What exactly is ‘off market’?

I always thought that off market properties were not advertised or listed publicly as that’s why they’re called off market.
I know that often the vendors want privacy for whatever reason and minimal drama.

When I spoke with an agent recently, he told me to check their agency website or domain for their off market properties.
In my head this doesn’t seem like off market.

Is he talking rubbish or am I misunderstanding what off market really means?

I’m interested in PPOR btw.

 

I'd say when the vendor hasn't signed with any agents.

Those properties you mentioned are on the market, they're just not being heavily advertised.

 

While off-market should in the strictest sense mean something that otherwise was not for sale or not on the market for sale, I think it pretty much has come to mean anything that's not being widely/publicly marketed or a property prior to listing on the market.

 

For residential RE.
Often what really happens is the vendor has signed up with an agent, or about to sign up and the REA hasn't yet done photos or advertised it.
He want's to make a quick commision without much work and so he convinces to seller to sell quickly.
Form the BA or promoter's side some will ring a bunch of REAs and ask them if they have any listings coming up or new listings which may or may not be suitable for his clients, but which he may recommend to them.

Occasionally you will get a vendor who needs to sell fast and may take the first decent offer or amount he's expecting.

CIP is often different.

 

This!

Sometimes it's just cost cutting by the agency, so they don't have to pay to have it listed with RE.com, or Domain. Of course, they still charge you the same commission.

 

The real off-market is when a property is not listed on any website (including the agency’s website) and the agent only notified you on the phone/by text because he or she hasn’t even taken any photos or prepared floor plans yet. In this heated market however it’s more common to see agents doing pre-market launch with the property only being listed on the agencies’ website coupled with an extensive email campaign.

 

Google gazumping for the state. Each state laws vary. Some states still allow gazumping (eg Vic) . The practice of selling a property to a higher bidder after a contract is made. It is legal in Victoria...know how.

The period between signing a contract and contract exchange is the risk period. So here is what can happen. Agent gets a offer for $1m and the vendor verbally says yes and the agents holds a signed contract signed only by the buyer. Then the agent puts a "under contract" sticker up. Then he hits the phone and tells others who looked at it its sold and its theirs if they can offer over $1m but must act fast as its effectively sold. Second viewing occurs that night. New offer comes for $1.1m. New buyers asks that the property also be withdrawn from sale and exchange occur next day with waiver of cooling off rights. Agent calls original buyer and gives them bad news. They get their deposit back.

Buyers who gazump actually learn a lot. They know a willing buyer will pay $1m and can evaluate if they think its worth that or more. Its strategy some buyers and also agents use a lot. Strategies to exchange fast are key in problem states

 

Has 'off market' now become the latest maketing fad evoking exclusivity from buying amongst the common folk, and therefore leading to better prices?

 

@LP7 is right. I have also seen some agencies email "off-market" properties to people who have signed up to their newsletters. These properties are not advertised on major channels like Domain.

Curious to know why you are seeking off-market properties? Usually the best way to do this (apart from staying in touch with REAs) is via a well-networked buyers' agent. Not every buyers' agent will be able to do this, however I have picked up a couple of off-market properties in this hot market through my BA who's an absolute gem.

 

There was an article in this morning’s paper about a Brisbane property that stated it was for sale “off market”???

 

I just received off market property, signed up with re agent but not listed on realestate.com and not going to auction??

This is new lingo for me

This is Melb, agent stated many dont want to go via auction route with snap lockdowns etc has caused some significant grief for sellers

 

Off market can be as simple as going out to the agents DB first, failing that have to do actual real work and pay for advertising. As an over worked or lazy agent, who wouldn't want the easiest / fastest outcome and similar commission? Its a no brainier when you realise the RE agent actually work for themselves at the end of the day. It's not necessarily deceptive or not working in the interest of the seller, but just simply a style of transacting the sale.

 

Developer special. Sold from the bottom drawer to the gullible ? QLD agents up to new ways to offload rubbish for a higher price ? Many spruikers flog property this way. There is a old adage in sales that you can only sell it once. You want two buyers to push a price up..or three...You want more if you are the listing agent or owner. No agent will not show things ...unless they are over pricing it with a scarcity tax added. . Hiding property isnt how to enhance the sale price and is counter productive to the notion of supply / demand. Its potentially a dubious issue. Create a issue of scarcity and buyer who doesnt know better.....

