There are a number of ways to sell a property, one of which is referred to as the “off-market” deal.
An off-market deal is a term used to define a property that listed for sale with a broker but not put on the Multiple Listing Service (MLS) or with a sign in the yard. Essentially the home is sold without any public advertising. It is sold through relationships and networking.
Why Sell Off-Market?
Reasons for a homeowner to sell their property off-market are varied and can include the need for a quick sale due to family or financial situations, or even avoiding the hassle of preparing a home for sale. Here in Los Angeles, a common motivation we see for an off-market sale is the desire for privacy due to high profile clients.
So how does the seller benefit from an off-market deal?
Privacy – the general public doesn’t know the property ever changed hands
Buyers may be willing to pay a premium for not having to compete against other buyers for a property.
No hassles – sellers don’t have to worry about having a home constantly clean and “show ready” every day, or vacate their home for a whole day for an open house.
The Pricing Strategy
Are sellers leaving money on the table by selling off-market? The short answer is NO, as long as the seller and the broker have done their homework with respect to pricing the home accordingly. The salient point being that the price for the off-market home is not the same as the price of the home put on the MLS.
For example, a seller and their agent determine that the best price to list their 3-bedroom home in Westwood is $1,349,000. In this market however, it’s possible that demand may drive the price up as high as $1,400,000 with multiple offers. So the off-market price is $1,400,000. The buyer pays a premium to buy the home without the stress of competing with other buyers, at a price it was likely going to hit anyway.
Know the Risks
There’s always risk involved with any strategy, and no matter how much research is done by you and your broker, there is always going to be the risk of having left money on the table. Nobody can predict the ultimate sales price of a property because the determining factors are fluid:
Market Conditions at the time of sale
Inventory levels at the time of sale
Interest Rates at the time of sale
Buyer Pool at the time of sale
Ultimately, it boils down to the motivation of the seller when it comes time to list their property for sale, on – or off– the market.
I recently had the privilege of helping my client to buy an off-market property here in Lindbrook Village. And, it just so happens that I have at least 2 more buyers that would like to purchase specifically in this amazing little cluster of buildings. If you’re even considering selling, or if you’d simply like to know the current value of your condo, give me a call or shoot me an email.
I’d love the opportunity to sit down with you to discuss your goals and options. So let’s talk.