What do Pre-Market and Off-Market mean in real estate terms?
“Off-market” and “pre-market” properties are two terms being thrown around a lot in the Sydney property market. So let’s explore what they mean, who gets access to them and how it affects your chance of seeing the entire property market.
Pre-Market Property Sale
Pre-market is a property that has been listed for sale by a real estate agent but not yet publicly advertised. The intention is to go public eventually unless it is snapped up. A selling agent lists a new property and then it takes between 10 days and two weeks before it hits the Newspapers, property magazines and Internet. Sometimes this is offered to the exclusive few before the sign board has gone up and before professional photos are taken.
A pre-market property is sometimes shown through an exclusive buyer’s agent pre-market viewing, where some buyers agents are invited to inspect a week or two before it hits the internet. The real estate agent with the listing will ring their “A grade” clients and offer them this great new property they have just listed for sale. If they don’t get anyone to bite, they could also contact their B-grade buyers that have missed out on a similar property sold through that agent. Not all agents contact their own database and not all agents even offer their listings pre-market. Getting a pre-market opportunity is all about getting access to the property just before everyone else, and you need to be in contact with the specific agent that has the listing.
Off-Market Property Sale
The more elusive, discreet opportunity is the off-market. This is a property that is sold without being advertised to the general public. It could be a friend selling their property to another friend, a developer chasing an owner directly, or a real estate agency with an agency agreement to sell a property that is not yet been advertised.
You may ask, if you’re going to go to the trouble of finding a selling agent and having your property ready for sale why wouldn’t you open to the public? There are many reasons people sell their investments or homes off-market. When a property goes on the market you open it to the world. Advising the address, the owner’s name (listed on the contract of sale) and usually your possessions and lifestyle are on display on the internet and to the general public. This can be an invasion of privacy, potential security risk and a lot of work to have the place in pristine condition several times a week for a month or so.
As you can see, there are benefits for selling or buying a property via this method which we point out below.
6 Benefits of Off-Market buying and selling
1. Bypass bidding wars
Buying a property off-market allows you to bypass the bidding wars at a property auction which can raise the price of the property up 10%, 20% and even more in some cases.
2. Simplicity of purchase
When you buy a property off-market, there are a lot fewer hoops to jump through and a lot more flexibility on viewing times without the crowds.
3. More Flexible Negotiations
With less time pressures, both parties are also far more relaxed when they come to the negotiating table. This can lead to timely negotiations that would never be viable in an open market. Buying off-market, gives the buyer the gift of time and allows for greater due diligence on both, the part of the seller and buyer.
4. Off-market property purchases are more exclusive
Tired of competing against hundreds of prospective buyers over a property that you really want, then working with a property agent to find you an off-market purchase can knock out the competition and make all the difference.
5. Sell your property out of the spotlight
Selling off-market, enables a seller to keep the property out of the spotlight. This option is no longer just for high-end property, everyday Aussies can take advantage of off-property deals if they know the right agents. It is also ideal for those wanting to sell their property without upsetting a current tenant or who want to keep their personal purchases private.
6. Test the property market
If you intend to sell sometime in the future, an off-market enquiry is a good way for a seller to test the property market. Best of all, if you get a great deal, you have a choice to accept or wait for something better to come along.
In today’s hot market, supply of properties available for sale are limited and in certain price points, supply cannot keep up with demand. At Etch Real Estate be able to assist in discovering these pre-market and off-market properties. These types of properties cannot be found on sites like www.realestate.com.au or www.domain.com.au. Our Agents are professionals who spend a lot of time speaking to homeowners and have an extensive knowledge of what is available in the market.
Etch Real Estate has developed a number of strategic contacts in Sydney, plus we have access to properties that the general public will never see. So if you are a property buyer who is looking to gain a competitive edge in the property market or a seller who does not want to advertise the sale of your property for various reasons, contact us today on 02 9949 4511 to see how we can assist you.