If you are in the market to buy your first home you’ve likely heard the term “off-market” but what does it actually mean and how is it relevant to your property-buying journey?
In this post, I’ll clear up any confusion you may have between a pre-market and off-market, and what difference it makes! I’ll also cover why a vendor may choose to sell their property in this way when at first glance it may seem counterintuitive to listing it publicly. After all, wouldn’t more eyes on the property and expanding their buyer pool be more beneficial to selling a property at the highest price? Not always, and there’s a myriad of reasons why a vendor would choose to sell off-market.
What is an off-market property?
It is a property that won’t be publicly advertised for sale on the internet and is only accessible via local real estate agents who are selling off-market properties.
Are pre-market and off-market properties the same thing?
The primary difference between off-market and pre-market properties is that a pre-market is going to go online at some point in the future. If you have gained access to viewing an off-market property, it is crucial to establish whether it’s a true off-market that won’t be going online as this can influence your negotiation tactics greatly.
So why would people want to sell off-market?
Logic says vendors who sell online will always get the best price by attracting as many potential buyers as possible and increasing the chances of selling at the highest price. So, under what circumstances might a vendor opt to sell privately? Firstly, it’s important to remember not all vendors are motivated by price. Often, reasons for selling off-market are circumstantial.
The following are several common scenarios in which the sale of a property occurs off-market:
In summary, those are the most common reasons for selling a property off-market that I have come across in my time as Buyers Advocate.
My general rule of thumb is not to ask why vendors are selling when a property is advertised publicly. However, if you’re interested in a property that is genuinely being sold off-market (and isn’t a pre-market) it’s definitely valid to understand the circumstances behind it.
A few questions to keep in mind when inspecting off-market properties:
Lastly, it’s important to know in terms of time frames and urgency around that off-market – how motivated are those vendors, the reason why they’re selling off-market will generally allude to their motivation with selling that property and negotiating.
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Expert buyer’s advocate, founder of Amy Lunardi Property and creator of of The First Home Guidebook - an educational podcast series and online course that empowers first-home buyers with all the necessary tools and knowledge needed to buy their first home.
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