Tired of losing out to 30 other buyers at every open inspection?
Something most people don’t know… The majority of Australian property doesn’t sell with an online listing. No marketing. No open home. No auction.
Those are known as off-market homes. Buyers who know how to find them receive:
- Less competition
- Better prices
- First pick of the best properties
Here’s the problem:
You won’t find them by scrolling the property portals on a Sunday morning.
Use this cheatsheet to learn step-by-step how Savvy Buyers find homes that never become listings. Ready?
What Are Off-Market Homes?
An off market home refers to a home that is sold privately and never listed on the major property websites.
Rather it is quietly whispered to a short list of buyers the selling agent already knows.
The owner sometimes sells directly to a buyer with no agent involved.
Just how often does this occur? There is no perfect record, but industry analysts have determined that around 20% of sales are done off-market. That means one in five properties buyers will never have the chance to see.
Why sell like this? Privacy. Divorces, deceased estates, high profile owners or landlords who don’t want to upset existing tenants.
Some just want to skip the cost and stress of a full campaign.
Why Off-Market Deals Belong In Your Investment Property Acquisition Strategy
Off-market properties should always be considered when developing your smart investment property acquisition strategy.
Less buyers knowing about a property directly translates to less competition allowing you to conduct your due diligence and negotiate on price and settlement terms. That’s why many investors turn to Buyer’s Advocate’s full search and acquisition service to gain access to quality investment properties not available to the public together with thorough research and due diligence.
And the savings can be real.
PropTrack research found that homes sold off-market were sold at prices 4.3% lower than homes listed online. Sydney’s off-market discount was greater than $60,000.
That’s a serious head start on your equity.
Sure, not all off-market properties will be priced low. However, getting to purchase without competition is pretty great.
5x Ways Buyers Find Off-Market Properties
Now to the good stuff.
Below are the most effective ways buyers find homes before anyone else knows they’re selling.
Read through the list, choose a couple that appeal to you and hammer away until they pay off.
Build Relationships With Local Agents
This is the most powerful method on the list…
Selling agents maintain a “little black book” of buyers. When a whisper listing comes through, they call those buyers first.
Your job? Get into that book.
Attend open homes in your chosen suburb Attend open homes and introduce yourself to the real estate agent. Be direct. Tell them what you want, how much you want to spend and that you are ready to proceed with finance.
Then touch base every few weeks. Agents interact with hundreds of buyers. Those who follow up (and seem legit) get the first phone call.
Sign Up To Off-Market Platforms
There are several sites that list off-portal properties. Some are free. Others have a nominal monthly fee.
They won’t display every secret savings opportunity. However, they are a convenient way to view what’s available from your couch.
Setting up alerts shows you new properties in your chosen suburbs as they become available.
Knock On Doors (Yes, Really!)
This sounds old school… But it works.
If you adore a street write your favorites owners a little love letter. Tell them that you would be interested in buying there if they ever want to sell.
Most people will ignore it. That’s fine. You only need one owner to reply.
It requires patience but this strategy can find you steals that your agent doesn’t even know about yet.
Watch For Expired And Withdrawn Listings
Here’s a clever one most buyers miss…
Listings that failed to sell are often removed from the market. The seller may still desire to sell, just without another public listing campaign.
Create a list of properties that have been withdrawn in your region. Contact the agent a few weeks later and enquire if the vendor is willing to receive offers.
Pretty cool, right?
Use A Buyer’s Agent
Buyer’s agents represent you, not the seller. They talk to selling agents all day long. Often they learn about homes BEFORE they are even ready to list.
Especially useful if you’re purchasing interstate or short on time. Buyer’s agents will often inspect the property for you, crunch the numbers and negotiate on your behalf.
The Hidden Risks Nobody Talks About
Off-market buying is not all rainbows. Here are some pitfalls to avoid.
No competition: Without other buyers to compete against you, you have no idea what your home is worth. Remember to research recent sales on your street prior to bidding.
Feeling rushed: Some agents will try to rush you into signing. Never forgo your building and pest inspection or solicitor’s contract review.
Just because it’s private doesn’t mean it’s a deal: Some homes are off market because they wouldn’t attract buyers if they were public. Inquire as to why the seller is choosing private… then heed the response.
It’s an easy fix. Approach every off-market property as if it were listed. Do your due diligence, and don’t let fear of loss drive your decision.
Bringing It All Together
Off-market properties can provide investors with a number of advantages.
There are fewer buyers to compete with, you typically have more time to make a decision and you may have more negotiating leverage when it comes to price.
For those reasons they should be included in every investor’s strategy for acquiring investment properties.
To quickly recap:
- Get to know local agents
- Join off-market platforms
- Write to owners in your dream street
- Chase expired listings
- Consider a buyer’s agent
- Rinse and repeat
Somewhere out there exists a clandestine market. The seekers who do their diligence discover it.
Frequently Asked Questions
Off-market means that a property is being sold privately. It will not be listed on any public property sites, and is typically only shared amongst a select few buyers.
Absolutely. Less competition can allow buyers more negotiating power. However, you’ll still want to look at recent comparables to ensure you’re offering a fair price.
Absolutely. Off-market purchases should be a large part of your investment property acquisition strategy. They allow you to avoid bidding wars and buy solid assets before other buyers know they are available.
No, however it does assist. You can locate off market properties yourself by networking with agents and utilising the strategies above. It simply requires more time and effort.
