Properties are sold using different methods. The most common methods of selling a property are auction, private treaties and expression of interest (EOI)
In this blog, we will discuss another method i.e., an off-market property sale.
Definition
A sale that has not been officially marketed to the public is called an off-market property transaction. It is a method of sale which benefits both the vendors and buyers.
Moreover, it is sound to say that this method of selling has proven to be quite popular, especially in the last 12 months.
Off-market, as the name implies, is a method of sale in which minimal advertising is used. Less scheduled inspections take place. These have been significant advantages for vendors, especially during the pandemic. In other words, vendors can also find a buyer by selling the property off-market while keeping a lid on the market cost that might be incurred from a private treaty sale or auction.
Benefits for Buyers
On the other hand, purchasing off-market happens when a buyer presents an owner with an acceptable offer. In this case, the buyer benefits from off–market sale in a way that fewer eyeballs are set on the property as compared to a more conventional private treaty. As the name itself implies, the property remains off-market and people hardly get to know about it. This is definitely not the case in conventional private treaty or under the hammer sale.
Some people even consider pre-market sales to be the off-market sales. A pre-market sale also occurs when a real estate agent contacts the database of buyers before listing a property in the market to gain interest.
Off-Market Sale at Raine and Horne
Off-market property sales are not new in the property market. However, as a method of purchase, off-market transactions are less common compared to auctions and private-treaty sales. However, this method is slowly growing in popularity.
Just to give recognition to the growing interest in selling and buying properties off-market, our website has an “Off-market” tab under the ‘Buy’ menu of the website.
All you need to do is create an account and you will be able to beat the masses to view our exclusive off-market properties before those are advertised publicly.
Registered Raine and Horne buyers will receive an email at the moment when a new property is listed and the one that matches their requirements. It is a part of signing up.
Off-Market Regional Sales
Off-market sale is considered the best if you are selling a regional property and if you feel the asset might be of interest to the investors, as per Angus Raine, executive Chairman Raine and Horne. “Suppose, if an investor is looking for a property in regional Australia, you can do that for under $500,000 also. There are no emotions but just a yield play,” he said.
With off-market sales, buyers can address tax problems in days, and the vendor has a sale with minimal fuss. To know more about selling a property off-market, just contact your local Raine and Horne real estate agents.
3 Ways to Sell Your Property
Every home/ place is different, so the process of selling will also have to reflect uniqueness. There are a few ways to sell your home depending on your needs as a vendor (seller), how quickly you want to sell, the type of market, location, and a host of other things you will have to take into account – all this can be done with the help of an experienced real estate agent.
If you are asking yourself how to sell your house fast, take quality time to consider some options.
Each method will have its pros and cons and the one you pick will affect the sale of your house/ rural acreage.
The three most common ways are:
- Auction
- Private treaty
- Expression of interest (EOI).
Knowing how each of them works and what they offer will help you decide which one is the best option for you.
How Does an Auction Work?
Sellers who want to attract buyers and get the highest possible sale price often choose to put their house up for auction. This is a selling method which thrives on the element of face-to-face competition between the hot buyers.
An auction is a publicly or privately held event organized by real estate agents. It is the final stage after weeks of marketing and advertising, with potential buyers who gather to bid on your property until the highest price is offered.
Before the auction starts, your real estate agent helps in setting a reserve price i.e., the minimum amount you are willing to accept for your home. In this manner, you are guaranteed a selling price that is equal to or is greater than the amount you want.
Auctions also create a sense of urgency not just because there are other bidders but also because of the deadline. Expression of Interest Method
The goal with this method is to gather buyers’ best offers without disclosing the final price that the seller is willing to sell for.
How Will This Help?
The buyers will submit the best offers in writing from the beginning – there will be no negotiation involved which pushes the process faster.
Once you are ready to sell, your property will go on the market for a few weeks.
Potential buyers will have a chance to take a look at your house, make sure their finances are in place, and any other thing that needs to be sorted out on their part is put in the offer.
Another advantage of this method is that it provides the sense of urgency of an auction without any stress of public bidding.
However, due to the blind nature of expressions of interest method, people might put in lower offers if prospective buyers are not aware of the true value of the property.
Private Treaty
Out of the two, private treaty is perhaps the most balanced approach. As the name itself suggests, it avoids uncertainties that come with public display.
With this method, your real estate agent and you will decide the price you want for the house. Then, your real estate agent will individually negotiate with potential buyers who have shown interest in the property.
This method gives you better control over the sales and allows all parties to make more informed decisions. This is one of the most popular methods of selling properties in Australia.
The best method of selling the property will depend on your home and you. If you are eager to sell your house quickly and at the best price, then an auction could be your go-to method. If you need more free approach, consider a private treaty method.
Whichever method you choose to sell your house, remember if you hire a real estate agent, he/she will help you sell a property by using the method that would suit the best without compromising on the price and profits. For anything related to selling or buying properties in rural acreage, contact Raine and Horne’s real estate agents.