Selling off-market: What you need to know before you list

There are various methods by which property can be sold, with sale types ranging from auctions and private treaties to expressions of interest. 

One increasingly popular sale type is the off-market method - privately marketing a property without publicly listing it on major real estate platforms or through typical advertising channels. Instead, sellers and agents tap into exclusive networks, buyer’s agents, and off-market platforms to reach motivated buyers discreetly, who are invited to inspect and make an offer on a property before it is formally listed. 

The seller gains control over who can view and inspect the property while reducing the costs of selling and marketing, as these buyers are typically high-intent, pre-qualified, or specifically searching within specific criteria that match the property. 

In this blog, our agents take us through the pros and cons of selling off-market, so you can make an informed decision as to whether it’s the right approach for you. 

The pros of selling off-market

Reach the right buyer

Off-market sales allow sellers to cut through the noise and only invite qualified and highly motivated buyers to inspect a property. High-profile individuals or those who value discretion may prefer this method to avoid public exposure. 

Buyer’s agents are a great resource when selling off-market, with highly motivated buyers employing them to secure a property. Buyer’s agents will proactively reach out to real estate agents with their buyers’ search criteria, with the agents notifying them of suitable upcoming off-market sales. 

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. This can result in fewer but stronger offers, and a more efficient, tailored sale experience.  

Another way to reach qualified buyers is through online off-market real estate platforms which require buyers to provide specific criteria. If a property matches their criteria, the buyer is notified immediately. 

No open homes 

An off-market sale means fewer interested buyers and less foot traffic through a property, reducing the need to prepare and stage your home for regular inspections. 

Potential savings

Selling off-market can save the seller money on the listing. Offers can be submitted, reviewed, negotiated, and accepted before investing in external marketing options or auction fees. 

Test the market price

Selling off-market gives sellers a picture of the property’s value, testing the market’s response - positive and negative - and assessing price expectations. If a property doesn’t sell off-market, vendors can take it to the open market with a clear price strategy and realistic expectations.  

During a hot seller's market, selling off-market may be less desirable, as public listings might attract more competition. 

Less pressure

An off-market listing doesn’t have an official start date, so sellers can take their time and test the market without fear of a negative impression from potential buyers. The longer a property spends on the open market, the more lowball offers it will attract. 

Have your requirements met 

Reduced competition can allow sellers to develop a personal relationship with buyers, in which the buyer can better understand the seller’s reasons for selling and make offers that meet their needs outside of just price. 

Maintain privacy

Choosing an off-market listing allows sellers to keep their property away from an open real estate market. No public listing, auction or open homes afford high-profile sellers' privacy. 

Faster transaction

By avoiding the length of a typical sales campaign, which can sometimes take several months, sellers can achieve more immediate results. 

The cons of selling off-market

Risk of not reaching the best sale price

Typically, higher buyer interest in a property means greater competition and a potentially higher sale price. Fewer buyers mean fewer offers and less chance of a bidding war, which could see the property sold at a lower value than if it were listed on the open market. 

Slower sales

There are no counting ‘days on the market’ when selling off-market; however, sellers may have to be patient. Off-market sales are all about attracting the right buyer, and in the case where it takes a while to find the right person, a property is going to take longer to sell. 

In a buyer’s market, where property availability is high and buyers have the upper hand, selling off-market can reduce visibility and potentially limit competitive bidding. During such times, open-market exposure could help sellers reach a broader audience and drive competitive offers. 

Overlooked fees

Typically, off-market platforms charge a listing fee when a property is sold, which can be easy to overlook during the sale transaction. Sellers should check the fees payable before the property sells, so there are no surprises at the end. 

Learn more

Wondering if an off-market sale is right for your circumstances? Our agents know the ins and outs of selling property off-market, and as trusted real estate advisors have extensive experience in advising on the right sale type for each vendor. 

If you are looking for a streamlined selling process, contact us to see if off-market is the best fit for your property.