When looking for a property, the average homebuyer will log onto a real estate site and look at listed houses. Though this can yield effective results, it omits the wealth of off-market properties that could be considered. This may not be troublesome for an individual buyer — in fact, on-the-market homes may be easier to pursue. For an investor, though, this represents a significant loss of prospects and a potential loss of profit. Scoping out off-market investments is thus an important task. If you’re wondering how to find off-market properties, consider the following strategies.
What is an Off-Market Listing?
An off-market property is precisely what the name would suggest — a property that may be available for sale but remains unlisted on the MLS. This happens for various reasons, and some investors may view it as an obstacle. Savvy investors, however, will view it as an opportunity. If a property is unlisted, that means the general public likely doesn’t know about it — and that means that an investor can swoop in and snag a great deal.
Off-Market Vs. On-Market
When comparing on-market and off-market listings, there are a few key differences to consider, the first of which is price. Off-market listings are often unlisted for a specific reason, and sometimes that reason is related to the condition or marketability of the home. In these instances, any potential deficit may result in a lower price. This is compared to properties listed on the market, typically renovated and prepared for sale — and priced to match this effort. There may also be a difference in the buying process between on and off-market homes. In some cases, an off-market home may be in probate or may require a lengthy purchase process for another reason.
Why Keep it Off the MLS
Being off-market can signify that a property needs particular attention, but it isn’t necessarily indicative of any deficiency. There are many reasons why a property may be off-market. It could be for sale by the owner, or maybe the owner hasn’t fully committed to selling. Similarly, a real estate agent may be keeping a property as a so-called “pocket listing,” meaning they hand-pick potential buyers rather than listing it publicly. If a property belongs to a high-profile buyer or is in an exclusive area, it may be kept off the market to maintain privacy.
Pros of Buying & Selling Off-Market
Buying and selling off-market properties can offer an array of benefits. In addition to the potential bargains you may find as a buyer, there’s also the possibility of dealing directly with sellers, making negotiations more effective. As a seller, keeping your listing off-market is the best way to preserve your privacy. If you’re selling a property that tenants currently occupy, off-market listings also ensure that they won’t be disturbed — which is almost a certainty if you were to list on the MLS.
Things To Consider for Buyers & Real Estate Investors
When looking for off-market listings, you should carefully consider why a property is unlisted and do due diligence to research it before pursuing a deal. The best resource for your research is a data verification tool or a lead generation platform that can provide in-depth details about residential properties. This data is an invaluable tool when looking to make an investment and find the best deal. Use data to pursue off-market properties for sale with confidence.