Those who have used a buyer’s advocate when purchasing property will know how much value they bring to the table in the form of expertise, relationships and negotiating skill. To some buyers, an advocate is simply a source of off-market properties, which may be to their detriment. How? Read on!
How many off-market properties will you show me?
This is a question our Melbourne buyer’s advocates often get asked; however, this is not the right question to be asking. A buyer’s advocate should be showing you the best property available to meet your brief; this includes both on and off-market property. By focusing on how many off market properties are being presented you may save yourself the hassle of having to attend lots of inspections and auctions, but you will also be limiting yourself and not actually buying the best that’s available.
First of all, what is an off-market property?
An off-market property is property that has not been publicly listed for sale. These a properties agents have access to, but for whatever reason the vendor has chosen not to advertise that they are selling.
Why sell off-market property?
There are many reasons people may choose not to list or advertise that they are selling. For instance a high profile celebrity or politician may not want everyone to know what they are selling. Or the vendor might not have even been considering selling. The right buyer offering the right price came along and it made sense. Some may prefer not to pay for an expensive marketing campaign if the agent has a very strong list of motivated buyers. Or they are selling by other means – such a privately or through something like Facebook marketplace (yes we’ve even bought through Facebook for clients!).
Why buy off-market?
Buying off-market property doesn’t mean you aren’t still buying quality. You can still negotiate with the vendor, conduct appropriate building and pest inspections and engage a conveyancer for your legal representation.
By purchasing off-market you may be able to buy at a lower price. This is because there are no competing buyers engaged in a bidding war driving the price up.
How do I find off-market property?
This is the hard part. For the average buyer it’s very difficult to find off-market homes. Short of knocking on doors in the street, how do you find these properties? You could do a letter drop in the street you want to buy. This could backfire with the vendor upping the price though. Or you could contact all your local agents and let them know you’re in the market to buy. Again, you might come across a little desperate and show your hand upfront.
Off-market does not equal a bargain
There are lots of reasons vendors choose not to list their property on the market. And in most cases, they certainly don’t want to sell it for less than its worth. It could be because they don’t want a crowd through their home and prefer a quiet private sale, the property may be tenanted which makes open homes a challenge or they’re in a rush and don’t have time to wait for a full marketing campaign to be created.
Another reason is that the vendor has unrealistic expectations of what they think they’re going to sell for. You might think you’re getting a bargain, when in reality, you’re actually paying a premium or what it would have likely achieved under competition.
Being off market doesn’t make it a good buy
Just because a property is not listed anywhere, doesn’t make it a good buy. There seems to be some misinformation floating around that buying an off-market property somehow makes it better. The truth is, irrespective of how a property is advertised (or not) you need to be assessing the property based on your criteria, recommendations from your buyer’s agent and after conducting your due diligence.
How can a buyer’s advocate help you?
A buyer’s advocate is not just there to find you property that’s not listed. Their main role is to ensure you buy great property, which is going to meet all your needs and ideally, become an asset that’s going grow in value over the coming years. No matter whether the property is on or off-market.
So, how many off-markets properties will we show you? As many as are suited to what you need, your price range and are available. This could be none or this could be ten. And you should be wary of a professional that makes a promise or guarantee on the number of properties they will show you.
Ready to buy great property?