Selling off-market. Advisable or not?
March 1, 2022 3:56 pm
During the pandemic, there has been a marked increase of property sales occurring ‘off-market’. This is a sale that is not publicly advertised to the open market, in some cases without using an estate agent.
Sales like this can happen in both rising and falling markets, but it is particularly common when markets are rising.
In a strong or rising market, selling off-market can be effortless and it is easy to see why this may be appealing to some owners… no board, no viewings and no expensive estate agents fees!
It is clear that buyers are resorting to desperate tactics to try and secure a property, sending flyers to particular properties or roads. Often this is in a bid to beat the queues and avoid having to compete with other buyers in the same situation. However, there are unscrupulous buyers out there who might try to exploit a seller who might not know the true value of their property.
The sheer frustration of constantly losing bidding wars and poor service from agents leads them down this path. A private buyer will usually promise a win/win situation for both the buyer and seller because the agent misses out on a commission! ‘We can both save’ they will claim. Be careful of this claim. It has some traps.
Sellers who have a low opinion of estate agents can fall into the trap where the sole aim is to avoid paying a commission. Selling off-market without an agent just to avoid paying a commission should not be the sole reason for selling off-market.
In this incredibly strong market, without a proper marketing strategy and without the correct exposure, how does a seller know they are getting the right price? We have seen buyers, desperate for property, pay as much as 25% above listing price (although it is more common to see a range of around 5-10%).
In a rising market, selling off-market for a good price is easy. However, the difference between selling for a good price and a great price could literally be costing the seller tens of thousands of pounds, just to save a few thousand pounds on agents fees.
Of course, a competent agent can deal with ‘discreet sales’ which are not fully marketed to the general public, but the client still has the benefit of the agents knowledge and experience to ensure that full market value is achieved.
Our advice, if you are approached to sell off-market, speak to us and we will help ensure you get the best price.