Off-market property refers to property that is not openly offered for sale on the market. This means it isn’t on property portals like Rightmove or Zoopla, estate agents aren’t advertising it, and it won’t be available at auction.
The off-market property market is almost a secret property market, where sellers and buyers use alternate communication methods to work out a deal.
Off-market property is not the same as off-plan property, which is important to note. Off-plan property refers to properties being sold whilst they are still being developed or constructed. You may find off-plan properties sold off-market but don’t get the two terms mixed up.
Many investors are choosing to invest in off-market properties as it eliminates the competition that comes with buying on the open market, making the process of purchasing an investment property much less stressful.
Buying on the open market means dealing with the high demand for property, leading to counter-offers, negotiations and other investors chasing the same property. Not only is this a lot of stress, but it draws out the buying process and can lead to investors paying above-market-value prices.
By choosing to buy off-market properties, investors can expect a much smoother buying process with much less hassle while potentially being able to snag their desired property for below-market-value prices.
Sellers may sell their property off-market as it offers a confidential transaction. This means they don’t need to disclose the price they are selling for until the sale is complete and recorded by the Land Registry, which is helpful for those who may not want neighbours, business contacts or other people in their lives to know their house is up for sale.
Celebrities and high net-worth individuals often choose to sell their properties off-market for this reason, to avoid unwanted attention. Their homes are likely to be highly expensive, so they may not want to draw attention to the transaction.
Selling an off-market property also means the seller won’t have to deal with estate agents or their fees, while they do not need to worry about hosting lots of viewings and negotiating with many buyers.
This makes the selling process much easier, so if a seller needs money quickly from their property, they may choose off-market.
Also, off-market homes are helpful for sellers who are dipping their toes in the market and are still on the fence about whether they want to sell. It’s a useful way of gauging interest and how their property might be valued before deciding to sell.
Buyers and sellers choose off-market properties for numerous reasons, and no two properties are sold off-market for the same reason.