Selling A Property Off Market - What Does It Mean?
Selling a property off market is defined as a property that is being sold or has been sold without public advertising - no auction, no internet listings, no ads in the local paper. It is usually a property that requires an immediate sale where the sale itself is more important to the seller than the sale price. Selling your property off market isn’t generally recommend in most situations, as it rarely achieves the maximum price, but there are sometimes exceptions.
As an experienced real estate agent Canberra locals rely on for expert property services, PRDNationwide understands that sometimes selling off market may be a suitable option and we can help with the process.
Why Would a House Be Sold Off Market?
When most people choose to sell off market, its generally because they need to sell urgently. Whether due to financial difficulties, relationship breakdown, job loss or any other reason, an off market sale means there is no marketing campaign to fund which could create further financial issues. Sometimes top tier properties are sold off market as these are usually owned by wealthy individuals who value their privacy and prefer discretion around the sale. In other cases, sellers prefer not to have hundreds of people entering their home at public viewings and don’t want the pressure of having to stage the home for sale. Off market buyers expect the home to be in a ‘lived-in’ state and are serious about buying, they aren’t there to waste time. There are many reasons a property could be sold in this manner.
Advantages of Buying an Off Market Property
For the Buyer
The advantage of buying a property off market is that there is little competition so it’s likely you could secure the property at a below market, bargain price. Also, due to the circumstances mentioned above, the seller is usually keen to sell, so this too adds to the prospect of getting the property at well below market price.
For the Vendor
It'll usually guarantee a quick sale and it may mean the transaction has more terms and conditions that favour the seller, including shorter settlement periods, bigger deposits and may even exclude any building faults.
What About the Disadvantages?
For the Buyer
As these properties are not advertised, it may be difficult to find the ideal property that meets your criteria. It's going to be your home or investment property, and with limited exposure, you may have to wait a very long time to find a property that is in the location that you desire, has the features that you need, is in a reasonable condition as is of a price that is within your budget. It is all about who you know and the relationships you have built up over time. It’s important to liaise with local Canberra real estate agents and get the word out that you are interested in buying property. Canberra is a hot market, and the more agents that know you a ready to buy the better as they will keep an eye out and advise you of any properties for sale that aren’t advertised.
For the Vendor
There is a very high probability you will get an under market offer for the property. With no advertising and no auction, it’s hard to generate interest in your property and even harder to create competition, you are relying solely on real estate agents advising their client base about your house for sale. Many vendors believe that selling off market saves costs as there is no advertising fee, in the long run it can actually end up costing thousands as they may end up accepting an offer that is well below what they may have achieved with an advertising campaign.
How Do Off Market Sales Work?
The paperwork involved for an off market sale is exactly the same as any other sale. You'll still need to sign an agreement with a local real estate agent. This agreement will include details about your property, the agent's estimated selling price, your acceptable selling price, method of sale, settlement period as well as the agreed commission and fees. Your agent will advise their client base about your home and then arrange for potential buyers to view your property by appointment. If someone is interested in buying your property, they will make an offer and the sales process will proceed as normal.
Looking for an Off Market Property in Canberra?
The first step is to contact local agents in the area you are looking to buy and let them know you are interested in buying property. Canberra agents such as PRDNationwide will put you on their database and let you know if a suitable property come up for sale in your area and price range.
For the best expert advice on buying or selling a property off market, our highly skilled and knowledgeable team can assist you in person or over the phone. Feel free to call us today on (02) 6262 5232 or send us an enquiry online.