The Pros and Cons of Off-Market Property Sales

With the property market booming at the moment, off-market property sales are becoming increasingly popular for both buyers and sellers. For those who have never been part of an off-market property deal, it can be hard to understand if they are the best choice for you. There are pros and cons for both sides of the transaction, let’s explore these to see if off-market is the best decision for you.

When selling your property off-market, this process does not involve public advertising in traditional marketing channels. This means the notice of sale is only shared with a limited number of potential buyers from within the agent’s database or through listing on off-market platforms.

Off-Market Pros

It’s fair to assume that off-market deals are more beneficial for the buyer as there is reduced competition and room to negotiate. Yet as off-market transactions are becoming increasingly popular, this non-traditional approach may offer potential upsides for both parties.

For the sellers:

• From the vendors perspective, this option reduces the stress of putting the property on the market. If you’re looking to keep costs low, then this option may be ideal for you as you can save time, hassle and money with no open houses and minimal inspections, you’ll also save on advertising, signage and other marketing costs.
• The vendors may also have the potential to achieve a fast sale at a great price, as off-market avoids the length of a normal sales campaign.

For the buyers:

• An off-market deal is a great way for the buyers to pay a fair price for the property by avoiding the competition-driven price inflation that is often seen in the open market.
• The transaction is usually less stressful for both parties involved, as the buyer is able to make a sensible and considered decision without the fear of losing the property to someone else.

Off-Market Cons

Whilst the reduced stress is attractive in off-market property sales, there are also some important negatives to consider for both parties.

For the sellers:

• The most obvious and costly disadvantage of selling off-market is the risk of not getting the highest price for your property. This is because there is reduced competition among buyers. Additionally, the lack of a marketing campaign reduces how many potential buyers will view the property. The general rule of thumb is that the more eyes on your property will usually equate to a higher sale price.
• There is a risk for a longer sale process, this is due to only a limited number of potential buyers viewing the property.

For the buyers:

• Buyers who are choosing to only purchase off-market will be limited to the number of properties available. This is because it is not the preferred option for most sellers who are wanting the competition-drive price inflation from the open market. As such, buyers choosing this option will need a high amount of patience as they wait for the right property to come available off-market.