Press Article
METRO - 7 April, 2011
Off-market properties
By Jo Eccles
Whatever their budget, clients always ask me about ‘off market’ properties and how to access them – many regarding them as the Holy Grail of a property search.
‘Off market’ properties are as they sound – properties not for sale on the open market. There are two main ways to access them; firstly, you can approach a homeowner to see if they’re interested in selling, and secondly, you can buy a property directly through a private seller – someone who is actively selling their property but has not instructed an estate agent. Instead, they may be relying on word of mouth – ‘quietly’ telling people they know and trust to gauge interest.
If you are approaching a homeowner who isn’t planning on selling; a neighbour or landlord for example, you will need to give them a financial incentive to sell – this can be expensive, especially as they know that you are keen to purchase from them. Whereas, buying from an independent seller can allow you to negotiate on the price because the vendor will save on estate agency fees (anywhere between 1% and 2.5%) and less people will have viewed the property, so it may have received less interest.
However, direct sales through the vendor are notoriously difficult to complete and if the seller hasn’t had a professional valuation done, it may be difficult to agree a fair price. If they think their property is worth more than it is, it might be difficult to make an offer without offending the vendor, but similarly, if the asking price is too low, they may decide to test the open market prior to exchange and instruct an estate agent, who will undoubtedly suggest a higher asking price.