What Is Off-Market Property?Property Investment Basics
Off-market property offers an intriguing option for investors looking to invest in the property market, but it can be exclusive and somewhat confusing for newcomers to understand.
While it is a similar term to off-plan property, they refer to very different kinds of properties.
If a property is described as being off-market, it is not being offered or listed on the open market for potential buyers, with the deal and transaction happening behind closed doors.
You won’t find it on property portals or being advertised by estate agents, with the seller instead working through alternative channels to sell their property. Because of this, off-market is often considered a secret property market.
More About Off-Market Properties
Sellers may choose to go off-market for a variety of reasons. They might be dipping their toes into the market to see what kind of price they could get for their property, or they might want to deal with the high demand you are likely to see on the open market.
Buyers often search for off-market properties as they may prefer discretion when buying, or to eliminate the competition that comes with the open market.
No information on the sale is recorded publicly until it is complete, which means there is a level of secrecy and discretion for both parties involved.
For this reason, you often find celebrities and high-profile individuals selling and buying off-market properties to avoid drawing attention to their business.
As they are not advertised through traditional means, it can be hard to find off-market properties for sale if you do not know what channels to go down.
Property investment companies often have exclusive access to off-market properties for sale, so contacting them to see what is in stock is a method many go down when they want to find off-market properties.
Networking with landlords and property owners is another common tactic, as peers may know of properties for sale that aren’t on the open market that could be of interest to others.
This could be through social media, or through traditional methods like email and meeting people in person.
Alternatively, contacting property development companies and developers directly to see what projects they currently have for sale can give investors a direct link to potential sellers of new-build properties, meaning they can cut out middlemen who might cause issues.
Off-market properties offer a more streamlined and smooth sales process for both buyers and sellers, which is why they are becoming increasingly popular for property investors who are already experienced in buying and selling.
They take away much of the hassle such as competing with other buyers and going to or organising house viewings which can cause a lot of stress and complications for both parties when it comes to the property market.