In the current evolving property market some of the best property investment opportunities are not found on the regular property portals.
And they don’t have for sale signs out front.
These particular properties are only available to certain people and, unfortunately, it’s not a case of what you know, but who you know.
I’m talking about the about off-market property networks and it takes more than just money to get into these networks, where currently some of the best investment opportunities change hands.
Despite the general market malaise, or maybe because of it, there are currently some great investment grade properties for sale off market, so if you’re looking for an investment that will outperform the average you’ll need to understand how this special property club works.
While a couple of years ago agents would have put their best properties up for auction, today many vendors are nervous about taking their properties to auction if they perceive there is a high risk of failure.
Instead opportunities in these off-market networks have opened up.
In fact over the last few months, more than 60% of the properties that our buyer’s agent at Metropole bought on behalf of clients were off market.
So what is an off market sale?
We come across two types of what I would call “off market” transactions.
Most are really “pre market” opportunities.
You see…after a selling agent lists a new property there’s about two weeks before it hits the Internet.
During this time photographs are taken, floor plans are drawn, the seller must approve the marketing and all this must be loaded on the Internet.
We get the opportunity to inspect and make an offer on these properties before they hit the Internet and the general public find out about them.
And then there are the true “off market” opportunities where for various reasons the vendor doesn’t want to make the sale of their property public knowledge.
And yes they do occur!
Why do vendors request an off market sale?
Some of the reasons I’ve come across include:
- To save on marketing and advertising cost when they’re unsure how their property may sell in the current market. While the vendor may save some costs, the lack of open competition often lowers the selling price and, in fact, they lose out.
- The need for privacy including not wanting the neighbours or family to know until the move happens.
- Financial pressure and the need for a quick sale.
- Divorce, death or a change in personal circumstances which requires the need for a quick but private sale.
- Being nervous about auctioning their property in the current flat market when more than half the properties put to auction pass in.
- The need fro privacy and not wanting lots of potential buyers tramping through their property.
But here’s something you must understand if you want to take advantage of these opportunities.
Like most networks, off-market property networks operate based on reputation and mutual trust of those involved.
That means it’s really hard for individual property investors who only buy a property every few years, or more likely a few properties in their lifetime, to break into these special clubs.
Sure you can register your interest in off market properties with the local real estate agent, but who do you think they’ll call first?
A buyers agent who they’ve worked with for years, with whom they’ve conducted multiple transactions and who they know has access to multiple clients; or you?
Of course they won’t contact you first if you haven’t given them a clear brief of what type of property you’re looking for and explained you’ve got your finance organised.
Similarly they won’t be chasing you if you tell them you’re after a bargain.
No agent wants the reputation of selling bargains in their area.
Just to make things clear…not all off market properties make good investments – in fact most don’t.
So don’t be surprised if an agent tells you they’ve got a great off market property for you only to find they’re trying to offload a secondary property that has failed to sell and has been languishing on the market for months.
You see…many agents list the properties they have for sale by “buying the listing”.
In other words they entice the seller with an inflated price to get the listing and then slowly condition them to the real market price.
This means that many of the “opportunities” you’ll be offered will not make good invetsments, but that’s okay. That’s the way the property market works
The best way to get into this special club is by invitation from a member. In other words…engage a proficient buyer’s agent and leverage off their network and reputation.
And remember…today more than ever you’ll need a firm grasp on market fundamentals, a sound investment strategy and a good team around you to ensure you buy a property that will outperform in the long term.
Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on
If you’re wondering what will happen to property in 2020–2021 you are not alone.
You can trust the team at Metropole to provide you with direction, guidance and results.
In challenging times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that’s what you exactly what you get from the multi award winning team at Metropole.
If you’re looking at buying your next home or investment property here’s 4 ways we can help you:
- Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family. Planning is bringing the future into the present so you can do something about it now! This will give you direction, results and more certainty. Click here to learn more
- Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $3Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment grade property. Click here to learn how we can help you.
- Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
- Property Management – Our stress free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years and our properties lease 10 days faster than the market average.
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