Recent months have seen increased activity amongst off market property sales. This presents both an opportunity and a challenge for buyers, in that buying off-market offers significant benefits – but sourcing the cream of the off-market crop requires an intimate connection to the local market and its participants.
Off-market listings represent a significant portion of the premium property market, which means that buyers with limited access to this pool are unable to participate in what is often the most rewarding arena.
What is driving this phenomenon?
- Vendors are wanting longer settlements (times) to secure the next home
- For empty nesters it is often the case there is nowhere to go – lack of suitable accommodation/property in the suburbs they wish to buy in (usually the suburbs they have lived for 20+ years)
- Often empty nesters don’t consider alternatives to apartment style living (there is a short supply of luxury apartments) which most are seeking – developing a buying strategy in this case can help in presenting alternative property types that deliver to the requirements.
- Often vendors have unrealistic expectations and deals can be difficult to get done unless motivation sets in for the vendor. In this case, knowing which agents have the best and most likely tradable off market properties is a great advantage.
- Many vendors like to have more control over their property path and selling off market offers this control through private appointment only they can control settlement, save money on marketing and styling and avoid the public and frenetic scene associated with auctions.
- Privacy from friends, business and family can be a reason also to go off market.
What is the net result for buyers?
Having access to the full market of property for sale expands the opportunity for an outstanding purchase through greater choice, less competition and increased potential to negotiate quickly and effectively without having to compete at auction.
How can buyers best capitalise on this opportunity?
The key to off-market property is access. Enlisting a professional with access to the community of local agents representing off-market vendors is critical. Without access to the people driving this market, there is little, if any, potential to capitalise.
A good buyer’s agent will open the door to this market and ensure an efficient and painless process by taking control of the sourcing and viewing of potential property – saving you time and stress.
Not only this, but at Rose & Jones, our clients leverage the independent analysis we provide to support the property’s value for on or off market purchase. We derive a square meter value based on a number of criteria – and ensure that our clients secure the property that is right for them at a price that is in line with true value.
They will understand your personal and commercial objective and develop and execute on a strategy that delivers an optimal outcome.
A recent example:
We recently sourced and secured two off-market units within 10 days for a client who wanted to exchange and settle before the EOFY. Settlement took place on June 28, both had tenants signed up before settlement via our property management and have taken care of the depreciation schedules for the client.
Both properties’ purchase prices were supported by our independent analysis and the valuations came in on the purchase price. The client had zero vacancy and we coordinated the entire process including liaising with inspectors, lenders and solicitors and of course the agents.
The off-market property opportunity can’t be ignored. We welcome buyers to contact us any time to discuss their needs and to share how an off-market transaction could be the best purchase they ever make.