Don’t be fooled by the lure of an Off-Market property
At least once a week, I have a conversation with someone who only wants to be shown off-market properties, and I have to explain why that’s not a good strategy for a search. Apart from anything else, you’re ignoring roughly 50-70% of the market as you hunt down your home.
The term off-market instantly makes people think they’re getting exclusive access and potentially a bargain. Sure, that is sometimes the case, but in Sydney, 30-50% of properties never see a For Sale sign, and there are so many reasons why that's the case. Unfortunately, a lot of those reasons work against the buyer, not for them.
What does off-market mean?
An off-market listing is a property that is selling or has sold without any advertising. Generally, you won't find these properties on realestate.com.au or Domain or even the agents’ own website, there won't be billboards out the front of the property, and they won't be sent to auction.
Instead, agents work within their networks to sell the property privately. As a buyer, you often won’t know these properties are available to you unless you’ve got a relationship with a selling agent who has off-market listings. Or you’re working with a buyer’s agent with strong industry connections.
Why do people sell off-market?
There are a lot of reasons a seller may choose not to list their property on the market. It may be that it's a high-profile seller who values their privacy, a busy family who don't have time to be cleaning the house for regular showings, or perhaps even a divorcing couple who need a quick result.
Why do agents recommend off-market as a tactic?
Some agents may prefer to sell off-market as they already have a Buyer’s Agent with qualified buyers lined up or an extensive network of contacts looking for a property. In these cases, a sale can be very straightforward, as things like property styling, photography or open homes aren’t needed.
Agents may recommend selling off-market to secure a buyer with the promise of a high price. Then, after showing some people through, they lower the expectations of the seller based on the alleged feedback. It's unethical but, unfortunately, a tactic that's still used. This is what is sometimes known as ‘Buying the listing’
An agent may also recommend selling a property off-market if it's been hard to move in the past. For example, if it was listed in 2019 with no sale and again in 2020 with no result, listing it off-market creates an air of exclusivity and can attract new buyers.
So, there are certainly plenty of genuine reasons a property is listed off-market, and these can be an excellent find if you've got the right connections. But an off-market tag on a property doesn't always mean it's a must-have.
When is off-market just a marketing term?
The whole point of off-market is that there is no marketing! Don’t get swayed by emails, property listings or agents that are touting the term off-market. There may not always be a catch, but it’s easy to be attracted to the idea of buying off-market and forget about some of the crucial factors you need to consider before buying. You need to ask yourself…
Is it a quality property?
Does it meet my needs?
Is it a fair price?
If you’d like help with your property search, we’ll help you navigate the jargon and marketing tricks, ultimately giving you access to 100% of the market. Please get in touch.