Off Market Multi-Family properties in Worcester
The Worcester Multifamily market is quite complex. On the surface it looks like there aren't that many multifamily properties for sale. About 2 months ago we averaged 40 Multis for sale at any one time. That number has creeped up to 67 right now. Last week we were at 73 at one point.
That does not tell the true story.
There are at least 73 multis for sale that are not on the MLS at reasonable prices.
As a Realtor I speak with property owners every day who are interested in selling but do not want to put their properties on the market.
Why not put the property on the market?
- They don't want their tenants to know, as they may ruin the relationship they have
- They aren't quite ready to sell, but are almost there. Perhaps they want to do a 1031 exchange and need to time it correctly.
- They are really testing the waters because they tried a cash out REFI and they got a low appraisal, so they have trapped equity in the property
So they come to an experienced Realtor to help them navigate the process prior to going on market. Other agents do so as well. I would say that we know about 30% of the Multis prior to them hitting the market. Also, we often have lists of as many off market properties as there are on the MLS.
How does someone know how to price an off market property?
This seems like it would be hard to do. When you see a property in the MLS you either agree or disagree with the price. Often agents price their houses low hoping to get competition to drive up the price, right now that is typically 10%. Other agents put a real price and hold steady until they get it. Others put a "make me move" price and sometimes they get it.
That being said it is no harder to walk into a property and price it off market then a property with a suggested MLS price.
The key is to be educated and work with professionals who are active in the market and have seen tons of properties and are constantly refining their skills.
Make sure you work with an agent who is constantly working both on the MLS and off. If they are waiting for the properties to hit the MLS it is often too late.