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Purchasing off-market in blue-chip areas

14 February, 2024 / Category: Blog

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If you’re searching for a property in the $6 million plus range, you will have noticed that some properties are selling without them even hitting the market, and you only find out once the transaction is complete. It’s not uncommon for high-end properties in blue-chip suburbs to be sold off-market, and we’ve noticed a spike in off-market sales in areas such as Brighton, South Yarra, Toorak, Armadale and Albert Park. Navigating this market as a buyer can be confusing and very time-consuming.

Another trend is the sale of properties off-market that are nearing completion of construction. Sellers offer buyers the opportunity to purchase a brand-new, untouched home without the associated construction risks. In some cases, buyers have a brief window to customise fixtures and finishes before finalising the purchase and moving in. This allows buyers to personalise their new home without undertaking the uncertainties of a construction project.

So, what constitutes an off-market property, and what steps can you take to ensure you see all market opportunities? This article will delve into this to provide a comprehensive understanding of off-market transactions and strategies to avoid missing out on them.

What is an off-market property?

An off-market property is a property that is available for sale but not publicly advertised. It may lack a visible “for sale” sign, but the vendor is willing to sell. Typically, off-market sales involve a seller opting not to advertise through conventional channels, entrusting their real estate agent to connect with potential buyers through alternative means.

Why would someone sell off-market?

In many instances, off-market listings are pre-market opportunities. The seller might be gearing up for an official on-market campaign but is open to considering offers beforehand, aiming to save time or gauge market interest. If unsold, these properties may later hit the market when prices have risen, competition is fiercer, and prices are higher.

Alternatively, a vendor may opt for an off-market sale due to various reasons:

  1. The property may not be presentable, and the owner needs more resources or time to address this.
  2. They may have privacy concerns, especially for well-known individuals who prefer to keep their circumstances confidential.
  3. The vendor seeks a swift and hassle-free transaction.

When a real estate agent handles an off-market property, they often reach out directly to their top clients to find qualified leads, including trusted buyer advocates or investors they’ve worked with previously. They may also contact buyers who recently missed out on similar properties the agent had for sale. They aim to sell the property as quickly as possible for the highest price.

How can I get access to off-market properties?

Real estate agents often engage with hundreds of would-be buyers daily, and you have to make a big impression to get on top of their calling list. Professional relationships aren’t built in a day, which is why it’s beneficial to go through a buyer’s advocate. We’ve been working on our relationships with real estate agents for over 20 years. Real estate agents also know that advocates work with serious clients who are hot buyers, so they are often the first people who get called to view and buy off-market properties.

Alternatively, staying top-of-mind with multiple local real estate agents is crucial to ensure you’re notified when suitable properties arise.

Why buy Off-Market?

  1. See the whole market: even if an off-market listing isn’t right for you, it’s good to know everything out there, not just what’s advertised publicly.
  2. Exclusive Access: Accessing off-market properties provides a unique advantage as most buyers won’t have this privilege. This exclusivity reduces competition and enhances your chances of finding the perfect property.
  3. Negotiate a good deal: If negotiated skillfully, off-market deals can often result in favourable terms for buyers. However, it’s important to note that vendors of off-market properties may have high price expectations. Effective negotiation tactics and price conditioning may be necessary to secure a good deal. Sometimes, the vendor’s priority is a quick, quiet sale, not necessarily maximising the price. 

Do you want to see the whole market, including off-market properties? Contact our Buyer’s Advocacy team today for a free 15-minute discovery call to discuss how we can help you find your dream home.

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