions, don’t hesitate to reach out to me on 0419 432 669.