What Does Off-market Mean in Real Estate?

Off Market Properties are properties that are up for sale but their availability is only privately shared and not publicly posted.

Table of Contents:

Can you buy a house that is off-market?

How to find off-market properties?

What are the benefits of buying a house off-market?

What does it mean when a house goes from pending to off-market?

Can you take your house off the market after accepting an offer?

Can a realtor sell a house without listing it?

Is it cheaper to sell off-market?

What is an off-market deal?

When should I take my house off the market?

How do I advertise an off-market property?

What is the meaning of off market?

Why do investors want off-market properties?

What does temporarily off-market mean?

Can you buy a house that is off-market?

Buying a house that is off-market is always an option so long as you’re able to locate it and agree with the owners on the price and the terms of the sale. It’s especially common to buy properties that are off-market if you’re in a tight seller’s market. This is because with an off-market house you’re not likely to be outbid the way that you may have been in a regular sale. This makes this type of house sale particularly attractive to those who either want to proceed with a quick sale or do not want to have to face the disappointment of being outbid by someone else. 

How to find off-market properties?

Finding off-market opportunities can be a bit tougher than finding regular housing options that have previously been listed would be. The main reason for this is that off the market properties aren’t advertised anywhere and as such as the prospective buyer it will be completely up to you to contact homeowners and to try to get them to consider you as a viable option and buyer for their home. If you’re looking to find off-market homes, the best thing you can do is to extend your search for a home both online and offline by using the ideas listed below.

1. Contact real estate agents

An excellent way of finding off-market properties and houses in your area is to talk with local real estate agents to see if any listings are currently exclusive to them. Agents with off-market properties will usually take the chance to show you the house if they think you’re showing promise and interest. 

2. Contact local builders and contractors

If you’re familiar with any of the builders or contractors that are primarily working in the area that you’re interested in purchasing a home in then it may be a good idea to contact them. Normally, contractors are the first to know of any prospective deals coming up for one simple reason. Many of the listings that are still off-market are under renovations and your local contractors and builders will surely know if the house that they’re working on is going to go up for sale or if it will be kept by the property owners for personal use. 

3. Network with people in the area

If you have a specific neighborhood that you have your heart set on you may wish to consider the option of networking with the people who already live in the area. By doing so you may be one of the first ones to find out about any home that is potentially going to go on the market. 

4. Real Estate Auctions

For some great deals on off-market sales, you’ll want to get access to the local house auctions. There you’ll be able to find great deals on off-market properties in exactly the area that you were interested in. 

5. Public Records 

If there is a particular property that you’re interested in, or there is an abandoned property that you’re curious about going to your county or public records is a great way of gathering information regarding the ownership of the property. Once you know who the owner of the property is you’ll be able to contact them directly to see if they’d be interested in selling their house. 

6. Online Resources

While off-market properties aren’t usually listed on real estate websites, certain websites are either entirely focused on off- the market sales or that allow users to post their homes without the use of MLS. Checking those websites out is a great way of finding more properties that are currently available on the market. 

What are the benefits of buying a house off-market?

The main benefit of buying a house off-market is that you’ll not have to worry about going into a potential bidding war where you may be outbid by other people for your dream house. By choosing to find an off-market option you save yourself from the trouble of negotiating, again and again, a contract only to have a third party get the house because they bid more. This also means that houses bought off-market may have a price that is more reasonable or lower than the one found for houses that went into bidding wars. 

What does it mean when a house goes from pending to off-market?

A property on ‘pending’ is usually a property that was posted online and listed through an MLS. If the status of that listing is pending, it means the seller has accepted a potential buyer’s offer, has signed a purchasing agreement and the purchasing agreement’s contingencies have been met. In contrast, an off-market house is privately up for sale but it isn’t listed through an MLS. This means that while the seller is looking to potentially sell their home, they’re keeping the process private. It isn’t usual for an offer to go from pending to off-market since a pending offer normally has a seller who is actively taking the steps to buy the property, while an off-market property is privately listed instead of publicly. This should not be confused with when a seller takes the property off the market after it has been on pending for a while. Taking a property off the market means that the property is no longer available for sale. In the case where the property was previously pending, taking the property off the market usually means that the closing on the sale of the property has been completed. 

