What constitutes off-market property and how is it accessed?

Last year, more than 60 per cent of the properties Prime Purchase bought on behalf of clients were “off market”.

This isn’t surprising as it is often the case that the very best properties will not reach the open market. However, there is much confusion regarding what constitutes off market, and the navigation of these murky waters without considered advice are not without their own risks. 

The agreed consensus is that off market properties are not listed by an estate agent on either the online property aggregators, the estate agents’ websites or other social media channels.

First, there is the pre-market. These are properties that are going to come to market but haven’t done so yet. There is a small window of time between a vendor formally instructing an agent to sell their property and the photographs and floorplans being taken for the brochure and it being listed online. It is within this window when the best qualified, motivated buyers and their representatives are contacted. The loudest beaks are fed first so keeping in constant communication with all the estate agents about any suitable houses coming to market is key.

The second is privately-marketed properties. An owner and their agent may decide that they don’t want to market or launch their property to the open market. This can be for a myriad of reasons, the most common of which are timing: privacy and discretion; testing the market on price; or because the owner is a discretionary seller who is only interested if an ambitious price is achieved. An agent will only offer these properties to the very best buyers and their agents, who can be trusted to be discreet.

Lastly, there are those that don’t involve an agent at all. These are properties sourced via word-of-mouth from one’s network (lawyers, bankers, surveyors, previous clients, friends and family etc) or direct private approaches made to individual owners. These can only be accessed by having a track record in an area and by being proactive in sourcing.

Accessing these properties by being front and centre with the agents or having an expansive network is only half the battle. Few of these properties have been ‘market tested’ and establishing the true value of any home, least of all those that are off market, is not straightforward. It Is really hard for even the most experienced buyer to have confidence in what they should, or more often shouldn’t, be paying. This is where the advice on values from a trusted and experienced buying agent is critical.