The benefits of going ‘off market’

18/05/2018

Here’s a few reasons why an ‘off market’ sale can form an integral part of your home sale preparations.

 

What is an ‘off market’ sale?


Think of an off market sale as ‘soft launch’ - a way of introducing your property to the market before your auction date. We approach current buyers in our books (those who have been looking for a while or who have actively participated in past auctions) to gauge interest levels for your property.

 

The main goal of an off market sale is to get price feedback before putting your property to auction. If this strategy is used correctly, it is a very powerful way to support and boost your auction campaign.

 

Key reasons to employ an off market sale


1.  Price feedback: this helps you intimately understand how your property is positioned in the market to ensure you set the correct reserve price. As you get a good idea of how much your current home might sell for, you can also accurately budget for buying your next property.

 

2. Sale Preparation Support: During this process, potential buyers view your home 'as is' - not in the 'photo ready' state (as is required when going to auction). Any feedback you receive during this time can help you make minor adjustments to further prepare your home for auction. Taking advantage of this information upfront often means you end up with a better sale price.

 

3. Getting the timing right: A good sale price depends on market timing. As an example, sometimes attempting to sell during the holiday season yields low interest levels. Waiting until the new year often brings better results in terms of timing and potential buyers.


Consider this when selling off market


An off market sale is purely a process to test the market. The price feedback you receive will only be indicative. Do not be disappointed if an offer comes through lower than what you expected. It’s imperative you keep in mind this offer has no competition behind it, nor any marketing spend.

 

Conversely, if an offer comes through and you are happy with it, remember you can still achieve a higher result by adding in some healthy competition.

 

The case study


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Our recent sale of 3 Sunrise Dr Mulgrave is a great example of how well the off market sales process can work.

 

Our clients, Tu and Ken, approached us in late November last year. They told us they had started looking for a new property but had hit a roadblock. They were unsure about what they could afford because they didn’t know what their current property was worth. Different agents told them different prices so we suggested they try the off market approach as timing-wise, it was getting too close to Christmas to launch their property and organise an auction.  


Employing the off market strategy

 

We contacted 15 interested buyers who all had varying levels of price feedback. The highest offer was $920,000 (however, we felt their property could easily fetch at least $950,000 based on what had sold leading up to Christmas).

 

Although the $920,000 offer was conservative, it still gave Tu and Ken a good confident and indication of how much they could spend on their next property.

 

As we knew introducing competition would get them a better price, we suggested they hit the market with their auction at the start of the new year. The property came on to the market on 15 January 2018. It was then auctioned on 10 February with a reserve price of $920,000 based on price feedback during the off market period plus information gained during the opens.


The result

 

After a fierce competition, the property SOLD for $1,020,000 - $100,000 ABOVE their reserve.

 

Of course, anything above reserve is a great bonus but using the off market approach helped Tu and Ken achieved much more than they had expected. In the process, it also gave them more to spend on their new home!

 


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Audwin Wibrata is the Director of WIN Real Estate who adapts creativity from lifestyle point of view in his selling approach . He recognises the vitally important role of new technology that plays in today’s real estate market.

 

For a private discussion on your plan of selling please contact Audwin on 0403 205 759 or email to audwin@winrealestate.com.au

 

You can also connect with WIN Real Estate on social media at: https://www.facebook.com/winrealestate.com.au/

 

#winrealestate #realestateagent #propertyauction #sellinghome #mulgraveproperty #wheelershillproperty #mulgraveagent #wheelershillagent

 


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