07/08/2017| Posted by: Richardson Real Estate, Colac Real Estate

Off market sales in Colac and Elliminyt

Have you heard people talk about an off-market listing and wondered what they meant?

An off-market sale is a term used to define a property that is selling, or has already been sold, without any public advertising.
So what is it and is it actually worth it?

Selling your property off market is not an ideal way to achieve the maximum price – it’s often a last minute choice. Off market means the home can be bought if its owner is presented with an acceptable offer but has decided not to promote the fact.
Those in need of a quick sale are commonly, employment change, relationship/marriage breakdowns, financial reasons and deceased estates.
In most cases, sellers all have one thing in common: they need the sale to take place urgently to allow them to get on with other matters.

What are the advantages of an off-market sale?
To the buyer: A bargain price. There is often little, if any, competition, – you may find you are the only buyer who knows about the silent listing and this exclusivity can mean buying for a lower price than on the open market. More likely the vendor will accept an offer – If the initially submitted offer is below market value and the vendor is in a distressed position, which is often the case, there is greater potential for the deal to be accepted.
To the vendor: A quick sale – if priced keenly. In some cases sold with more terms and conditions. When a vendor wants a low-key sale, the quickie sale is often subject to more conditions including shorter settlement periods, bigger deposits, or inclusive of any building faults.

What are the disadvantages of an off-market sale?
To the buyer: You still have to find a property that meets all of your criteria – location, features, condition and price – so there may be more footwork It’s all about who you know and it takes time to build those insider relationships No marketing materials means you cannot build a visual file of ‘possible’ off market investments
To the vendor: High possibility you will get a lower price than if you advertised your property No chance to go to auction or leverage the enormous passive market of online viewers who regularly surf for investment or owner-occupied properties. You may come out behind- The reality is many vendors think they will save a few dollars by avoiding advertising costs when listing off market but actually cost themselves 10s of 1000s because off market won’t create the competition of a marketed sale.