Across Sydney, we’re starting to see a new trend on the increase: the ‘off-market’ sale.
An off-market sale happens without a public advertising campaign or inspection period – often a few phone calls between agent, buyer and seller is all it takes.
So what are the benefits of this process and what do buyers and sellers need to know?
The benefits of buying off-market
From a buyer’s perspective, off-market sales can be a dream come true. There’s no need to spend time speculating about price, face another auction day or try to manage an inspection with hundreds of other potential buyers. Off-market properties tend to sell faster than those that are publicly listed, so the process is quicker. And sometimes the price can be slightly better than public on-market sales.
Off-market versus pre-market
It’s worth mentioning that some properties aren’t off-market in the true sense. In some cases, agents will let a select group of clients know about a property before the listing goes public. These ‘pre-market’ sales are beneficial for agents and sellers who take the opportunity to cut down on advertising costs, but they don’t usually have the same benefit for buyers as true off-market sales.
Why would someone sell off-market?
Many agents will advise against an off-market sale due to the fact that a public campaign will almost always drive a sale price higher. But for some sellers, speed and privacy are worth much more than the promise of a few extra auction bids. Homeowners may choose to organise an off-market sale because:
- They need to sell and settle quickly for personal reasons such as a separation or divorce, an illness, death or financial strain.
- They’re only willing to sell if their agent can bring in an offer over a certain amount – otherwise they’re staying put.
- They’re keen to avoid the stress and exposure of inspections and a public advertising campaign.
Of course, every seller’s reasoning will be slightly different, which is what makes off-market sales more difficult to predict and plan for.
Finding off-market properties
The key to finding off-market sales is building links with real estate agents in the areas you’re most interested in. Take the time to meet with agents, check in regularly, and register as an off-market buyer so you can be contacted as soon as an appropriate property surfaces.
Buying an off-market property
Once you hear about an off-market sale that interests you, there’s no time to waste. Remember that off-market sellers are usually looking for a buyer who can move quickly. You’ll need to make sure your finances are in order, your budget is set and you know exactly where you’re willing to negotiate. Like any property sale, the off-market process has its moments of tension but for the vast majority of buyers, it’s nothing compared to the drama of a public sale.
The good news for buyers interested in Sydney’s eastern suburbs is that the current combination of high demand and low supply is making off-market sales increasingly likely.
If you’re keen to hear about off-market sales in Sydney’s eastern suburbs as soon as they become available, sign up for exclusive access to our database today.
Sydney’s Eastern Suburbs Market Snapshot
A detailed annual assessment of the property market focusing on the Eastern Suburbs of Sydney, Australia.