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When a vendor is interested in selling but hesitant about diving into a traditional campaign and interested in off-market sales, it’s important to give them all the facts.
National network Hockingstuart recently laid out the main arguments for and against off-market sales, offering valuable insights for agents to share with sellers looking to refine their strategies.
The benefits of off-market sales:
Targeted buyer outreach
Hockingstuart noted that off-market sales enable sellers to focus on high-intent, pre-qualified buyers through exclusive networks, buyer agents, and specialised platforms.
“For sellers, engaging with buyer’s agents allows them to access a pool of highly qualified and serious buyers without the public exposure of listing on the open market,” Hockingstuart stated.
Reiterate to sellers that this often leads to a smaller number of stronger competitive offers and is a more streamlined and personalised sales process that saves time and resources.
Reducing costs and logistics
Hockingstuart stated that during off-market sales, “offers can be submitted, reviewed, negotiated, and accepted before investing in external marketing options or auction fees”.
Highlight to sellers that without the need for extensive marketing campaigns or frequent open homes, off-market sales can minimise staging and advertising expenses for sellers.
Testing market interest
Sellers can use off-market sales to measure buyer interest and pricing expectations without the concern of creating a negative impression among potential buyers.
Ensure sellers that If the property doesn’t sell privately, it can still be listed publicly as sellers form better-defined strategies and realistic market insights.
Meeting requirements
Off-market sales can reduce competition and allow sellers to develop a personal relationship with buyers. Hockingstuart recommended that equipping sellers with strategies to understand buyers’ motivations will help them address buyers’ needs beyond just pricing.
Privacy and efficiency
The off-market approach offers privacy for sellers and speeds up transactions by bypassing traditional sales campaigns. This approach can allow sellers to foster personalised interactions with buyers, leading to stronger client relationships and tailored negotiations.
The challenges of off-market sales:
Limited competition
While off-market sales can streamline the process, the lack of public exposure might reduce competitive bidding, potentially leading to lower sale prices.
For properties that thrive on high visibility, this method may not yield the best outcomes.
Longer sale cycles
Finding the right buyer without broad market exposure can take time. Off-market sales require sellers to be patient, particularly in a buyer’s market where increased availability and lower demand may slow the process further. Advising sellers to consider open-market exposure during this time can help them reach a broader audience and drive competitive offers.
Overlooked costs
Some off-market platforms charge fees upon sale, which agents and sellers should account for in advance to avoid unexpected expenses.
Off-market sales provide agents with a flexible tool to attract motivated buyers, but success depends on strategic execution and clear communication from the agents selling the properties.
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