BRYCE'S BLOG - EPISODE 7: Follow this expert advice from the host of Location Location Location Australia, Bryce Holdaway.
Stephen and Karen had romantic dreams of settling in to a new home in Tasmania. The home they fell in love with in Battery Point was ‘off market’ which, as a buyer does have it’s advantages.
The vendor may be looking for anonymity, reduced marketing costs or a quick sale to name a few which generally leads to reduced completion and/or access to properties that the general market never realises went on the market.
But there are some cons that come with off market properties that you need to be aware of:
• Harder to determine if the vendor is a genuine seller - it can often be used as test case to simply test the market to see what price they could get.
• Without any advertising or auction campaign the seller can take their time, as there is no commitment or money lost on their part.
• Discretion and privacy is often important to the vendor throughout the process and this can be difficult to navigate and/or negotiate.
• If you’re particularly set on buying in tightly held areas, as was the case in Battery Point or Sandy Bay, just remember that vendors in these foxholes rarely come out which often means the negotiation will often be trickier.
In Stephen and Karen’s case, the double edge of the “off market” transaction is what ultimately stitched them up. Initially they had access to a property that wasn’t officially on the market and therefore had an exclusive opportunity. However, the owner didn’t accept their very reasonable offer and decided not to sell at all. Karen and Stephen were prepared to stretch their budget for the Battery Point property but ultimately missed out because the seller was simply testing the market.
So if you’re looking at a home that’s “off market”, understanding the motivation of the seller is crucial.