Real Estate

How to access ‘secret offering’ but know true value

IN a falling market, is buying an off-market property still worth it?

Since the fall of the market, we have seen more off-market deals in Sydney. In fact, the rise is dramatic across all price points.
In years gone by, mostly high-end properties were sold off-market. But now we are seeing properties across all price points selling with an off-market campaign.
So the big question is why would sellers sell off-market? Is it risky for vendors to sell this way?
A lot of vendors want to test the market to see if they can get a price close to what they want without over exposure of their property online. So many properties are sitting stale or not selling at auction, so they can avoid that.
The risk is not getting enough eyes on the property.
Agents love to say ‘you can’t sell a secret’ but I disagree – a good agent, will be able to match a buyer or buyers agent to the property but it is extra work for the agent.
Are off-market properties generally a good deal for buyers?
It can be, especially when you don’t have competition. I recently entered into negotiation for an off-market property only to have it ‘fall over’ as the vendors changed their mind.
When a vendor isn’t invested in a marketing campaign or has any ‘skin in the game’, they can easily change their mind.
On the other hand, I recently bought a property and was the only buyer’s agent through, giving my client an added advantage and less pressure to move quickly.
There are some great benefits to ‘buying a secret’ but also on the flipside it can be harder to pin down vendors who are not committed to the process.
The top benefits: Less competition; vendors usually wanting to have a quiet sale so willing to negotiate; and less pressure can usually take a bit more time negotiating.
The disadvantages: Vendors not invested in the sales process; you have to know the true value of the property as some vendors over inflate their asking price; and you can’t gauge how popular a property is.
The best way is through a Buyers Agent. Not all BAs have good relationships with all agents so it’s good to do your research see what they have bought recently.
Most agents have off-markets in their data-base.
I like to call this a pre-market as there are usually more people that are exposed to the property.
If you’d like access to ‘secret property’, call Amanda Gould on 0410 608 352 or Tony Day on 0413 696 722.