The real estate market is hot, with houses in exclusive locations like Lutney’s zone, Shanti Niketan etc. often snapped off the market in mere days. Although it may seem counterintuitive, this deficit of housing inventory is motivating more “pocket listings,” which is slang for off-market listings – homes that are not listed on the Multiple Listing Service, and therefore not visible to the majority of browsers.
Off-market listings have an air of exclusivity for both the seller & buyer — sellers are drawn to the private, streamlined manner that will often net them at least asking price from genuine buyers, while buyers enjoy elite access to off-market inventory. Exclusivity aside, we’re taking a denser look at how an off-market transaction varies from listing your property the typical way (on the MLS). Here’s some critical information to know.
Wealthy people, including many celebrities, often sell off-market. They do so for prestige & to stand apart from the generic real estate market. Like a private club you must be invited to participate; buying a house off-market makes buyers sense as if they’re part of something only an elite few are personal too. Everyone wants something that none else knows about.
But even if you’re not selling a house that’s worth millions, you might still prefer to sell off-market. Why? For openers, it can be more comfortable. A friend/family member might be in the market to buy a home. You can just sell it to them without having to list it first. Or if you have an established and efficient real estate consultancy to assist you,who in turn would introduce your property to a couple of key people and make the entire process pleasant and profitable for you.
But to gain the right mileage you must be in a hot market with a desirable property. Either this or you need to be in a place where you do not need to sell anytime quickly. This is for the seller who is in no hurry. Without exposure and listing a property, the seller has to own something that many buyers want to purchase.
Networking is key if an off-market listing is to succeed. A consultancy/agency, which has a sizable sphere of influence and reliable buyers they know would be interested in the property. The better report with a consultancy the buyers has, more likely they are to find out about these types of exclusive listings.It is also recommended that buyers let hired consultancy/agency know they’re looking for exclusive deals.
If you like your privacy and don’t want people to know your home’s sales price or to view your property’s pictures, you’ll like selling off-market. The main advantage is that the seller has anonymity. There is basically no unwanted visitor on the property and little to no exposure. So if you can’t bear the thought of your house on the listing of local brokers or all over google with a huge for-sale sign gracing your home’s picture on it, selling off-market might suit you. The arrangement can benefit your consultancy as well. The listing agency may already have a few buyers in mind and so will have to spend less time showing the property to others.
Selling off-market can also be the best plan for properties on lease/rent. In this manner their tenants won’t be disturbed by constant showings.
If you want to sell your house quickly, selling off-market is not the way to go. As there is no exposure, and it could take a very long time to sell. Since there are fewer people who know about a house. The selling price could be lower on average over a house that is fully marketed.
However, on other side you might get even a better price, because of the exclusivity factor attached to the property. The prospective buyer, especially in a hot market, will feel like they are receiving a sneak peek, which can add a sense of value and even urgency. Thus getting buyers who buy off-market properties and pay more than the open market would bring.
See Also: Managing Multiple Investment Properties