5 Reasons Vendors Choose To Sell Off Market

Selling off-market refers to a sales strategy where a property is sold without being publicly advertised. Instead, the sale is handled discreetly and marketed only to a select group of potential buyers. There are several reasons why vendors choose to sell off-market, including:

1. Privacy

There are plenty of people who detest the idea of neighbors snooping through their personal items when their property is up for sale, a quiet off market sale is a perfect way to avoid this. The vendors may be selling due to a divorce and a publicized campaign could expose themselves to invasive questions. Perhaps the vendor is downsizing, moving into aged care or has passed away and their immediate family wants a quick hassle free sale to a pre-qualified buyer.

2. No marketing spend required

One of the biggest advantages of selling off-market is that it eliminates the need for marketing expenses. This is particularly beneficial for vendors who are looking to save money and avoid the costs associated with marketing the property. Marketing schedules can range from $5k-$30k depending on the location of the property and often needs to be paid up front unless you engage a ‘pay later’ option.

3, No presale works required

When a property hits the market, in order to maximise the result it needs to be presented in its best light. That means spending thousands of dollars on presale works. Painting, new carpet, light fixtures, window furnishings, polishing floor boards, landscape gardening… the list goes on. This process can rack up to over $50k fast. Being ex agents, we are very aware that this spend is usually made back on auction day. Often three or four times over.. However, it can take weeks if not months of time in preparation, can be stressful coordinating trades and considering it will largely need to be paid for up front, may not be a viable option for vendors who don’t have the capital.

4. Fast and stress free

Considering it can take weeks or months to prepare for an on market sale, usually incorporating vacating an existing tenant if there is one in place, and then another 30 days on market for a standard auction campaign, followed by the settlement period which can be anywhere between 30-180 days…. For vendors not currently occupying the property it could sit vacant for months, costing them in monthly mortgage repayments with no return. Off market properties are usually sold on terms that suit the vendor rather than the buyer, and commonly with tenants in place which may save the vendor huge amounts of time and money.

5. Obvious price precedence has been set

One reason some people take their property to market is to find out where the market sees the value of the property. The corelogic report may say one thing, the bank something different, the real estate agent different again and realestate.com.au property pricing section another all together! Taking it to market is a tried and tested way to understand the value of your home.. However, when a similar property sells in the street or block.. It gives you pricing precedence, and therefore an indication of the value you could sell it for off market.

So as you can see there are plenty of reasons which may encourage vendors to sell off market… and plenty of reasons for buyers to engage us, so we can uncover the dream property they may have never known about without us!

We hope this was an interesting read!