The property market is so competitive these days that everyone is pushed to look for better alternatives. Unfortunately for buyers, stress and risks a
The property market is so competitive these days that everyone is pushed to look for better alternatives. Unfortunately for buyers, stress and risks are a given to those who wish to sit at auctions or go through the regular public process. Many believe backdoor deals behind closed doors could provide a more sensible solution.
In short: purchase an off market property.
This may sound like one of those shady deals with unknown strangers, but in truth buying off-market is a legitimate transaction sans the noise and competition of the regular market. It may not be as widely acclaimed as the traditional auction route, it is still considered by many as “standard practice.” And just as properties differ in size, design, colour and price, buying off-market is one of the many ways buyers and sellers can save time and be more wise about property purchasing.
But why is this route not for everyone? And how do you know you made the right choice?
Off-Market Buying in a Nutshell
Simply put, the process of acquiring a home that does not appear on public listings is called buying off the market.
When you pursue this route, you do not go to real estate portals, show up at open houses or sit at an auction and try to be the highest bidder. As a potential buyer, you directly approach a buyer’s representative who will then match you with the right property in private. The process is simple and forthright.
In many cases, a buyer still needs to be informed before they go off the market. It is still about “who you know.” This type of transaction tends to favour buyers who want to grab opportunities and work closely with an agent. They might have to pay a premium to reserve a property.
The risks are a given. As long as you are willing to play the game, buyers and sellers may find that the rewards are worth it. Buyers get to experience a non-competitive, smooth-sailing purchasing process and choose from a wide but exclusive selection of properties with potentially cheaper rates. Sellers, on one hand, can sell quickly and retain their privacy. The price may be lower than what one would get at an auction, but many sellers would rather have peace of mind.
When Should You Not Purchase Off-Market?
Exclusive property deals behind closed doors that anyone hardly knows about have a certain kind of lure. But the fact remains: off market property purchasing is not for everyone.
Premiums can be a deal-breaker for potential buyers. It is usually one of the reasons why celebrities and people from high income brackets prefer off-market deals.
Off the market listings are few and far between and it presents some risks for first-time homebuyers who have little knowledge of the property market. It is not possible to objectively assess the value of a property when you first see it. Unless you have enough capital or a pre-approved mortgage plan, making a compelling offer is next to impossible. Buyers need to mull over these issues first before deciding to buy real estate off the market.
When Will it Make Sense?
Buying off-market property in Canberra only makes sense if you are clear about what you want in a property and how much money you are willing to spend. Some negotiation skills may also come in handy and, of course, a good buyer’s agent with a proven track record. Coupled with effort, timing, proper allocation of resources and a good understanding of your situation, the off market property will certainly make sense for you.