In today’s real estate market, record low prices and significant windfall opportunities mean that more and more people are turning to off market selling. With potential of better prices and higher quality bidders, “off market investment property” deals are growing in popularity.
What Is An “Off Market Investment Property”?
An off market investment property is simply a sale that takes place outside a formal setting. These deals are usually negotiated privately between buyers and sellers or their brokers. Off market trades go on in private out of the public eye.
What Does This Mean For The seller?
From the sellers perspective there are a range of benefits to selling off market. If a property sale falls through at the last minute, which is not uncommon, a property can be seen as de-valued in some way. By conducting negotiations in private, future potential buyers will not be aware of any previous trouble you have had selling a property. Additionally, on market selling causes a lot of disruptive activity. Constant showings and on site inquiries can disturb occupants, tenants, and employees at a property, and will take a long time to reach a sale.
Benefits for the Buyers
For buyers there are a lot of costs associated with on market deals and the success rate is far lower than with an off market alternative. Architects, attorneys, due diligence, and engineers all have to be brought into the matter with no assurance that it will ultimately pay off. Other buyers are put off putting the time and effort into assessing a property because they have only a small chance of actually out bidding the other interested parties.
There is a lot of evidence to show that off-market transactions are preferred by investment property buyers as well. Many will even pay for the chance to get a first viewing or private showing of a property. Off market sales are perhaps most beneficial when there are complications or problems associated with a deal. It allows all parties involved to have control over the privacy of the sale process.
Attract Qualified Buyers
Off market income property often generates higher bids as buyers attempt to pre-empt an auction. With much higher chances of finalizing a deal, buyers are usually more confident that their time, effort, and bid will be rewarded. To get the best offer from a smaller off market pool of bidders, a seller must be certain that they are asking for a good price.
Utilizing Technology
In real estate, both on market and off market, technology is becoming increasingly important. It allows sellers to showcase their property to a global market, which in off market investment property means finding a higher number of more qualified buyers. When using technology, is best to consult a real estate broker who has experience in this field of selling. This allows you to ensure that you are using the best approach, minimizing risks, and getting the highest possible price.
The Proven BuyersUtopia Process
At BuyersUtopia the patented transaction process we provide allows our clients to conduct all sales off-market in a secure way. Our tools enable sellers to place assets with anonymity before they engage with a buyer. A virtual “deal room” is used to provide confidential disclosure of purchaser qualifications and property details.
The system gives you detailed pricing and demand analysis that can help you to determine the best price, and it also formulates a list of qualified buyers. Using BuyersUtopia for your off market income property deals allows you to get exposure for your property and well-priced sale without the slow pace and worry of an on market transaction