AN InSIGHT ON Buying Off-Market |
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“Off-market” doesn't mean better. "Off-market" doesn't mean cheaper.
& "Off-market" does not mean you're getting a deal. In most cases you're paying UP for exclusivity. So, what are the pros and cons to dealing off-market, and then how do you find off-market properties? So, what does Off-Market really mean? In real estate, “off-market” can mean two things: that a home is not for sale, or that it's for sale but not listed. Most generally, “off-market” means that a property wasn't listed on the MLS by an agent.
Let me give you a peek behind the curtains. |
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THE PROS OF Buying Off-Market |
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Access & Exclusivity. One of the notable benefits of acquiring a home off-market is gaining entry to properties not publicly listed or advertised for sale. Off-market properties offer the potential to secure a home that might not have been accessible through conventional channels. Less Competition. Engaging in off-market purchases often means less competition from other buyers. As these properties are not publicly listed or marketed, there tends to be a smaller pool of prospective buyers who are aware of their availability. This advantage can provide you with a competitive edge and spare you from bidding wars. Personal Negotiation. Off-market transactions open the door to more personalized negotiations between the buyer and seller. With fewer parties involved, there is often greater flexibility in terms of price, conditions, and other terms. I think this is called a…Win Win scenario. |
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Fewer Options. Off-market properties offer exclusivity but may have a restricted pool of options compared to publicly listed homes. This limitation could pose a challenge if you have specific criteria for your ideal property. Weighing the benefits of exclusivity against potential selection constraints is crucial. Less Transparency. Off-market transactions lack transparency compared to normal real estate deals. With these properties not publicly listed, obtaining comprehensive information about their history, condition, or any outstanding issues can be challenging. No Price Discovery. By avoiding the public markets, “the invisible hand” is removed. Many sellers will quietly list to get a temperature check on the market. Difficulty in Finding Opportunities. Locating off-market properties can be difficult, given they’re not on publicly listed platforms. Timing. It simply just takes longer. Less Negotiability. Many sellers selling off market have a number and will not deviate. “If you want it, you’ll pay my price”. |
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Why would a seller engage in an off-market deal? Especially in a market starved of good inventory? |
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A few reasons.. Less hassle. Less publicity. More control over the transaction. To get a price and not engage with low-ball offers. Wanting to deal only with serious buyers. To test the market. |
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Off-market listing I sourced for clients looking in Clinton Hill. |
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Example of an off-market home that very few people know is currently for sale. The owner tried to sell a few years back and is open to offers. |
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So, how do you find off-market properties? |
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You work with me! I write letters, I call owners, I engage with brokers in the area, I research property records and databases, and sometimes I get a bite!
The off-market arena is certainly an avenue for finding a home, but it should not be the only or primary source for securing your prospective purchase. A good broker will have their ears to the ground searching for any on-market, off-market, or upcoming listings that meet your desired criteria. Stay vigilant, let data drive those decisions and keep those eyes and ears to the ground. |
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575 MADISON AVENUE, NY, NY 10022. 212.891.7000 © 2019 DOUGLAS ELLIMAN REAL ESTATE. ALL MATERIAL PRESENTED HEREIN IS INTENDED FOR INFORMATION PURPOSES ONLY. WHILE, THIS INFORMATION IS BELIEVED TO BE CORRECT, IT IS REPRESENTED SUBJECT TO ERRORS, OMISSIONS, CHANGES OR WITHDRAWAL WITHOUT NOTICE. ALL PROPERTY INFORMATION, INCLUDING, BUT NOT LIMITED TO SQUARE FOOTAGE, ROOM COUNT, NUMBER OF BEDROOMS AND THE SCHOOL DISTRICT IN PROPERTY LISTINGS SHOULD BE VERIFIED BY YOUR OWN ATTORNEY, ARCHITECT OR ZONING EXPERT. IF YOUR PROPERTY IS CURRENTLY LISTED WITH ANOTHER REAL ESTATE BROKER, PLEASE DISREGARD THIS OFFER. IT IS NOT OUR INTENTION TO SOLICIT THE OFFERINGS OF OTHER REAL ESTATE BROKERS. WE COOPERATE WITH THEM FULLY. EQUAL HOUSING OPPORTUNITY. |
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