Off market property deals

Does off market actually mean your getting a great sneaky inside deal or is it just another sales pitch to unsuspecting newbies like myself?
Recently I was offered a property through a BA, deal was put to me using words like this,
GREAT OFF MARKET PROPERTY
Excellent
Outstanding
OFF MARKET was mentioned in capitals more than one time.
The entire deal felt more like a sales pitch to get a super quick sale.
After doing some research I found the property listed on Realestate.com.au for 7k more than what it had been offered to me at, if I took this particular deal and paid the BA fee I'd actually pay more than the listed price.
Feeling slightly disappointed

 

It's a good thing you carried out your due diligence.

I guess it depends on the BA - no doubt some would land some excelllent off market deals. I've got a couple of deals in the pipeline (my clients are purchasing) that were purchased off market via BA's - both seem like great deals.

Cheers

Jamie

 

You can only know if you are getting a Great Deal when you compare with similar properties on the market.
The one you mentioned definitely seems like a sales pitch, especially when it's already listed.
Once you go to few open houses and tell agents what you are after, they'll start to show you properties matching your criteria before they put them on market. Thats more of an off market sale.

 

Off market means you should not be competing, if the BA sent it too 200 people, you may have competition and in a way is on a small market.

You have to know what your buying, it does not have to be extremely discounted, for instance there may be a lot of competition in this market, or be a special type of property, so off market will relieve some pressure and more likely to secure.

So it depends on what you require really & how it stacks up for yourself.

 

@dabbler good point of view, the market there is definitely getting attention, saying that there are deals to be found even with a quick online search.
What I really have come to like in this particular scenario is it has pushed me into buying some plane tickets and going to do the hard yards myself, been talking to real estate agents most of today so my confidence is higher for sure.
I already knew where I wanted to buy now it's time to stop being lazy and get amongst it.
Roller coaster for sure

 

It's a sales pitch. "Off market" "VIP launch" "sneak peak" - all the same.

A property can be marketed for 6 months before it is on the market.

If a property transacts it is part of the market.

 

Claiming OFF MARKET for a property that is listed on re.com is absolute BS. If my BA did this I would grill them on it and definitely loose a bit of faith in them. That being said there are 'real' off market deals and yes some can be a real advantage over on market deals. As yourself this question though: if a REA thinks he can get $500k plus for a property 'on-market', why would he lose commission % and list it for $450k to your BA contact? Yes both parties stand to save time/marketing costs but no REA is selling properties at a 'special' discounted price when they think there are buyers lining up to pay a much higher open market price.

 

Yes, of course.

But I do not think he said they were listed on an internet portal ?

I would be more worried about a BA that mass e-mails property instead of finding one that suits me, I would not like to pay 10k to be on a mass e-mail list !

 

This is ludicrious! This was a fee-for-service BA who you engaged to act exclusively on your behalf? They're clearly not doing their job!

It does highlight the important point that as with any professional service, not all BAs are created equal! As much DD should be going into your BA as any other service provider...don't assume they know it all! I've seen BAs who are just sales agents who have changed teams and don't even own an IP themselves. In my opinion, you can't be a BA for property investors if you're not a property investor yourself. And I don't mean a landlord - I mean a property investor - there is a difference!

 

Who was the agent may I ask ?

I recently bought my last house off market
I made 75 letters saying I wanted to buy your property etc put them in to selected looking properties and we secured a house we no agents involved I saved on agent fees which the owner was fine with and was more easy to neogeatiate with as it was o lot me and him
There are plenty ways to buy off market hope you getting you real soon congrats on taking action and checking it out your self I take my hat off to u

 

What a deal, pay someone so you can pay more than if you just used website and paid asking....

 

Off market deals doesn't always mean its going to be a bargain

Often its just an agent or seller trying to sell a property without advertising/open homes/lots of work.

Selling agents will often present 'off market deals' to their own list of buyers, investors and buyers agents in one go and because they hear the term 'off market', it becomes a bit of a feeding frenzy and ends up selling for market value anyway

What matters most is the 'story' behind each property and why it could be a good deal. For example, seller lists property at market value and receives little interest. Few months go by and the seller loses their job meaning they NEED to sell asap, and a low offer with minimal conditions gets the property.

A BA's ability to flesh out these scenarios is more valuable than being a part of another 'off market deal' list

 

A couple of other things to remember about off-market deals is you potentially have less other buyers to compete with (or none at all, depending on the strength of the relationship between the selling agent and the BA). It can also be an opportunity to acquire something without being forced down the auction path, and potentially get conditions into a contract where you otherwise may have been competing with other buyers that were prepared to offer "cash unconditional".

A BA cannot stop a selling agent from listing a property on a real estate website, however some may offer a BA a courtesy of a day or so to offer on & secure the property before listing it for the world to see. After that, if a BA is slow or doesn't wish to offer on the property, the selling agent may indeed list the property publicly, and rightfully so - their job is to get the property sold.

 

I guess it's all in the timing of when he was was it was an off market deal vs. when it was listed really. I think it's fair to say that once it's listed on realestate.com.au it's not off-market!

Simon and Jac are both right - it's the art of the deal that matters most, not necessarily whether it's off market or not.