Are you looking to sell your property but feel overwhelmed with the process of marketing it?
You shouldn’t worry as it’s still possible to find buyers when putting off market properties for sale. However, before we dive into how to find buyers for off market properties, let’s first discuss what “off market” actually entails.
What does off market mean?
Simply put, off market real estate or “pocket listings” are properties that are not listed on the Multiple Listing Service (MLS) or marketed to the broader public. This means that they are not available on any mainstream outlet. In other words, off market properties are sold without publicly advertising them on the open market to drive interest from potential buyers. In some situations, one may find selling a house off market a better option than the conventional listing process.
It may be due to the following reasons:
1 – To Maintain Privacy
High-end sellers like celebrities or people going through sensitive personal matters like a divorce may want less publicity when selling their property. Therefore, they may choose to sell their property off market as it is a less intrusive option. They will be able to avoid any unwanted publicity and maintain the confidentiality of the transaction. For sellers who don’t want exposure, finding buyers for their off market properties can help maintain anonymity.
2 – To Avoid the Hassle Associated With a Conventional Sale
Sometimes you may be busy or simply don’t want the stress that comes with coordinating staging, viewings, and open houses. Selling off market is a great way to avoid such tasks and minimize stress as you are more likely to be dealing with fewer but serious buyers. With the ongoing COVID-19 pandemic, selling properties offline has been an even more popular trend as sellers try to reduce unnecessary showings.
3 – The property is damaged
If a property is damaged and the seller doesn’t have the finances to pay for repairs, the property may not be in the ideal condition for a traditional sale. Therefore, the seller may choose to sell it off market.
4 – Facilitate a Quick Sale
Sellers who want to get the property off their hands as quickly as possible can avoid a long sales cycle and sell quickly by going the off market route. They don’t have to wait to take professional photos and list the property for sale. For instance, a seller who wants to quickly sell their property and relocate overseas for work may consider this option. However, with little exposure, the property could still end up taking a long time to sell.
5 – Reduce Vacant Periods
When a landlord wants to sell a property they will typically serve a notice to end the tenancy before listing the property for sale. Once the tenants have moved out, it becomes easier for the seller to clean the property and do any required repairs before taking marketing photos. A vacant property also allows for viewings without disturbing the tenants.
However, there will be no rent coming in until the property sells. This means that the owner will have to cover the property’s recurring expenses for that period. These expenses can continue to mount up and cost the landlord a lot of money. For off market properties for sale, the property’s details can be given to potential buyers without the tenants being given notice. Before the sale is complete, the tenants can continue to occupy the house and pay rent.
6 – Save on Selling Costs
Off market properties for sale usually sell cheaply as you don’t have to invest money in real estate marketing. You’ll avoid the costs of taking professional photos, staging the property, and improving curb appeal. Most investors seeking off market multifamily properties for sale will be focused on specific criteria and not decorations. Since there is only one agent involved, you’ll also be able to negotiate a lower sales commission.
7 – Prevent the Listing from Going Stale
If you list your property and it ends up sitting on the market for too long, potential buyers will often be wary of it. Therefore, they may try to submit lowball offers. Selling your property off market reduces the chances of the listing going stale.
8 – The Likelihood of Getting a Better Price
Unique off market properties for the sale, especially in a seller’s market, have an air of exclusivity for the buyer. This can add a sense of value and urgency that may lead to the property selling at a better price. However, this may not be the case in a buyer’s market.
Drawbacks of Selling Your Property Off Market
Off market homes for sale also have drawbacks to sellers. The biggest risk of selling off market is the possibility of selling at a lower price than if you had listed it on the MLS. Due to less exposure to potential buyers, you probably won’t have a bidding war situation. Therefore, the selling price may be lower than if the property was fully marketed. Since there’s limited exposure, the seller also has to own a property that many buyers would be interested in.
Setting the Right Sale Price
It’s important that you conduct a comparative market analysis to determine the right price to sell your property. This involves looking at what other similar properties in the area (real estate comps) have sold for recently. You don’t want your sale price to be too high compared to the market average as it may repel potential buyers. If the price is too low, you may get to sell the property quickly but leave money on the table.
How to Find Buyers for Your Off Market Properties
If you are wondering how to find cash buyers for your off market property, here are some methods to consider:
1. Word of Mouth
One of the easiest ways to find buyers for your off market properties is through word of mouth. You can begin by exploring your contacts of friends, family members, and colleagues. Even if they don’t want to buy themselves, they may know people who would be interested in buying.
2. Build Your Network
If you have been in the real estate industry, you know that real estate is a people business. To be successful, you need to have good relationships with real estate agents, real estate attorneys, contractors, investors, and more. When it comes to finding buyers for your off market properties for sale, you can do so through your existing real estate network.
You can build your real estate network by joining local real estate clubs and landlord organizations. This way, you can meet a variety of potential cash buyers. The Internet also provides numerous opportunities for networking from the comfort of your home. There are several online real estate forums and social media groups you can join.
3. Hire a Real Estate Agent
Real estate agents can help you find qualified buyers for off market properties for sale. An experienced real estate agent will have established relationships with a network of agents and potential buyers. If you work with a realtor with a strong buyer network, it will be easy to make a quick sale. For instance, they may have contacts of buyers who missed out on recent sales and would be interested in buying your property. Your agent will also contact potential buyers directly.
However, it is important to keep in mind that agents who have experience dealing with properties on the market may not necessarily be of great value to you. It’s important to find a realtor with experience dealing with off market properties. Interview different realtors in the area to ensure that they have dealt with off market properties for sale before and can provide a track record of successful off market sales.
4. List the Property on the Mashvisor Property Marketplace
Listing your property on the Mashvisor Property Marketplace is the most effective way to get buyers off the market in the US housing market. While most houses for sale websites contain just MLS properties, more comprehensive platforms such as Mashvisor offer the option of listing your house as an off market property.
By listing your property on the Mashvisor Property Marketplace, it has the chance of being viewed by potential real estate investors. This is due to the fact that Mashvisor is an online marketplace that is specifically geared towards real estate investors.
5. Real Estate Wholesalers
Another great way to find buyers for your off market properties for sale is to find ‘real estate wholesalers in your area. These are people who find real estate deals, get them under contract, and assigns the contract to another buyer for a profit. This may be a quick way to sell your property. However, the problem with this is the difficulty in finding professionals who specialize in wholesale real estate. Experienced real estate wholesales have a robust network of investors.
Here are a few ways to find real estate wholesalers:
- Network with other real estate investors, agents, and other people in the industry
- Look for “We Buy Houses” signs
- Search on wholesale real estate websites
The Bottom Line
Selling your property on the off market has its own pros and cons. If you are convinced that this is the route you want to take, you now know different ways to find buyers for your off market properties for sale.
Check out Mashvisor’s blog to get more valuable real estate insights.