Finally get off the rollercoaster of offering #allthethings by uncovering your true potential
Expert buyer’s advocate, founder of Amy Lunardi Property and the host of The First Home Guidebook - an educational podcast & online course
that empowers first-home buyers with all the necessary tools and knowledge needed to buy their first home.
If you’re in the market to buy your first home you’ve probably heard the term “off-market” but what does it actually mean and how is it relevant to your property-buying journey?
In this post, I’ll clear up any confusion you may have between a pre-market and off-market (and what difference it makes!) and why a vendor may choose to sell their property in this way when at first glance it may seem counterintuitive to listing it publicly.
After all, wouldn’t more eyes on the property and expanding their buyer pool be more beneficial to selling a property at the highest price? Not always, and there’s a myriad of reasons why a vendor would choose to sell off-market that we’ll cover today.
What is an off-market property?
It’s a property that won’t be publicly advertised for sale on the internet and is only accessible via local real estate agents who are selling off-market properties.
Are pre-market and off-market properties the same thing?
The major difference between off-market and pre-market properties is that a pre-market is going to go online at some point in the future. If you’ve gained access to viewing an off-market property, it’s really important to establish whether it’s a true off-market and won’t be going online as this can influence your negotiation tactics greatly.
So why would people want to sell off-market?
Logic says vendors who sell online will always get the best price by attracting as many potential buyers as possible and increasing the chances of selling at the highest price. So under what circumstances might a vendor opt to sell privately?
Firstly, it’s important to remember not all vendors are motivated by price. Often, reasons for selling off-market are circumstantial.
Here are a few really common situations for the sale of a property off-market:
In a nutshell, those are the most common reasons for selling a property off-market that I’ve come across.
My general rule of thumb is not to ask why vendors are selling when a property is advertised publicly. However, if you’re interested in a property that’s genuinely being sold off-market (and isn’t a pre-market) it’s definitely valid to understand the circumstances behind it.
A few questions to keep in mind when inspecting off-market properties:
Is it off-market due to restrictions of access? This is important to know for building inspections etc.
Is it being sold exclusively with that agent or being sold by multiple agents? You don’t want it to be suddenly sold to someone else without your agent knowing.
Are you the only person looking at the property? Exclusivity can change your negotiation tactic if you’re the only person or have competition.
Lastly, it’s important to know in terms of time frames and urgency around that off-market – how motivated are those vendors, the reason why they’re selling off-market will generally allude to their motivation with selling that property and negotiating.
A must-have checklist for any aspiring property buyer - you’ll never look at a property the same way again.
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