Off-Market Meaning

What Does “Off-Market” Mean?

Most homeowners choose to sell their homes on the market. This process usually involves local real estate agents and a multiple-listing service, such as realtor.com or Zillow. Multiple-listing services advertise listed properties to potential buyers, and they are often the first place buyers look for their next home. 

Off-market properties are not listed publicly on MLS sites. Instead, the seller has more control over the process and can conduct the sale as they wish. Rather than relying on real estate auction websites or a large listing service, the seller will use their connections or a real estate agent to conduct a private sale. 

Off-Market Listing vs. On-Market Listing

The primary difference between an off-market transaction and a traditional listing is visibility. If you ask your realtor to list the property publicly on an MLS site, it is easier for buyers to find it. All they have to do is search for homes in your real estate market, and they will likely see your home. Off-market properties are less accessible to the pool of buyers. 

Typically, the seller uses this type of real estate transaction to control the sale and choose a specific buyer. Therefore, it is unlikely that buyers will approach you with an offer on your home unless it is facilitated through local real estate agents. 

Why Do Properties Go Off-Market?

There are many reasons sellers may choose to sell their homes off-market. With a smaller pool of buyers and more control over the sales process, specific sellers can achieve their goals. Here are situations when selling your home off-market makes sense. 

Seller Motivations

People purchasing homes from multiple listing services often have similar goals. However, if a seller’s needs are unique, listing their home publicly could be challenging. For example, a homeowner may want the sale of their home to be private, so they don’t want the transaction advertised on an MLS. 

Speed is another motivating factor for an off-market home. A private sale can conclude much faster than a public listing, so if you need to sell your property quickly, an off-market transaction will make that possible. 

Some sellers simply want to test the market before committing to a sale. They may want to sell their house as is and need to gauge buyer interest. Another reason to sell privately is to avoid a drawn-out bidding war if you are selling in a hot market. 

One advantage of off-market listings is that there is no transaction day counter. When homes stay on the market for a long time, there is pressure on the seller to lower the asking price. With an off-market property, the seller can maintain a higher selling price. 

Buyer Motivations

You may also choose to sell your property off-market because of unique buyer motivations. Home buyers can find the purchasing process for public listings quite stressful, especially if they have specific needs. Perhaps they live in a seller’s market and want to search for a better deal. Some buyers want to find luxury homes off-market. 

Typically, there is far less competition for an off-market house, so the buyer can avoid a bidding war. Real estate investors often prefer off-market listings because they are searching for unique opportunities that wouldn’t be found on the open market. A buyer who wants to avoid a long closing process may search for off-market properties that offer faster transactions. 

How to Find Off-Market Properties

Since the purpose of an off-market sale is to avoid listing the property publicly, these homes are challenging to find. Here are a few strategies for finding them and connecting with sellers or other buyers who are looking for specific types of people purchasing houses. 

Networking and Connections

Networking is essential if you are interested in buying an off-market property. The more connections you have in the real estate industry, the easier it is to know someone who is selling a home discreetly. 

Real estate agents, home service contractors, real estate investors, and other real estate professionals will broaden your network and increase the scope of your reach. With a large network, learning about these private sales will be much easier. 

For example, you may be interested in buying a rundown property to fix up and turn into a rental. Often, these homes are not offered on the open market because sellers know they will have to keep lowering their prices to find a buyer. 

However, if you learn about a seller who wants to offload their distressed property through a real estate agent you know, they could connect you to the seller to secure your purchase. This is often called a pocket listing. 

Online Platforms and Resources of Off-Market Listing

Though home sellers may not wish to publicly advertise their properties on websites like Zillow, some online platforms offer off-market options. These sites make private transactions possible without the additional baggage of a public MLS sale. Fewer buyers use these platforms, so there will still be less competition and more specialized needs. 

Using home search sites for off-market listings will help you find more potential buyers for your home, but there will be more competition than selling the house through your network or other offline channels. 

Many listing sites will let you offer the home for a certain period before it gets listed publicly, so you can facilitate a quicker private sale using this method. 

Directly Approaching Homeowners

The value of a personal approach to a private sale cannot be overstated. By contacting potential buyers or sellers directly, you can avoid the use of middlemen like real estate agents, pocket listing services, and your network. 

If you know a home you are interested in is for sale, you can even knock on the door to speak to the owner and ask if they have any selling intentions. 

If you are attempting to sell a home off-market, you may know someone in your social circles who is interested in a luxury pocket listing. Rather than using a service to facilitate the transaction, you can discuss the matter directly with the buyer. 

This direct approach may seem challenging, but it is often the most effective for connecting buyers and sellers whose needs align on one property. This method eliminates the stress of a property search for the buyer and ensures the seller is in control of who gets their property and how the sale proceeds. 

Pros and Cons of Off-Market Deals

Off-market deals are not for everyone. Even if you have a specific type of buyer in mind or you want to purchase a luxury home with less competition, it might still be better to pursue a typical real estate sale. Let’s discuss the advantages and disadvantages of off-market real estate sales so you can assess whether they are the right path for your needs. 

Pros

Off-market homes offer numerous advantages for both buyers and sellers. There is less competition between buyers for off-market homes, which can benefit both parties depending on their circumstances. Some sellers prefer to keep the sale of their homes private, so avoiding MLS listings is their best option.

Another reason off-market sellers may choose this path is flexibility. Since they have more control over the selling process, they don’t have to rely on MLS listings, agents, or other parties to resolve the sale. They can avoid extra fees, potential up-front expenses, and delays to facilitate a sale that works for them. 

Since agents typically advertise more desirable homes on active MLS listings, selling a distressed property may only be possible through private channels. If you sell a house privately without a pocket listing service or real estate agent, you can avoid paying commission or service fees and walk away with more money.

Cons

Even with all the advantages of selling a property off-market, this strategy may only be suitable for some buyers and sellers. There are also some significant disadvantages. 

First, a private sale offers far less exposure for the seller’s property, which means they could struggle to find a buyer willing to make an offer. There is also the potential for pricing challenges if you don’t use a listing agent to help determine the fair market value of your home. 

One of the biggest challenges for off-market properties is finding buyers, so you will have to rely heavily on your network to find the right person. This challenge affects both sellers and buyers. 

If the seller’s real estate network is small, they may struggle to make money off their property. Likewise, a buyer who wants to invest in a distressed property could struggle to find the right home if they are new to the local housing market or have no connections in the industry. 

Another disadvantage for off-market sellers is having to pay their direct marketing expenses to advertise their homes to a smaller pool of buyers. 

Selling a Home Off-Market? Give Us a Call!

An off-market sale may be the perfect solution for your property if you can find the right buyer. At A-List Properties, we buy homes in any condition, whether they are in complete disrepair or full of possessions you don’t want to keep. Our team buys houses quickly for cash, ensuring your private sale closes in 14 days or less once you accept our offer. Our cash house buyer team is ready to make a fair cash offer for a private sale of your home. You do not need to clean, repair, or even inspect the house before selling it to us. Whatever your circumstances, we will work together to determine the best solution for selling the home. Call us today at 972-526-7042 or complete the contact form to request a quote.