Is an off-market deal right for you?

GUEST OBSERVATION

Weekend after weekend, Melbourne experiences spectacular sales rates signalling that property interest among buyers at an all time high. So it comes as no surprise that buyers have turned their attention to the potential of off-market deals. 

But how can off-market deals favour the vendor and what should they look out for in order to capitalise on this shift and this new type of buyer? 

One of the most obvious benefits of off-market sales is that they allow vendors to sell their property without having to invest in marketing or pay advertising fees. With off-market sales, vendors can easily establish an asking price that they are comfortable with without worrying about their property being passed in on auction day. However it is important to note that auctions are competition driven and therefore fetch higher sales prices in many instances compared to private sales. However if a vendor has a reason for selling privately then an off-market strategy can act as an excellent choice, given they seek the right professional advice. For vendors seeking privacy, a well established and community focussed agent should have a database of buyers that may be the perfect match for their property via an off-market sale. 

On-market sales better reflect the demand occurring the market right now. With an off-market sale it is harder to gauge and may deter some buyers as they may feel the vendor’s asking price far exceeds what the market dictates. At Hodges Caulfield we look at both the history of sales in the area and prices of competing properties to set an informed value and price range to avoid this situation and draw in buyers who dislike the auction scenario or have a specific criteria. By selecting an agent with good local market knowledge and a rich database of potential buyers, vendors will ensure they are setting themselves up to receive quality leads.

Just like an auction scenario, an agency with good business practice will inform a vendor of all the offers on their property as soon as they are made. The agent will then have a conversation with the vendor and give them sound guidance on whether it’s an offer they should accept or decline. If the agent is waiting on another offer they will let both parties know so there’s transparency during the whole transaction. Where there’s transparency, there’s a better result not only for the purchaser but also for the vendor. 

Golan Flamm is sales manager of Hodges Real Estate Caulfield. He can be contacted here.