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Can you take your house off the market after accepting an offer?

Once you have accepted an offer and have a purchasing agreement in place you are encouraged to take your listing off the market or at least put it in pending to let other buyers know that your listing is no longer available.

Can a realtor sell a house without listing it?

A realtor can sell a house without ever publicly listing it, it just might be a bit harder as there will be a smaller audience looking at the house. Most commonly, properties that go on sale unlisted are known as off-market sales, which means that the sale is completed on a private level without the use of listing websites to promote it. Normally, sellers opting for such a sale aren’t in a haste to sell their house and would rather maintain their privacy in this whole process. Their real estate agent can assist them with that by arranging an off-market sale of their property. 

Is it cheaper to sell off-market?

Selling off-market can be cheaper since you’ll not need to pay for the listing of the property through an MLS or have to pay for expensive marketing campaigns to sell your property. The amount that you’ll save may depend on the sale, but this is normally something that you should be able to discuss with your realtor to agree to the commission that they will receive. 

What is an off-market deal?

An off-market deal refers to a property that is up for sale by the owner but isn’t publicly listed as up for sale. This means that the property is essentially not visible in the market and the only way of gaining access to it or viewing it is if the real estate agent or the property owner agrees to show them the property. These properties can be great deals as oftentimes they end up being cheaper to purchase as they do not require that the prospective buyer goes on bidding was against other prospective buyers. This is why these deals are so wanted and they’re often used by investors who are looking to expand their real estate portfolio. 

When should I take my house off the market?

Whether you have found a prospective buyer or not there are certain situations in which you may find yourself that would require you to take your house off the market. The most common of these is that your house has sold, or a serious buyer has come in and you have entered a purchasing agreement. In this case, you may be instructed with the assistance of your realtor to take the house off the market as you have already found a buyer and you’re moving towards closing on the house. Another reason to take the house of the market is that you wish to no longer collaborate with the real estate agent that you were previously working with. In those cases, it would also be advisable that you take down the listing and start fresh when you’re ready to sell your house again. In some cases, you may be encouraged to temporarily take a property off the market for a time if it has been on the market for a very long time and has not yet sold. This strategy is one you’ll need to discuss with your real estate agent to see if it suits you and if it will assist with the sale of your property. 

How do I advertise an off-market property?

Advertising an off-market property can be challenging at times as you want to advertise it as much as possible only to people who would be interested in proceeding with the purchase. To advertise your off-market property, you may want to consider taking the following actions: 

1. Sharing it through Word of Mouth

2. Creating a Cold Email Campaign regarding your property

3. Uploading it to websites dedicated to off-market property sales

4. Inform people in your Network, both online and offline, that your property is available for purchase

What is the meaning of off market?

Off-market means that the property won’t be listed online through an MLS, meaning that the listing won’t be publicly and widely circulated. Instead, while the property can be sold, the listing will only be shown to a select few individuals chosen by the seller and the real estate agent has taken on the sale. Having an off-market sale usually is a lot more private which is the reason many people seem to prefer it. 

Why do investors want off-market properties?

Investors tend to like off-market properties for a few different reasons. All of these reasons relate to either the economic benefits that are often associated with getting an off-market property or with the fact that as investors they’re constantly looking to stay ahead of the curve to maximize their profits. Either way, they’re able to get a lot more out of the deal by going through with an off-market purchase. 

1. There is no risk of a bidding war, this means they will be able to purchase the property for less money

2. No market competition means they can spend more time inspecting properties and finding the perfect property for their investment

3. By purchasing off-market properties they can stay ahead of real estate trends

What does temporarily off-market mean?

Temporarily off-market means that for some reason the seller has requested that there be a pause in showing the house to prospective buyers. Eventually, the house will be back in the market and available for purchase. 

Summary:

Off-market listings are private listings that aren’t publicly advertised through MLS. These listings can be the perfect way to purchase a property without going into a bidding war. It is for this reason that they’re often preferred by real estate investors as they’re much easier to handle and they allow the buyer a lot more freedom to shop around.