As the market calms down from the heady COVID-driven heights of swamped open homes and wild offers back into (relatively) normal territory, I am seeing more sellers considering an off-market sale of their home, rather than going to market.
Influenced by fears of a market drop, they’re “sellers at a price” – wanting to sell for a given figure if it comes along, but not wanting to commit to either the idea of moving, or the normal costs of selling without one already in the bag.
I can absolutely appreciate that for some, the risk of spending money to prepare a property for sale and advertising against an uncertain end result can be daunting (or unaffordable). There are times where a buyer for one property might be readily brought across to another without the efforts or (upfront) expenditure of “going to market”, providing a winning outcome. Conversely, you might spend several thousand dollars and not get your desired result.
For those that are committed to a move though, with a clear plan ahead - be it relocation, downsizing, or upgrading then the risk of that upfront investment, is one that far more often than not can pay for itself several times over – both in speed of transaction and ultimately the dollars in your pocket. An off-market buyer is often an isolated buyer, with no competition, and no urgency outside of their own circumstances. On-market, there is more likely to be competition driving their actions, and a potential for far greater reward, albeit perhaps not to the degrees seen 12 -18 months ago.
There are few guarantees in life, and fewer still when it comes to property. With experience, the right tools and advisers(!) you can certainly improve the odds to give you every probability of success. I’m not much of a gambling man so I won’t use that analogy but I am a big believer in insurance – and ensuring your property is well presented, priced and marketed is some of the best insurance you can have.
On the other side of things, if you ever come across an advertisement offering a guarantee (in value, in price achieved, growth, etc.) when it comes to a property, then I would be checking the expiry on the snake oil before you take it. Those kinds of deals rarely benefit the ones signing the bottom line.