Whozoo tips #13 - Should I sell my property ‘off market’ or on the open market?

Published: 15/01/2024

Selling a property "off-market" means that the property is not publicly advertised and is not listed on the open market. Instead, the sale is conducted privately, often through direct negotiations with potential buyers or a select group of individuals. Both selling on the open market and off-market have their own advantages, and the decision depends on your specific circumstances and goals. Here are some potential benefits of selling off-market and factors to consider.

Benefits of Selling Off-Market:

Privacy and Discretion:
•Off-market sales offer a higher level of privacy. If you value discretion and don't want the details of your property sale to be widely known, an off-market approach allows you to keep the sale confidential.

Exclusive Access:
•Off-market sales give you control over who has access to your property information. You can selectively target a group of potential buyers or investors who may have a genuine interest in your property.

Exclusivity and Prestige:

The exclusivity of an off-market sale can create a sense of prestige around the property. Some high-end or unique properties are marketed off-market to create a sense of scarcity and exclusivity.

Reduced Time on Market:
Since off-market transactions are typically more targeted, they may result in a quicker sale. This can be advantageous if you are looking for a swift and discreet transaction.

Flexible Negotiations:
Off-market deals can provide more flexibility in negotiations. There may be fewer competing offers, allowing for more personalized negotiations between the seller and potential buyers.

Considerations for Off-Market Sales:

Limited Exposure:
•One of the main drawbacks of an off-market sale is the limited exposure. Without public advertising, your property won't be visible to a broader pool of potential buyers, potentially affecting the final sale price.

Potentially Lower Offers:
•With fewer buyers aware of the sale, there may be less competition, which could lead to lower offers. The absence of a competitive bidding process may affect the property's market value.

Risk of Undervaluation:
•Without the transparency of an open market, there is a risk that the property may be undervalued. Open market sales often involve a competitive process that helps establish the fair market value.

Benefits of Selling on the Open Market:

Maximum Exposure:
•Listing a property on the open market provides maximum exposure to potential buyers. This can lead to a larger pool of interested parties, potentially resulting in a higher sale price.

Market Competition:
•Competition among buyers on the open market can drive up the sale price. Multiple offers can lead to better negotiation leverage for the seller.

Establishing Market Value:
• An open market sale provides an opportunity to establish the true market value of the property through competitive bidding and a transparent process.

Broker Expertise:
•Working with a reputable estate agent can bring expertise in marketing and negotiating, ensuring that the property is effectively presented to a wide audience.

Considerations for Open Market Sales:

Publicity and Exposure:
•Selling on the open market means that details of the property sale will be public, potentially attracting attention from competitors, neighbours, or the media.

Extended Time on Market:
•The open market may involve a longer sales process as the property is exposed to a broader audience, and it may take time to find the right buyer.

Less Privacy:
•The open market approach offers less privacy compared to off-market sales. If confidentiality is a priority, an open market sale may not be the best fit.

Choosing Between Off-Market and Open Market:
•The decision between an off-market and open market sale depends on your specific goals, the type of property you are selling, and your preferences regarding privacy and exposure. Consider consulting with a reputable estate agent who can provide insights into the local market dynamics and help you make an informed decision based on your individual circumstances. If privacy is crucial and you have a targeted group of potential buyers, an off-market sale may be suitable. However, if you seek maximum exposure and competitive offers, an open market approach may be more appropriate.