This quarter we’ve seen a continued surge in off-market sales activity taking place across the eastern suburbs.
It’s certainly becoming a more popular and viable way to sell and buy property. But is this the right sales strategy for your property?
What ‘off-market’ really means
True off-market sales take place without any public advertising campaign. They rely on the relationships between real estate agents and their network of potential buyers, linking people who have specific property requirements to those with a desire to sell without public attention.
In this way, off-market sales differ from pre-market sales – those that take place after a house has been publicly listed but before auction – and pre-auction sales, which can happen very close to the auction itself through direct negotiation. Sellers use this strategy for a number of reasons, including saving on advertising costs in markets that are more volatile.
Off-market sales function best in tight markets
10 years ago when Sydney’s real estate market felt the shockwaves of the Global Financial Crisis, plenty of sellers attempted to sell off-market, flooding buyers with options and ultimately devaluing these sales. Today, with the eastern suburbs remaining one of the strongest real estate markets anywhere in Australia, selling off-market is a much more reliable sales strategy.
This is particularly true for sellers who can offer a premium property in a tightly-held market. For those with homes valued above the $4 million mark in suburbs where property is in short supply, making your home available off-market is likely to attract buyers with serious interest and the right budget. Of course, using the right real estate agent is a major factor in ensuring you don’t have to settle for a lower sale price, which can be a risk when selling without a public campaign.
Buying off-market is a long-term commitment
Waiting for the right property to become available off-market requires time and patience. You may be ready to buy and have the necessary budget in place, but the perfect home may not have entered the market yet. This is where the relationships and expertise of your real estate agent are crucial.
How a good agent can support off-market buyers and sellers
In the last financial year my team has sold $310,053,500 worth of property and, of this, $127,360,000 or 41%, was off-market.
If you are planning toward an off-market transaction, the connections and knowledge of your real estate agent are the most important factor in finding a buyer.
Good real estate agents are ready to support buyers by taking the time to understand exactly what they want and they do the legwork to find the property that meets these needs. Knowing how the market is likely to move, and which owners could be ready to sell in the near future, a good agent can also make sure buyers don’t make a purchase they ultimately regret just before the perfect home enters the market.
Selling off-market is most effective when your home is in the right area of the market and you are working with the right agent who has the knowledge and skills to reach the best possible price. So for sellers, your agent’s knowledge should be a factor in making sure you don’t settle for an offer below what your home deserves.
Sydney’s Eastern Suburbs Market Snapshot
A detailed annual assessment of the property market focusing on the Eastern Suburbs of Sydney, Australia.