Off-market properties are just what they sound like. They’re properties not listed on MLS or through a real estate agent. Keeping a property hidden can be beneficial for both the buyer and seller, depending on the individual goals. So why would a seller not want to go public with their real estate? Here’s a few of the most common reasons we see.
Not everyone is decisively ready to sell their home. Perhaps they’ve kicked around the idea for a while and now want to test the waters. Going off-market eliminates all the pressure. You won’t have agents and buyers calling you up or knocking on the door every 5 minutes. If you’re selling a building with tenants, it also allows them to go unbothered by the process. If, during the process, you find someone who has a great offer, terrific! Otherwise you haven’t lost anything and you’ll be more prepared to go to market later in the future.
Let’s say you are a celebrity. First of all, congratulations on your success! Chances are you don’t want to publicize where you live, and you definitely don’t want strangers walking through your bedroom. By going off-market you avoid the public altogether and interact soley with interested buyers.
One of the biggest hassles of selling a home is getting it ready for showings. This means cleaning, repairs, and often staging. Sellers go through all this work to make their property stand out amongst the crowd. Going off-market eliminates the need to beat the competition, meaning no need for all the extra hassle.
It’s important to remember, however, that there is no downside to cleaning and staging (besides the hassle). Putting in the extra work can lead to more money at closing.
Though it seems counterintuitive, often sellers can make more money in an off-market deal than through MLS. There’s two main reasons for this. Since there is no rush to sell, the seller can be more picky about the offers they entertain. Secondly, if you have the confidence and wherewithal to sell your property off-market, it typically means you have a good understanding of the current market and can use that to your advantage.
There can be great deals for buyers too. Since there is less competition, it may be possible to get a high quality home at a lower priced. Distressed properties are also frequently unlisted and can be purchased at a bargain price.
Whether you are doing a regular listing or going off market it’s always advisable to get professional help with the deal. For more information on real estate investing, read the other blogs we have here or visit www.alisafavireviews.com.