Car dealers are doing it with limited stock. You want to order one...for delivery in 8 months. There are no chips, limited supply from Korea etc etc... Every excuse. Thats $30K to preorder now. You want the in demand model now....Ummmm we may be able to get ONE. Its white. You cant get custom specs and its how its comes. But its already been sold and you may need to pay up to get it from them as they are hesitant... $38K I think they want......Eventually someone gullible will pay. The sales team highfive and brag about selling the demonstrator for $8K above list.

Its a polished turd. with gift wrap. .

 

After reading the headline this is the conclusion I drew.

 

There have been a few off-market transactions around here, all desirable properties >$5m, some with city views others in the most desirable streets.

 

If they were off market, how did you find out they had sold?

 

Signboard appeared after they were unconditional & haven't appeared on the agency website.

 

It is a freestanding house in an inner city suburb.

 

In my mind, off market simply means it hasn't been advertised to the masses. It's not advertised on Domain or Realestate.com.au.

An off market purchase doesn't necessarily make it a bargin. In a hot market bargains are rare. All it may mean is that the agent got the listing, told someone they know who made a quick decision and signed a contract at a price acceptable to the vendor. It might be cheaper than the general market would pay, but perhaps they really wanted it and made a very strong offer just so they didn't miss out. Either way the general market didn't even get to look at it and the vendor likely saved a bit on advertising.

People also used to have an idea that a 'mortgage sale' automatically means a bargain because the owner is in financial distress. In this case the bank has a legal obligation to sell the property at a price that is reasonable. I've seen cases where a distressed sale sells for more than the property might otherwise because multiple people competed for the right to secure a bargain.

My first property was bought before the general public got to see it. A bill board went up on Monday advertising an inspection on Saturday. I rang the agent and was in the property on Tuesday. Did my due dilligence and signed a contract on Friday. The inspection still went ahead on Saturday, with many disappointed people coming through.

This may or may not be considered an off the market purchase. I consider it a good purchase and I was able to secure it quickly without competition. The general public never had a chance, but I still paid the vendors asking price.

 

In BA-land we refer to 3 categories of OM (off market):

1. Off-portal OMs: Advertised via agencies (sometimes on their own websites but not always) but not on the 2 major portals (RE and Domain) Owner may or may not sell but isn't committed to a full campaign and often signs shorter listing agreement with REA. Agents sending out to database contacts.
2. Pre-market OMs: Advertised via agencies (on their sites) 1-4 weeks prior to official portal launch. Owners committed to full campaign and agents sending out early to database contacts.
3. Bona fide OMs: Not yet advertised on any sites/lists/database emails but discovered upon agent contact/private sale canvassing (and appropriately pursued if suitable )

At the end of the day, however, it matters not so much if it's off or on the market. Is it good value? Unfortunately some buyers froth up with excitement over the thought of finding something that the general public don't have access to (let's face it- it's a common human trait ) but the property still needs to be something that matches their criteria and budget. It still needs to be assessed objectively against other stock in the market. It needs to work for their needs (as it appears yours did @Peter_Tersteeg )

As BAs we work hard to locate all suitable properties for sale for our clients and this includes all 3 categories of OM stock. For the last 16 years we've bought in all categories, including advertised listings. The most rare of the OMs are, naturally, category 3, and the majority of these vendors fall into the following groups:
1. "Not 100% ready vendors", often with no Agency Agt or COS ready to go
(both of which are required here in NSW, by the way, prior to showing buyers/marketing a residential property) Genuinely interested in selling, often with a call from an agent or a recent local sale result but just not quite ready
2. "Private or high-end vendors" with prestige properties who desire nil publicity/exposure
3. "Market-tester vendors" looking to snag a hapless buyer willing to pay their outrageously high idealistic well-above-FMV dream price
4. "Re-lister vendors" who were unsuccessful selling previously and wish to avoid the stress/shame/tainting of going online again and having to endure another failed public campaign
5. "Anti-agent private sellers" Those vendors who want nothing to do with REAs and respond to canvassing

Actually, as I'm typing this, I realise there's quite a range of other groups but, in my experience, the above are representative of the majority.