An off market sale is where a property isn’t marketed or advertised to the general public. Instead, a real estate agent contacts a database of buyers known to be looking for a similar property, and invites them to make an offer.
It’s a bit like a silent auction, only without the auction part — a silent private treaty sale, of you will. Since that doesn’t quite have the same ring to it, they’re known in the industry as off market sales.
Off market properties still ON the market
In an off market sale, the homeowner can still appoint a real estate agent, prepares and signs a contract of sale and vendor disclosure agreement, and carries out any necessary pre-sale refurbishments.
The only difference is that the property isn’t publicly marketed, so the homeowner doesn’t have to spend money on photography or marketing and advertising materials — signboards, flyers, listings on real estate portals.
Low-commitment, low-cost sale
An off market sale is a low commitment option for vendors who may be testing the market to see what demand their is for their property. Property marketing fees usually come in at around 1 percent of the value of the property. In addition to being low-commitment, it’s also low-cost.
Off market sales work best for high demand property but not all agents suggest off market sales, because it involves more work — they need to contact their database of buyers, negotiate a sale and still get a price comparable to a publicly advertised property. On the upside, a good agent can negotiate a sale quickly.
What about Fixed Fee or Non-Commission Property Marketing Services
Some real estate agents offer a fixed fee no commission sales and support service and help you manage the sale of your property yourself.
Some of the sellers who use this service may not have or want to spend a lot of money, some want it sold quickly and others want to meet the right buyer, even if it takes longer.