Real Estate Agent · Tampa, FL · Member since 2018 · 43 posts · 39 votes
Either on the acquisition or disposition side. As an Investor or Agent how do you feel about On vs Off market deals?
Buyers, why would you prefer Off market deals vs On Market? At the end of the day is there really that big of a discount on the price? Do you feel you find better deals?
Sellers, why would you want to got with an Broker listing Off market vs a agent who would list "On Market" such as the MLS?
I am curious to hear everyone's opinions and experiences!
Investor/Agent/Entrepreneur · Dallas, TX · Member since 2016 · 464 posts · 564 votes
6y
As an investor, I love off market deals. Especially my first few, they were all off market with great discounts. It means there are less eyeballs looking at it and competing with me, even more so if it is not a part of some agent's "off market buyer's list". Depending on how the deal is sourced, especially as a part of some direct outreach campaign, you could see even higher discounts if they were not anticipating to sell but were convinced and now you've got a discounted property. Wholesaling wouldn't be a business if there weren't discounts to be had from getting these off market deals like this, so I think it is very valuable. In a hotter market, I think that margin definitely closes, where even off market properties are not bringing in the same deep discount as before.
Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
6y
As BROKER: No problem with off-market deals. I don't have the control with a listing, but there is a lot less hand-holding and marketing and sorting out good from bad I have to do. Usually it means I don;t have to work with other brokers, which TBH, are my biggest headache sometimes.
As BUYER: I think the odds of you being the only guy making the offer and no immediate competition, works better for you price-wise. Depends on how well informed the seller is.
As SELLER: I've always told sellers, you increase your odds of getting the best price with a well-advertised listing. However, you are marrying your broker for the period of the listing. I've also told sellers, that if you sign a listing, have the broker send you a link to the property advertising it that ANYONE can access. I have an issue with some of the bigger houses that want both sides of the commission. I don't know how best to handle this, so I usually have 2 comm rates, co-op (w/ buyer broker) and NO co-op (only the listing broker = 50% of co-op rate).