What is off-market selling?
Selling off-market means that you’re selling without advertising the property to the public to drive interest. Agents contact interested buyers privately. This means the dwelling can be purchased if the owner is presented with an acceptable offer.
What are the benefits of selling off-market?
If you’re confident in achieving a pricing outcome that you’re happy with off market, great! Selling off market is generally a much cheaper option, as you don’t need to worry about the costs of marketing. If you’d like you sell your property cheaply, selling off market might be the right decision for you.
If your agent has a strong buyer network, selling off-market can be ideal for a quick sale. This can result in a shorter settlement period and bigger deposit. There’s no option to auction your property if you choose to sell off-market. This saves you the risk of a prolonged selling process if the property doesn’t sell at on the day. If you need to sell your property quick smart, and the sale is more important than the sold price itself, selling off-market is the go-to method. If you’re in an area with a high number of properties selling, you’re likely to sell off-market quicker.
It’s also important to consider recency of sales. If your real estate agent has sold a property similar to yours recently, they may have buyers who missed out on that sale who would be interested in snapping up your property.
Another benefit is your personal situation. If you’re in a sticky situation with family members or neighbours, choosing to sell off-market can keep you out of the public eye.
As off-market sales become more popular, real estate agents and buyers may even chase down homeowners who aren’t yet in the market to sell. Therefore, when presented with an appealing offer can lead to the homeowner deciding to agree to a sale.
What are the risks of off-market selling?
The biggest risk of selling off-market is the likelihood of receiving a lower sold price than if you had advertised. This is due to the lack of public interest you’ll receive prior to selling. In terms of reaching the maximum amount of buyers off-market, you’ll want to find a real estate agent with a large network of buyers that they can talk to privately. Relationships are key. Without a good real estate agent with a large buyer network, you’re at risk of little exposure and a low sale price. When you agree to advertise your property, your real estate agent has the opportunity to do everything in their power to get you the best outcome possible.
As mentioned, you can’t go to auction when selling off-market, meaning there will be no build up or ‘hype’ on selling day. Auctions have the ability to create increased competition between buyers, often leading to a higher selling price.
Overall, you’ll save on advertising costs, but at the same time, you’ll risk losing thousands or even tens of thousands of dollars on your final sale price.
So, should I sell off-market?
As the percentage of people selling off-market continues to rise, you’re probably thinking, should I be doing this too? Is it the ‘safe’ option? It could be. Or you could lose out on tens, or potentially hundreds of thousands of dollars. If you’re looking to sell your house cheaply and quickly, perhaps selling off-market is right for you. However, if you want to attract as many buyers as possible to your property, choosing to advertise your property is the smart option.
If you’re looking for advice on whether to sell on or off-market, the best place to start is talking to a local real estate agent. You can compare real estate agents at LocalAgentFinder, including commission rates, marketing fees, sales history and independent homeowner reviews.