What is an off-market property? The pros and cons of off-market real estate

Thinking about buying or selling a property off-market? Off-market properties are properties for sale that aren’t advertised to the public.

What is an off-market property? The pros and cons of off-market real estate

Thinking about buying or selling a property off-market? Off-market properties are properties for sale that aren’t advertised to the public.

They offer benefits - like privacy for vendors, and potential savings buyers - alongside some drawbacks. Here’s everything you need to know about off-market real estate.

What is an off-market property?

An off-market property is a property that has not yet been marketed to the public. It is effectively a pre-sale reliant on real estate agents and word of mouth instead of major real estate platforms.

Off-market properties can be harder to find for buyers, who will need to work with multiple buyer agents.

The low-profile nature of the sale may appeal to high-profile people. Off-market sales are also referred to as silent sales or hidden listings.

Thinking about buying an off-market property? Speak to a UNO broker today.

Pros and cons of an off-market property

Whether it’s better to buy off-market remains debatable, according to Soho.

Nosy neighbours? Off-market listings can offer privacy. This makes them appealing to high-profile people or landlords with tenants.

Avoiding the masses can also be an effective way to filter out uninvolved buyers who could potentially waste one’s time.

Off-market real estate sales generally move faster, potentially saving on marketing costs as there isn’t a lengthy marketing campaign attached to the sale.

There are some drawbacks, though. Because the property isn’t on the open market, it may not attract the highest price possible.

Off-market properties sell for 2.6% less than listed properties, according to a PropTrack Report. This equates to $18,200 on a house valued at $700,000. Whether this is a loss or gain depends on if you’re talking to the buyer or vendor.

Homebuyers seeking to make a strictly off-market purchase will also need patience as stock can be harder to find.

Is searching for houses off-market exclusively a good idea?

Only looking at off-market houses for sale may be appealing to buyers in competitive markets due to the potential savings a vendor might offer in exchange for a quick sale.

Markets are slowing, though. The cash rate sits at a 10-year high of 3.1%. Meanwhile, auction clearance rates in the September quarter are down to 54.4% - a 15% decrease from the year prior - according to CoreLogic.

The sense of urgency associated with off-market real estate may not be worth the risk, particularly for first-time buyers.

Real estate is potentially the biggest purchase you will make in your life. It should not be taken lightly nor rushed.

Read more: A guide to buying your first home.

A step-by-step guide to buying an off-market property

  • Calculate how much you can borrow with UNO’s borrowing power calculator
  • Submit paperwork to gain pre-approval for a mortgage
  • Contact local buyer’s agents in the area you want to buy
  • Wait for the ideal off-market property to come along
  • Make an offer and settle
Sources
soho.com.au/articles/whats-an-off-market-propertywww.canstar.com.au/home-loans/off-market-property/www.afr.com/wealth/personal-finance/secret-property-deals-surge-as-residential-market-slows-20220303-p5a1d0www.corelogic.com.au/our-data/auction-resultsrea3.irmau.com/site/PDF/5fa9fa3c-0e63-4099-a3cf-32d867d9f1a3/PropTrackOffMarketSalesPerformanceReport2021unsplash.com/@rwlinder


Book Call Now

Book Call Now

UNO home loans

Need help with your home loan?

UNO Brokers are available night and day for a quick review or your situation and bring expertise that will support better decision making that will save you time and money. Book in a quick call when it suits your busy schedule

Get Started

Related Articles

TESTIMONIALS

What our customers are saying

A M
June 21, 2024
I only have praise from my Uno experience! I was a broker sceptic, having done all of the hard work myself for my first two property purchases and sale. I'm now a proud broker advocate having used UNO (Karis Churchill) for two refinances and purchase. The value add Karis brought cannot be underrated! Not only has Karis got me the best rate, with a bonus cash back (nearly unheard of in this climate), she has done it with the least back-a-forth and with the least administrative burden on me (the thing that can deters people from refinancing to begin with). Karis is always on top of everything. Karis knows her stuff. She is the most responsive of any professional service provider I've ever used (my banker never text with an update at 7pm on a Sunday) without being overbearing. You know she's got your back and in my experience the value speaks for itself. Thank you to the whole UNO team, thank you especially to Karis.
Read more
Leanda Cawdry
June 8, 2024
Very pleased with the outcome of this process, Michael Parsons and his team at UNO were helpful, communicative, and took all the stress out of the process of finding me a refinance deal that met my needs. Would definitely recommend Michael and UNO, and I already have!
Read more
Glen Matthews
May 29, 2024
Regarding UNO Home Loan services. I had great experience with uno home loans, Michael parsons was my broker for UNO Home Loans we had excellent communication throughout the whole home loan application. If I had any questions on home loan application which were many were answered in great detail. He had the time to assist me in filling out endless application forms at anytime through the day or night which made the application process stress free. So I would strongly recommend Michael parsons from UNO Home Loans to try his services you will not be disappointed. Thanks to Michael parsons I have the lowest home loan interest rate I could ever hope for which I particularly ask for. It’s was a pleasure working with him. And will be using his services in the near future.
Read more
Gillian Anderson
May 28, 2024
Thank you to Michael and UNO for their help in securing our home loan. I like the way they break everything down in simple terms to ensure that you can make the right decision. Michael was polite and very patient to help us get things across the line. We are now sitting in our first home away from rental circus. Can't recommend them enough. Thanks Michael and thanks UNO
Read more
Andy Song
May 17, 2024
Amy has been absolutely wonderful as a broker. I would not hesitate one bit in recommending her services.
Read more
Troy H
May 13, 2024
Scott Wilkinson did a great job as my broker. He was very patient and always happy to answer my numerous questions throughout the considerable period of time that it took to secure a suitable property. Would certainly recommend Scott and the team at UNO for anyone seeking a broker.
Read more
Elvin Singh
May 10, 2024
First time I have used a Broker and I must say Andrew Wyers and his team were amazing to work with and handled my refinance from a Big4 bank. He was able to understand my needs and find a lender that will be able to help me grow my investment portfolio. Andrew and his team kept me updated as part of my refinance journey and made the process super easy and I was able to refi to new lender in under 2 weeks. Would highly recommend Andrew.
Read more
Nadine Steffens
April 19, 2024
Scott and the team at Uno are absolutely 💯 amazing. I don't think I could have done my loan on my own. They are highly motivated and I do recommend them.
Read more
Andrew
April 16, 2024
Dealing with Scott Wilkinson was an absolute delight. Scott is tenacious, hard working and readily available. He made a very stressful process for me and my partner smooth sailing. Would highly recommend.
Read more
Liam Sugiono
April 15, 2024
Amy and her team were efficient and knowledgeable as our broker. They were easily contactable and ensured all our needs were met.
Read more
Mike Vincent
April 10, 2024
Andrew is the best broker I have worked with and one of the few people who understands the investment journey from both a personal and professional standpoint. Andrew is an asset to anyone from a first home buyer to a seasoned investor.
Read more
Yu Su
April 9, 2024
Amy was very help and quick respond when I have questions. Really recommended.
Read more