Off market sales are nothing new, but it’s a term that’s being thrown around more these days. Let’s discuss what that means.
Think back to the days when a person would see a house they love, pull up, knock on the door, and say, “Would you ever consider selling?” That’s a version of an off market sale.
Another version, and the more common one, is how the house pictured here sold last year. The seller approached me, knowing that my company has sold a lot of houses in our community. He told me he wasn’t interested in putting it on the open market, but said if I had any buyers who might be interested, he was open to letting them see it.
I did. They bought it.
I never listed this property, but I sold it. Off market sales like this one seem to be happening more in the Hudson Valley, where the competition for limited offerings is fierce and prices have skyrocketed.
Clearly, it happens in the Catskills, too. So let’s discuss the good and the bad of this version of putting a house on the market.
The plus, particularly in a hot seller’s market, is it may get you a fast sale without letting the whole town know your place is available. You might even get away without having to do a thorough staging job, freshening paint and decor.
Don’t expect it to cost you less in commission fees. If a Realtor is using their contacts to find you a qualified buyer, mediating your negotiation, and guiding both sides through the inspection and closing process, they’re doing the work and will expect to be paid for it.
What’s the downside of keeping your house sale on the QT?
An off market listing doesn’t reach the widest pool of buyers. It isn’t even a For Sale
By Owner (FSBO), which can be listed on Zillow. It’s not going to reach any buyer beyond the ones the Realtors who are aware of it can reach.
Listing your property with a Realtor puts it on the local MLS, which means every local agent who belongs (and most of them do) can see it. And they’ll send it to all their buyers who might be interested. That is a MUCH wider pool of potential buyers. That also means your property will be on your listing agent’s company website. And if that company does its job well, it has its own faithful following of interested buyers.
A listed property also automatically uploads to all those real estate sites that rely on MLS for their content. Zillow, Trulia, Realtor.com, and all the rest, have no content of their own. They only post houses put there by FSBOs and the local MLS. That puts your property in front of every potential buyer in the country.
So what is gained by an off market listing? It’s a chance to explore what the market’s like, without committing to a listing agreement. It could lead to a fast sale.
But if you’re serious about selling, the most effective route is listing it with a real estate broker. They’ve got the expertise, the marketing skills, and the buyer contacts. They’ll be able to advise you on strategies to make your property stand out, price it well, and get the best possible price no matter what the economy is doing.