12 November, 2014 / Category: Blog
If you are new to buying real estate the term “off market property” can be a bit of a mystery. But the idea is not as cryptic as it sounds. Simply put, the term “off market” generally refers to a home that is being sold without first being listed. Instead, property information circulates among a connected network of real estate agents and their vetted clientele. In some cases, the owners of these homes may not have initially intended to sell, or perhaps decided to do so unofficially—quietly hinting at their home’s availability among a small, contained network of contacts.
Once the word is out, the game is on.
Behind the scenes, real estate agents are bidders too
When it comes to selling property, the bidding can begin well before a property goes to auction. Once they hear of a vender that is thinking about selling, real estate agents will often battle one another in order to claim the property listing. If one agent is aware that another is also sighting for the business, they will approach a buyer’s advocate to offer the vender what they need—interested buyers who want what they’ve got to offer.
Advocates know the buyers
The buyer’s advocate is the real estate agent’s first port of call when it comes to enticing a vender with buyers who are ready to commit. Once an agent has explained the property to the advocate—including its price, size and location—the advocate can then recommend buyers whose search criteria comfortably fits the bill. Where the real estate brings sound knowledge of the property itself, the advocate offers understanding of the buyer best suited to make a private bid.
Buyers get first choice
By now you might be thinking, but what’s in it for me? The short answer is: a lot. Anybody who has searched for property understands the competitive nature of the hunt. Countless auctions can be attended without gaining any headway; other buyers can outbid you, and deals often fall through. But buying off-market gives you a few key advantages:
While making off market purchases may seem stealthy, the nature of the transaction is incredibly beneficial to all parties involved. Real estate agents can offer vendors ideal buyers, and advocates can offer buyers ideal properties. By avoiding advertising, open for inspections, and stressful auctions, both the seller and the buyer can also save themselves a lot of time, and a lot of hassle. In the end, everybody wins.
Is buying off market the right choice for me?
Off market transactions were once rare, but in an age where privacy is perhaps the biggest luxury of all, these types of sales are on the rise among many buyers and sellers of prime Australian real estate. 100% of the properties Infolio purchased in 2013 and 2014 valued at over $3 million were bought off-market—unadvertised and unavailable to the general public to view and to consider. So, if nothing on the property listings currently interests you, it might be time that you too went “off market” to find your new home. There’s no need to wait for the ‘for sale’ sign once you’ve made the right connections.
If you’ve decided that an off market purchase would be perfect for you, our buyer’s advocates are always happy to assist.