Off-market property sales have changed the way property is bought and sold in today’s modern market. By directly connecting genuine buyers with their dream home as soon as it’s listed, buyers and sellers save time, money and stress.
Let’s look at some of the top benefits and disadvantages of off-market properties for both buyers and sellers.
Pros of off-market property sales for buyers
Save time and stress less
If you’re looking to buy a home, it’s likely that you’ll spend hours scrolling through property websites and devoting your weekends to attending open for inspections.
When you sign up to an off-market real estate platform, you nominate the specific criteria of what you’re looking for, whether that’s four bedrooms in Mentone, a house with a pool or a two-car garage. When a home that matches your specific criteria is listed, you’ll be alerted immediately via SMS or email. You can go back to enjoying your weekends doing the things you love.
Be the first to know when your dream home is listed
Instead of stumbling upon your dream home online or discovering it while you’re out walking in your favourite neighbourhood, you receive an alert the very moment the property is listed. This puts you ahead of all the other buyers using traditional methods to find real estate.
Cons of off-market property sales for buyers
Some off-market platforms are built around the principle of matching properties with buyers based on what a buyer is looking for in a property. These off-market platforms challenge the traditional model of spending hours searching for properties online. But you may feel as though you aren’t getting enough property matches. If this is the case log into your dashboard and broaden your property match criteria. If you’re receiving too many property matches that aren’t relevant, do the opposite – narrow down your search by adding in the specifics of what you’re looking for to your criteria.
Pros of off-market property sales for sellers
Off-market sellers save money
When you decide to sell off-market, money can be saved on expenses such as photographers, property stylists and listing fees. Off-market property sales can save sellers anywhere between $5,000 to $30,000. Plus, auction fees aren’t required as off-market properties don’t go to auction.
Off-market sellers connect with genuine buyers only
Open homes attract those that are genuinely interested and let’s be honest, some that are there just for a stickybeak. On off-market platforms, registered buyers are paired with an ‘Agent Assist’ helping to ensure they’re genuinely motivated to buy.
List your property immediately
When you list a property for sale the traditional way, it typically takes around a week or more for the property to be publicly advertised. This time is needed to compile the marketing materials, stage a photo shoot and prepare the ad copy. When you tap into an off-market platform, you can list your property for sale immediately.
Databases allow you to list your property as soon as you’re ready to sell.
Sell your property in private
If you’re forced to sell your property due to foreclosure or a messy divorce, a private sale may be just what you’re looking for. Off-market property sales often mean no one but those people registered on the off-market platform actually know your property is on the market.
Cons of off-market property sales for sellers
You won’t get cold callers interested in your home
Selling off-market means the general masses won’t know your property is for sale. This means you won’t be approached by passers-by or people browsing online real estate websites.
Miss out on driving auction competition
The off-market approach may mean missing out on optimising on the competition that an auction brings, especially when an auction could potentially drive the property price up. This, however, can be a pro though, as the stress and costs involved with selling at auction can be overwhelming.
You may forget to factor in the ‘no sale, no charge’ off-market listing costs
Off-market platforms collect listing fees only when the property is sold, which can be easy to forget with so much going on. When using an off-market platform, ensure you investigate the fees before your property sells so there are no nasty surprises at the end. Many sellers, however, believe that no upfront fees and the no sale, no charge approach far outweighs the financial burden of finding these funds as soon as you decide to sell your home.
Like anything, there’s always pros and cons, however, in the case of off-market property buying and selling, the pros outweigh the cons. There’s nothing to lose. Who doesn’t want more time, money and less stress?