What Does “Off Market” Really Mean?
The term off-market is common among real estate agents and people who are selling their houses. But what does “off market” really mean? Well, you are in luck as we will tackle that in this article to give you better understanding of what off market means.
What Is Off Market?
An off-market is a term used in selling a property that has already been sold without making any advertisements about it. This term is commonly used in property conversations and is usually linked with a property or house that needs to be sold immediately. It is usually the sale that matters more than the price it has been sold to. So perhaps now you are wondering, is selling off market worth it? If you want to achieve the best price you can get then it’s not ideal but if you are going to make a last minute decision then yes, this is the best way to go.
In short, an off market property is a property or house that can be sold if the owner presented it with an acceptable price or offer but has not decided to promote it. Although selling off market properties are quite faster, it does not always have the best results. This is also because off market properties are not listed on the Multiple Listing Services which can help the seller find a good buyer fast. When the property is not listed under MLS, there’s only a little number of people who knows that the property is for sale. The excellent way to get the word out is to ask help from a real estate agent who can find buyers through what they call as Pocket Listing Services.
Pocket Listing Services
Real estate agents are known for having multiple connections. That is why it is a lot easier to sell a property through them even if it’s an off market. A pocket listing is actually a property that the listing agent keeps off the market. These properties are then shown only to a selected clientele. Although the seller knows that their property is for sale, it is not listed in MLS. This is what real estate agents call as the “quiet” listings as these are only shared between agents who trust each other.
How Can You Find Off Market Properties?
If you are interested to find off market properties or planning to sell your house off market then you must first know how to find them. Here’s a list of options to choose from:
- Real estate agents
- Auctions
- Networking
- Direct mails
- Builders and contractors
- Resources online
- Public records that hold properties
- Word of mouth
- Wholesalers
- Driving dollars
Advantages and Disadvantages of Buying Off Market Properties
Of course, like any other investments, you should know how buying off market properties can help you. Should you consider getting one? If this is your plan then know the pros and cons first.
Advantages of Buying Off Market Properties
Buyer’s Advantages
- If you are a buyer then you can enjoy a bargain price. The competition is also lesser compared to houses in the listing services. You can also take advantage of the exclusivity of the deal.
- It is also most likely that the seller will accept your offer since there’s not a lot who will know about the property they are selling unless they choose to advertise it.
Seller’s Advantages
- If you are the one selling the property then expect a quick sale. This can happen if you and the buyer agree on the amount presented or offered.
- You can sell your property with more terms and conditions. This means you can control how you would like to sell your house if you want to sell it quicker. You can ask bigger deposits or even an inclusive of the property’s faults.
Disadvantages of Off Market Properties
Buyer’s Disadvantages
- Your options are limited since not a lot sell off market.
- You will have to find a house that meets your standards so you need to have more patience and research.
- It takes time to build relationships among connections and networks of people who know about off market sales.
- Not all properties you find are ideal for investments.
Seller’s Disadvantages
- There is a big chance that you will be offered a lower price compared to houses and properties advertised.
- You can’t go to auction.
- You will be left out contrary to popular belief that you can save money without advertising your property.
- Your property does not stand out since it is not advertised.
- It may take time to sell your property.
- Not a lot of people will offer you enough money for your property especially if it’s an old house.
Your Takeaway
To be honest, the cons weigh more than the pros on off market deals so it is less likely ideal to buy one. You can get something cheap but if it is damaged and needs renovations then you will be spending twice than it’s actual value! But if you really are interested in buying a property in the off market listing then you need the help of an expert real estate agent. Find an agent who has the experience of finding off market deals. An agent with excellent negotiating skills is someone you need on your side if you are aiming to buy a property. Inexperienced real estate agents can always deliver what you need so you might as well find someone who you can trust. This is all you have to do to save you time and effort.
Yes, finding an off market deal is tricky and if you are not an expert, you might just end up wasting your time and money. You can have all the patience in the world to surf online but if you don’t have the negotiating skills as well as the knowledge of the twist and turns of the real estate world then you are just wasting time. So don’t go anywhere else, go straight to the point, hire an expert and you will surely get good deals!