Selling your home off-market: Pros and Cons
From auction to private treaty, or Sale by SET DATE, there are a number of ways to sell a property. There is also the off-market sale, a method which gained significant traction in Australia over the past few years as buyers explored all avenues to get ahead in a competitive market.
What is “off-market”?
Before details of a property for sale are posted online or advertised in the print media, the off-market strategy sees the agent invite qualified and highly motivated buyers from their database to inspect the property privately. Information on the sale is typically shared with a limited number of property seekers through your local Barry Plant agent and the group’s extensive network.
With this non-traditional method, a seller and an agent agree to set up an off-market listing, avoiding public marketing and sales campaigns. The notice of sale is only shared with a limited number of potential buyers.
Pros for sellers
Save on marketing costs and time
Sellers can save on advertising and marketing costs such as online portal listing fees, boards, photography and more. With this method of sale, there are typically fewer browsing buyers, so professionally staging your home isn’t required.
Maintain privacy
By opting for an off-market sale, sellers ditch open house inspections for private viewings with serious, shortlisted buyers. This allows sellers to limit people coming through their homes and prevent people from visiting without real intent to purchase. Some sellers may not want to disclose the sale of their home, and this method maintains that privacy.
Pros for buyers
Less competition
Selling a property off-market limits the number of potential buyers who will find out about the property. It also avoids competition-driven price inflation often seen in the open market.
Without the pressure of possibly losing the property to others at an auction, the buyer can make a sensible, considered decision that aligns with their needs and budget.
Better deal
A public campaign will draw more eyeballs, typically, the higher the sale price. Fewer eyeballs can minimise the chance of a bidding war, leading to a buyer securing a better price than in the open market.
If the initial offer for a property is below market value, but the seller is in a distressed position, there is a chance for the offer to be accepted.
Cons for sellers
The maximum price
Sellers who opt to keep their property listing out of the public eye could potentially miss out on getting top dollar. By not opening the opportunity to a wider pool of buyers, sellers could limit the competition and not be fully aware of what buyers might be willing to pay.
No marketing
While sellers will save on marketing fees, they are also hindering the amount of exposure their property will receive. An online listing or a photo board in the street can attract many potential buyers, as opposed to the possibly limited number of serious buyers an agent is aware of.
Cons for buyers
Patience
The off-market approach can take time and requires patience. As it’s not the preferred method of sale, the number of off-market property listings is limited compared to public listings.
Limited options
If buyers only want to purchase property through an off-market sale, the choices can be quite limited. It also takes a lot of groundwork to find properties that aren’t publicly advertised. Getting in touch with local Barry Plant agents will help to open up more options.