What to Look for When Buying an Off-Market Property

Buying a house can be an excruciating process, especially with the constant changes in the real estate sector. Visiting houses daily, dealing with competitor buyers and making quick decisions, so as to not lose a good deal may be getting the worst out of you. More and more buyers turn to off-market listings, as they provide quite a selection of interesting properties.

Off-market listings can be a great opportunity to find estates you might not know are for sale and get an actually good deal on it. This “hidden” market is not only favourable when looking for a good deal, but also when trying to keep the transaction as discreet as possible. Many off-market sellers are looking exactly for this, when pocket listing their houses. Fewer interested buyers also means less competition also, giving you time to prepare your offer.

What Does Off-Market Mean?

Off the market properties are houses that are not listed online or with any real estate agency. The seller might choose to keep the property off the market for various reasons. To test market the house before it hits the market, this way they can see if they are pricing it too low or too high and adjust the price when they decide to go on the market. They might be wanting to have more control over the selling process, avoiding a parade of buyers coming and going every day, or simply keeping a discreet profile when they don’t want to discuss the selling reasons with every curious acquaintance. If you are looking for an exclusive property and don’t know where to find London prime properties for sale, going off-market searching might be the best option for you.

There are typically two options for off-market opportunities: pre-market sales or true off-market. Pre-market means the real estate agent has exclusive access to a property that will get on the market in the near future, while true off the market options are those who never intend to go on the public lists.

Advantages of Buying Off-Market

Besides the obvious advantage of finding a hidden gem that not many people know about, off-market purchasing has many other positive aspects. Because the house is not listed anywhere, there will be fewer buyers, thus meaning the competition is less fierce. This means you may be able to get a better deal on the property. Having the option to negotiate directly with the seller is also an advantage that could potentially get you a better price. When houses are listed on multiple platforms, this means the seller can profit from the interest of having more potential buyers, but with off-market properties, the power can be shifted on the buyer’s side.

Because the house is not on the market, this means there is less time pressure when making the decision. The competition is less tight and you won’t have to make a decision under pressure, out of fear of losing a good deal. Homeowners may not be in a rush to sell which gives your time to do proper research and propose an offer to the seller. They might be far more relaxed and open to negotiation.

How to Find Off-Market Properties

Believe it or not, off-market doesn’t necessarily mean secret. Nowadays, there are many other ways to find off the market properties, besides asking left and right and hoping someone knows someone who is selling a house. There are a few exclusive online communities that list such houses. You could also talk to a real estate agent, although that might seem a bit contradictory. But real estate agents have access to pocket listings or even have a separate portfolio for off-market properties. Many pocket listings are held by the so-called dual agencies, who represent both the buyer and the seller and intermediate the contract. Keep in mind that dual agencies work on commissions and the bigger the sale, the larger the commission. Make sure the agent has both yours and the seller’s best interest.

Keep in mind that the seller might be keeping the house off the market, because they are looking for a specific type of buyer. This usually happens in upscale suburbs, where the neighbours have already formed a more private community.

Tips for Making the Right Choice

Having the time factor on your side means you can focus more on the other aspects of the deal and make sure you make the right decission. Here are a few tips to help you buy off-market, especially if you are looking for an exclusive deal:

Don’t be afraid to go door-to-door: Explore the neighbourhoods you like and ask around to find if there are any places for sale that may not be on any type of listing and simply approach the homeowners.

Look for vacant houses: Spot any houses that look vacant and ask around for any information of the owner. Chances are they might be looking to sell, but are in no rush and the house is not listed.

Keep an eye out for auctions: bank-owned properties are constantly put up for auctions and you may get a better deal than if you were to buy the house directly from the homeowner. Keep in mind that these properties might not be in the best shape and you might need to invest a bit more work and money in them.

Don’t forget inspections: before deciding to invest your money, make sure you have hired someone to conduct the required inspections. This will give you an idea of what possible structural problems the house might have and how much would they cost. Real estate agents usually arrange these types of inspections, but if you are not working with one, you might have to find a qualified person by yourself.

Keep a realistic overview: Don’t rush into decisions just because you found a good price. Analyze all the aspects of the purchase, before finally closing the deal. Compare offers, don’t be afraid to negotiate and don’t stress if it takes more time than expected.