What’s The Deal With Off-Market Properties?

There seems to be some confusion about whether off-market properties are a good idea or a bad idea, so I wanted to clear this up for you.

An off-market property is a home that is not listed on the MLS.  Both buyers and sellers often think that an off-market property provides a more “exclusive” transaction. Let’s review the pros and cons for both buyers and sellers before you move forward with an off-market home. 

Sellers:  Is an Off-Market Sale Best for You?

There are advantages to selling your home off market, and could possibly make life easier during the selling process. This was something that many sellers undertook during COVID restrictions. However, without listing it on the MLS where it gets exposure to all buyers, you risk the leaving lots of money on the table.

Advantages

• Test market your home and price before it hits the market. You can get an idea of its “sale-ability” and see how the local market views your home and its price. If it’s priced too high, you can lower it before you list it on the MLS and avoid a public price reduction.
• Maintain more control in the selling process. With how its advertised via the internet or just local FB sites. You can get an idea of its “sale-ability” Why would you do this?  Usually if you don’t want your neighbors to know you’re selling or if you have other personal reasons to not want to be “live” across the internet.
• Personal Touch: You personally interact with potential buyers showcasing the unique features of you r home. You can provide firsthand information about the property.
• Avoid the MLS limelight and have a more low key approach if you want privacy. Some sellers find it too overwhelming to have the whole world seeing photos of their home and belongings online.  Or, if you don’t want lots of strangers in your home. Once it’s listed, your home is in the public domain for all to see.
• Sell your home discreetly and more simply if you face a divorce, an estate sale due to death, or another reason for a forced sale. Adding the formal process of selling your home can increase stress when you least want it. This way you can avoid that.

Disadvantages

• Safety– using a certified blue-tooth lockbox insures you know exactly who is in your home.
• Fewer buyers mean less competition for your home.  The more people who see your home, through the MLS and in person, the more likely your home will sell faster and for more money. 
• Legal and Contractual: Real estate transactions involve a significant amount of paperwork, legal requirements, and contractual obligations. In these matters I can help you navigate through the complex documentation, ensure that all necessary disclosures are made, and handle any legal or contractual issues that may arise during the transaction. This can help you avoid potential legal disputes and ensure a smooth closing process.
• Potentially a lower price than what the market might bear.  When you sell your home off market, you’ll never know what it could sell for if it had been listed on the open market where more people could become interested it.  With fewer buyers seeing your home, you are less likely to have a bidding war to drive up the price.

How to Find Off-Market Properties

Here are just some of the ways I find off-market properties for my buyers:

1.)  We belong to an exclusive invitation-only network of the top agents in the
Austin area.  This forum posts information about off-market properties several times a day.

2.) RE/MAX Capital City has been in business since the early nineties. We have a great network of agents who we can reach out to when we have buyers looking for a particular property.  

3.)  We have a pipeline of listings that are not yet on the market.  Sometimes a seller is getting their home ready to sell, or the time of the year is not advantageous for a seller (like around the holidays) and we recommend they hold off.  So I could tell you about those opportunities!  

4.)  We have relationships with developers across the city who we know are working on homes that will be coming on the market soon. They are willing to sell directly to save money on photography, staging, and the time it takes to get a property in show-shape. 

All in all, off-market properties are more likely to benefit a buyer in this market, but this option can be a good idea for a seller who wants a very noninvasive, private sale.  Consider the pros and cons above and always reach out to me to see whether I can help you find something that might not be on the market yet!