There also known as silent listings or off market real estate. An off-market sale is a term used to define a property that is for sale without public advertising.
The vendors / owners are motivated sellers that are usually looking for a quick sale or a sale with special terms.
Who has access to these listings? Everyone!
Typically buyers agents & real estate agents have the most access to these type of property sales, but the Melbourne real estate market is changing everyday.
Off-market listings are not widely promoted to the general public, generally the are only promoted through a real estate agents network of contacts, buyers agents or other property buyers.
Sellers may choose off-market listings to maintain a higher level of privacy. This can be especially appealing to individuals who want to sell their property discreetly without broadcasting it to a wide audience.
Some high-end or luxury properties are often marketed off-market to create a sense of exclusivity. This can attract buyers who are looking for unique or rare opportunities.
Benefits to the buyer:
No need to spend time speculating about agents underquote.
Save time by not having to manage an inspection with hundreds of other potential buyers, or face nerve-racking auctions.
Removing competition by reducing the number of bidders in an auction, this could indeed impact the final price.
With fewer bidders, there’s less competition, and potential buyers might not feel the pressure to bid as aggressively. This could result in a lower final price.
- Less competition.
- Exclusive access to non-advertised property.
- Save time by not attending opens for inspections and auctions.
Benefits to the seller:
Real Estate agents will advise against an off-market sale due to the fact that a public campaign will almost always drive a sale price higher.
Agents don’t mention the exposure and future business the sellers advertising dollar brings to the real estate agency.
In most cases, vendors / sellers are only willing to sell if their agent can bring in an offer over a certain amount.
- No open homes, auctions.
- No real estate agent conditioning.
- Protect your privacy, no public advertising.
- No commission payments, free sale.
How can our Buyers Agent’s help find an off market listing?
With agents located all across Melbourne we are able to assist clients in every area. We have a strong network in inner city, northern, eastern and south-eastern Melbourne, with a strong track record of successful purchases.
The team at WREA are committed to building relationships with other key people in the industry.
Our positive relationships with vendors and real estate agencies across Melbourne ensure we have access to off-market listings to provide our clients with the greatest range of properties to suit their needs and budget.
Risks of Buying Off Market Property
Limited Market Exposure: Since off-market properties aren’t listed publicly, they may not have been exposed to the market long enough to determine their true market value. This can result in either overpaying or underestimating the property’s worth.
Lack of Competition: While less competition can be a benefit, it can also be a drawback. The competitive bidding process in the open market often helps establish a fair price for a property. Without this, it’s more challenging to gauge if the price is reasonable.
Due Diligence Challenges: Off-market deals may require more diligence. Since these properties aren’t prepared for the general market, there may be less information available, and buyers might need to conduct more extensive research and inspections.
Financing Difficulties: Some lenders may be hesitant to finance off-market deals, especially if the property’s value isn’t clearly established. This could make it harder to secure a mortgage or result in less favorable loan terms.
Negotiation Complexity: Without the usual market forces at play, negotiations can be more complex. Sellers may have unrealistic price expectations, and without market data, it’s harder to negotiate effectively.
Legal Risks: There may be increased legal risks, especially if the property has undisclosed liens, encumbrances, or legal issues that a typical market listing process would reveal.
To mitigate these risks, it’s crucial to work with experienced real estate professionals, conduct thorough due diligence, and ensure proper legal and financial advice throughout the transaction process.
Best Time to Explore Off-Market Listings
The ideal time to explore off-market listings is during a market downturn. When property prices are climbing, it’s crucial to question why a seller would opt for an off-market sale, which often results in a lower price. Understanding their motivation can be challenging.
In contrast, during a market decline, off-market listings tend to carry less risk and are easier to discover. These downturns are usually driven by factors like high inflation or rising interest rates, which lower buyers’ borrowing power and affect property values. If you’re seeking more insights on the best time to buy property in Melbourne.
Minimizing risk is crucial when purchasing off market property, so it’s wise to have experienced professionals on your side. A builder who understands structural integrity can help you avoid costly repairs, while a knowledgeable real estate agent or buyer’s agent ensures you don’t overpay for your property by keeping the negotiations in check with market value.
Would you like to submit your property for sale?
Remember, you do not pay us, as we are paid by the buyer. Your details are confidential, we don’t advertise your address on the web. We visit the property first before we bring any clients. You need to submit an address, a written asking price and a current Section 32 via email.
If at any stage you are unsure of price we can recommend qualified and ethical selling agents. Please submit your enquiry via the form or ring us on 1300 00 WISE. Please refer to our sister company Vendor Advocate Melb.
