WHY OFF-MARKET PROPERTY SALES ARE HEATING UP IN THE RED-HOT MARKET

It’s no secret that demand for Gold Coast property is outpacing supply with properties selling as soon as they hit the market. Due to the overwhelming demand, a lot of sellers are choosing to cut through the clutter and sell their properties off the market.

What is an off-market property sale?

When a property is sold off-market, the seller doesn’t go through the process of listing and advertising his or her property in traditional marketing channels. With this non-traditional method, the seller will typically work with an agent to limit the exposure of the listing only to internal networks and a hand-selected community of serious buyers.

These high-intent buyers sign up to be notified of off-market properties, getting ahead of the competition before the properties go to market.

With this method, the number of buyers and enquiries is drastically reduced, compared to properties listed on the open market that receive tremendous exposure to buyers, real estate agents, and buyers agents.

Therefore, In today’s climate, many sellers are opting for the more streamlined approach, and off-market property sales are gaining popularity and changing the way property is bought and sold.

Why do sellers choose to sell property off-market?

As previously mentioned a seller may choose to sell property off-market simply to save effort and hassle of the process of listing and weeding through the inundation of enquiries from unqualified or uncertain buyers, additional agents, and others.

Selling a home or investment property off-market has additional advantages as well.

• Save time. The seller bypasses the time needed for the listing on the open market. This could include the photography and content for online sites and newsletters, and then an endless number of stagings, showings, and open homes.
• Save money. Most agents have fees for listing homes, or at least marketing fees that are paid upon sale of the property. Moreso, there are additional costs for photographers, staging specialists, or interior designers.
• Maintain control and access to the property. When listed on the open market, the seller is opening the property to exposure through online sites, social media, and newsletters, and then allowing anyone to view it in person through open homes and viewings. By selling off-market, only a select number of buyers or investors are granted access.
• Interact with buyers who are “quality over quantity”. Buyers in these types of transactions are usually more educated on the process and market, or have come through referral of the agent or other contact, and tend to be more serious about sealing a deal.

“The main advantage of doing an off-market property sale is that there is potential for a fast sale, says Matt Sully, CEO of APFG. “Today, properties are selling faster than owners developers can list them. If they have a network of buyers ready to pay the deposits, then it makes more sense to skip through the riff-raff and sell the properties directly before going to market.”

What are the advantages of buying off-market properties?

The benefits of off-market property transactions can be mutually reciprocated for both sellers and buyers. Sellers can be selective, and likewise, the buyer can also save effort and time as well.

• Save time. Buyers who are keen to buy off-market may and should spend a great deal of time researching the market and current prices and conditions. Where they can save time is by not scouring listings and attending countless open homes. Instead, they register their interest and criteria with agents, and they will be contacted when a property meeting the specification is available. Off-market buyers can sit back and relax, and only need to view properties that meet all their criteria.
• Decrease stress. Off-market listings have a fraction of the number of buyers vying for viewings and making offers. Therefore, off-market buyers don’t need to worry as much about a rejected offer or a bidding war.
• Save money. Congruently, the off-market listings are not subject to the same level of competition-driven price increases that the open market can bring. Well-educated buyers who make a fair offer for a property can usually expect the seller to accept, without the inflated prices.

“For serious buyers, off-market properties are often where you can find tremendous value,” says Sully. “This is because the developer or seller is skipping the hassle of open-market listings and just wants to sell the units or properties to buyers who are ready and willing.”

At APFG our portfolio of cash-flow positive properties includes select developments of off-market listings. Contact our team to learn more and to register your interest today.