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Selling Off Market Property Explained

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buying and selling off market property

When it comes to selling property, there are several methods available, such as auctions, private treaty, and expressions of interest. One of the increasingly popular options is selling off-market, where the seller invites buyers who are both qualified and motivated to view and submit an offer on the property before formally listing it for sale.

In this blog post, we’ll take you through the pros and cons of off market property sales, so you can make an informed decision on whether it’s the right approach for you.

Sold Off Market Meaning

An off-market sale is a discreet property transaction that doesn’t involve public advertising or listing on the open market.

Qualified and motivated buyers are invited to inspect the property and make an offer before it is listed for sale. The seller shares the notice of sale with a limited number of potential buyers through off-market platforms or buyer’s agents.

Off-market house sales are becoming increasingly popular, especially for high-end properties. This type of sale offers a level of exclusivity and privacy not achievable through traditional sales methods.

Both real estate agents and/or off-market listing platforms have access to pre-qualified and motivated buyers.

This gives the seller complete control over who views and inspects the property while minimizing marketing costs. Properties sold off market may not have a cooling off period and can be completed quickly once a suitable buyer is found.

Sold by Private Treaty Meaning

When selling a property through a private treaty, the seller sets a fixed price, and buyers submit offers to the selling agent. If the seller accepts an offer, the sale is completed.

Unlike an auction, there’s no set timeline for a private treaty sale. Negotiations can continue until both parties agree on a price.

It’s important to note that a cooling-off period applies to private treaty sales. This allows buyers to withdraw from the sale without penalty within a certain time frame.

Private treaty sales are suitable for those looking for a quick sale or for properties that aren’t ideal for auctions.

An experienced agent should ensure that the property is priced correctly, and the sale terms are clear to all parties involved.

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Off Market Real Estate Pros & Cons Explained

The Pros of Selling Off Market Property:

Potential Savings:

Selling off market can result in substantial savings for seller listing fees as submitting, reviewing, negotiating, and accepting offers is carried out prior to investing in any external marketing options and/or auction fees.

Reaching the Right Buyer:

This type of sale enables sellers to invite only the most qualified and motivated buyers to view their property, reducing unwanted traffic and noise. These buyers can be reached through buyer’s agents or online off market real estate platforms that have specific buyer criteria.

No Open Homes:

A sale conducted off the market greatly reduces the necessity of home preparation and staging for potential buyers. It also means not having to open up the property for regular open house inspections.

Testing Market Price:

An off market approach offers a glimpse into the property’s marketability, evaluating the market’s reaction and determining price expectations.

If the property doesn’t sell, sellers can then enter the open market with a defined pricing strategy and achievable expectations.

Less Pressure:

Without an official start date, sellers can test the market without fear of a negative impression from potential buyers, and the longer a property spends on the open market, the more low-ball offers it will attract.

Meeting Requirements:

Having less competition in an off-market sale permits sellers to establish a personal connection with potential buyers. This helps buyers to gain a deeper understanding of the seller’s motivations for selling and make offers that cater to their requirements beyond just the price.

More Privacy:

Going this route allows sellers to keep their property away from an open real estate market, affording greater privacy in general.

Faster Transaction:

By avoiding the length of a typical sales campaign, sellers can achieve more immediate results.

The Cons of Selling Off Market Property:

Risk of Not Reaching Best Sale Price:

Fewer buyers mean fewer offers and less chance of a bidding war, which could potentially sell the property for a lower price compared to if it were publicly listed on the open market.

Slower Sale:

To attract the desired and appropriate buyers, off-market sales require time and patience to find the right match, which could result in a slower sale process compared to the traditional open-market method.

Overlooked Fees:

Usually, when a property is sold through an off-market platform, there is a listing fee that sellers need to pay which can be easily overlooked.

To determine if an off-market sale is suitable for your situation, don’t hesitate to reach out to us at Property Brokerage as our expertise in guiding vendors towards the most appropriate sale method is invaluable.

Contact us today to learn more about how we can assist you in navigating the off-market sale process.

Read more of Selling With Property Brokerage

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