Properties that are for sale, but aren’t listed on the Multiple Listing Service (MLS) databases of homes for sale. Hence, it is not marketed to the public, but the seller is in the process of selling the property through a private sale.

According to the National Association of Realtors (NAR) 2021 Home Buyer and Seller Generational Trends Report, 11% of all sellers find a buyer without listing their property on the MLS. This is because they get to preserve their privacy by having tighter restrictions on their home showing. It also allows them to sell quickly, without going through the cumbersome process of public marketing campaigns. Some home sellers prefer not to have their homes listed on the MLS databases of homes, as they believe it helps them attract only serious leads who have a high potential of becoming buyers.

However, the limitations of selling off-market is that often times, the property may not sell at its highest value, due to less competition, short turnaround time and limited exposure.

•  Access to more inventory: having off-market listings in your search widens the scope of properties available to you, especially if your search includes areas where the local housing market is hot. This subsequently reduces (or eliminates most of) your competitors.

 

• Avoid bidding wars: with off-market deals, if there are any competitors, it is not more than 2 or 3 buyers, because the deals are not open to the public. This allows you to avoid bidding wars or losing out on unique deals due to being outbid.

 

• Less stress: with the lack of time pressure, off-market properties tend to involve smother negotiations, have flexible transaction times, and avail you the opportunity to do your due diligence in deciding if the property is really what you desire or if it is a right fit for your financial goals.

 

• Lower sale prices: off-market properties sometimes come as a great deal in terms of price, because less competition often translates to lower sales prices, and the seller might be interested in a quick sale. Also, in situations like this, certain costs – like broker commission fees – may also be reduced, helping to lower the buyer’s total purchase price.

• Hard to determine true market value: you may never accurately know the market value of the property, and thus, can end up paying too much or too little for it. This is because without it being publicly listed, it is difficult to determine how much the property will sell for when in competition with other properties, or when a bidding war is involved. To overcome this disadvantage, it is imperative to carry out an extensive real estate market analysis on each off-market property you are considering.

 

• Challenging to find: these properties are often times not easy to come by because they are extremely private. They require a lot of research, patience, negotiating and networking. Also, you may be charged membership fees by off-listing services to have access to their databases.

Off-market properties are typically challenging to find, but Evergreen Investment’s Daily Dose Properties site is an off-market listing or pocket listing which is free and easily accessible for you to take advantage of. You can go through our catalog and identify your interests, or fill out our form letting us know your specific criteria.