An off-market sale is a term used to define a property that is selling, or has already been sold, without public advertising. It means the home can be sold if an acceptable offer is presented to the owner but has decided not to formally advertise the property.
Here's the thing, there really is no 'off-market', it's really on-market, but without extensive promotion. It's on market because your agent will probably advertise it on their social media, put it in their broadcasts, letter box drop, pop their open home sign out the front, take people through and (fingers crossed) you get some offers.
What are the benefits of selling off-market?
The obvious benefit of selling your property off-market is that you will save on advertising. If you're in an area with a high number of properties selling, you are likely to sell off-market a lot quicker. If your real estate agent has sold a property, comparable to yours recently, they may have an excess of active buyers remaining that would be interested in snapping up your property. Another benefit is your personal situation, if you are in a sticky situation with family members or neighbours, choosing this method can ensure a slightly more discrete sale. However, there is no guarantee of a fast sale when selling off-market, because the buyer pool that your agent is presenting your property to, will be a lot smaller in scale compared to if they open it up to the public.
What are the risks of selling off-market?
The biggest risk of selling off-market goes without saying, you are at risk of leaving money on the table. There is a likelihood of receiving a lower sold price than if you had taken the property to market, opening the opportunity up to more buyers, which in turn, drives the sales price up. When you agree to advertise your property, your real estate agent can now do everything in their power to get you the best outcome possible by reaching as many buyers, that are out their looking for a home similar to yours. Going to market publicly also gives you the chance to decide the best method of sale. Thus, allowing the ability to go to Auction. Auctions have the capability to create increased competition between buyers, often leading to a higher selling price. Selling off-market may save you advertising costs, but it means never knowing if you maximised your sold price.
Should I sell off-market?
Whilst the market is proving to be much stronger than it was previously, and more and more people are selling off-market, you are probably thinking 'Should I be doing this too?'. Is it the best and safest option? It could be or you could lose tens or potentially hundreds of thousands of dollars. If you are looking to save money on advertising, perhaps selling off-market is right for you. However, if you want to attract as many buyers as possible, choosing to advertise would be the smartest option. Consider also, a rising market might work in an off-market setting but a flat or falling market will not. However, if you are selling in a rising market, why not make the most of it and present it to as many buyers as possible.
If you are unsure on what would be the best way to market your property, please give us a call and we will have one of our specialist agents contact you.