Ins & Outs of Off-Market Properties & How This Affects You

Ins & Outs of Off-Market Properties & How This Affects You

In real estate, there is a concept known as "discreet sales" or "off-market sales," which refers to when sellers are not in a hurry to sell and want to maximize their prices or keep their sales private.

Let's take a closer look at the nuances of buying and selling through off-market channels.

Off-Market for Sellers

Off-market sales offer the benefit of providing sellers with a discreet way to sell their property without it being widely marketed and known to the public, often with a focus on higher-end listings due to the elevated prices in Jerusalem.

As a result, buyers can feel like they are getting a privileged opportunity to view properties before they hit the market, which may drive up prices. 

Off-market sales enable sellers to gauge interest in their property discreetly, while also requiring them to place their trust in their broker's skills for a successful sale.

This approach allows for a more peaceful selling experience without the hassle of constant showings and visitors to the seller's home.

Selling off-market often allows sellers to set prices on a "take it or leave it" basis, resulting in extremely high prices, which may not be possible if the property were listed publicly.

This approach can work well because being off-market poses little harm. On the other hand, pricing a property too high when it's on the market can result in a lack of interest or even forced price reductions.

If a seller is more eager to sell than they let on to the broker, this can be problematic for an off-market sale. In such cases, it's generally not advisable to market the property off-market since viewings will be limited to serious buyers, and few and far between.

As an example, in a recent newsletter, I featured a new off-market property in Rehavia, for which I was able to post some information while keeping certain details undisclosed, and potential buyers who expressed interest received relevant information.

Off-Market for Buyers

Off-market properties are usually in high demand and tend to be of good quality, as they can be sold without the stress of public marketing.

Additionally, purchasing an off-market property allows for a less rushed decision-making process, giving the buyer more time for due diligence.

However, sellers may have specific terms or requirements, and as they are not in a rush to sell, buyers will usually agree to them. The price is the price, and even if it seems high, that is the reality of the situation.

How This Affects the Broker-Client Relationship

Selling off-market presents a challenge that I enjoy as it requires tapping into my network and a different skill set to make the sale happen.

However, selling off-market requires patience and a strong connection with your broker.

For buyers, having clear communication with your broker about what you are looking for allows them to notify you when off-market properties that meet your criteria become available, as otherwise, you may miss out on exclusive opportunities that are not published in public listings or newsletters.

(This article is not data-based but rather based on CapitIL’s CEO & Co-Founder Ben Levene’s personal market experience and opinions. No decisions should be made without thorough due diligence and professional financial advice.)

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