1 June 2020

*WoledgeHatt archive image

Off Market Properties: What You Need to Know

Off market. Properties have always been sold in this manner by agents in Melbourne and recently this method of sale has become more prevalent. 

But we believe that navigating the world of off markets is becoming even more complicated for buyers.

Historically, ‘off market’ properties have been sold very privately, often with only one or two parties (including the agent) aware that the property is even for sale.

COVID-19 has brought about a new way to sell ‘off markets’. It has become far more public and, for some, with less control over information being presented to buyers.

We mentioned recently a new trend where we are seeing a number of vendors interested in selling and testing the marketplace before investing in an expensive public campaign. Many of the early asking prices seem ambitious if we compare them with similar homes sold in the past year (remembering that during the past 12-month period we also reached another peak high among some weaker months).  

A number of vendors are placing their biggest asset up for sale quietly with an agent, thinking only the qualified buyers will be made aware of the property, whereas in reality, the property is being shopped around to a number of local agents and their databases. 

We are seeing more vendor advocates and sometimes agents inviting other local agents to introduce buyers to the property in return for a share in the commission. With limited stock around, this can be appealing for agents wanting to increase their commissions. 

Unlike selling, it is much harder for a buyer to choose who they want to buy from. The buyer chooses based on the property for sale, rather than the agent selling the home. Most buyers are on all their local area agent databases. It can be confusing for buyers receiving multiple texts and emails about off market properties from a variety of agents. 

Some of the questions we at WoledgeHatt arm our clients with include: 

·  Which agent should you contact?

·  Which quote is correct?

·  How will you know if there are other buyers interested?

·  How should you make an offer?

·  What price will the vendor really sell at?

·  Is there a process for the sale?

·  Is the property really for sale yet?

·  How reliable is this agent in getting the deal done? 

 

Most buyers love the thought of buying an off market property; however, it is important not to get caught up focusing on off market homes that may not really be for sale (yet) and miss out on something that could have been perfect, marketed the traditional way, or a property that has been on the market for some time yet the ‘asking’ price has been too high. 

We believe that the more experienced agents with a direct line of communication to the vendor get the best result.

We are seeing a number of the better advertised homes sold within the first week of the campaign. Where in the past, a lack of contracts may have delayed quick sales, some agents and vendors are more prepared and aware that their best buyer may be one of the first few through the door and they don’t want to miss the opportunity to sell because they aren’t prepared.

As a buyer, being prepared is the best position to be in.

At WoledgeHatt we know the right questions to ask the agents and we know how to answer our questions above.

Since 2007, we have been buying homes via all these methods of sale and in all different types of markets. We specialise in residential homes, so contact us today and let us help you increase your chance for success when buying your next home.

Good properties still selling well….3 Sorrett Avenue Malvern – Carla Fetter/Andrew McCann, Jellis Craig- sold for an undisclosed price above quoted range on 27 May for around $4m

 

 

One of the better properties on the market; an architect’s view

 

19 Margarita Street Hampton – Stefan Whiting/Guy St Leggier, Buxton

 

‘Off-market’ Properties:

 

  • Brick Edwardian, ready for a freshen up, Elsternwick – circa early $3m
  • Landmark period home with modern rear, Elsternwick – circa high $4m
  • Edwardian family home on good land, Glen Iris – circa $2.7m
  • Contemporary home with downstairs master, Kew – circa $2.3m
  • Victorian single fronter, Hawthorn – circa $1.75m
  • Edwardian brick semi, close to amenities, Malvern – circa $2m
  • Fully renovated double fronted Victorian, Malvern – circa $3.2m
  • Single level home on approx. 470sqm, Malvern – circa high $4m
  • Art deco semi attached, renovated, Elwood – circa $1.6m
  • Extended timber period home, 2 bed, 2 bath, 2 OSP, South Yarra – circa high $1m
  • Edwardian timber family home, close to beach, Hampton – circa $2.6m
  • Period home to renovate or rebuild, 836sqm, near beach, Hampton – circa $2.8m