Why it can be interesting to sell or buy your property off-market
Buying or selling a property always means moving a lot of money. With increasing sales prices, privacy plays an increasingly important role, because protecting your own privacy is a particular challenge, especially for groups of people who are in the public eye - unless you are an influencer where showing-off is considered good manners.
It can therefore be of interest to both the seller and the buyer to trade a property off-market.
What does off-market even mean?
Off-market deals do not take place publicly and the property for sale is not publicly offered for sale. For the seller, this supposedly means that no interested parties will become aware of the property. But this is exactly where the advantage lies if, as a broker, you not only maintain close customer relationships with sellers, but also with potential buyers. It is important to know exactly what their search criteria are in order to compare them with the properties for sale.
Advantages of off market trading:
For both seller and buyer, the greatest benefit of an off-market deal is the privacy of both parties. As a rule, only close associates and those privy to the decision know that a sale or acquisition is being considered. That means that no more precise conclusions can be drawn about one's own financial situation.
Another advantage from the seller's point of view is that you can look for a prospective buyer without much pressure and in a relaxed manner, because there is usually no pressure to sell in an off-market sale and the price can therefore be maximized.
On the other hand, an off-market sale can also be advantageous if you have to sell quickly in order to cushion any liquid bottlenecks and not let this become public in order to counteract any negative business consequences. In both cases, a well-established customer database of the broker is of essential importance, so that the right customer can be addressed.
The higher the sales price, the more interesting it can be to save money through an off-market sale, because expensive special budgets for marketing campaigns are usually eliminated. Sometimes lower commission rates are also agreed, but this should be viewed with caution, because exclusive customer databases are built up over years and this also costs money, which is why the commission rates cannot be significantly reduced. Last but not least, prospective buyers for offered off-market deals are already pre-checked and qualified, so that the question of creditworthiness no longer arises and the seller knows who he is dealing with.
In addition to the already mentioned advantages for the protection of privacy, it is especially interesting from the buyer's point of view to be made aware of properties whose sale is not publicly known through this type of marketing. Therefore, the interested party gets access to properties that would otherwise be difficult to get into the market and the probability of finding his dream property is many times higher.
The few disadvantages from my point of view arise depending on the angle of view. Especially in the case of high-priced properties, it can sometimes take years until the right customer buys for the price offered, of course only if there is no pressure to sell. Thus, also a presumed disadvantage for the prospective buyer formulates itself, since it acquires the suitable real estate felt too expensively. However, it must be taken into account that the property under consideration might never have been put up for sale and that the disadvantage thus turns into an advantage and the buyer can acquire his dream property on the basis of this.
Off-market deals play a not insignificant role in my daily business. I have a good selection of interesting properties, whose owners can imagine a sale at the conditions envisaged and to the right interested party.
Recently successfully sold off-market properties:
Architectural significant penthouse overlooking Berlin
Designer apartment in prestigious condominium building Palais Varnhagen by David Chipperfield