OFF MARKET DEALS

 


OFF MARKET DEALS

Most astute, seasoned buyers/investors are always looking for an off-market deal. From time to time brokers will advertise the sale of a property that, after some research, I learn never hit the market at all. All asset classes, from single-family homes, large apartment buildings, industrial warehouses or vacant land, seem to be pretty routinely bought and sold off the marketplace.

Like anything else, Off Market Deals have their pros and cons, but who really benefits from selling or purchasing a property that never went up publicly for sale.

The real estate broker, for one, certainly stands a fair amount to gain from this type of transaction. Off-market property exchanges involving a broker typically occur when that broker has a buyer already lined up to purchase the subject property/site. Without expending much effort, the broker has a nice & easy pay day.

Or consider the buying side. If a property never goes to market, then the real value isn’t always known or paid to the seller. More often than not, off market deals, pertaining to particular assets at least, end up closing for below the true value. What a great deal for a buyer!

But what about the seller?

The only way to determine an accurate price for a piece of real estate is to present the property to the marketplace. If a home, building, or parcel of land is priced too high, the market activity surrounding that listing will reflect that. Priced too low, a flurry of activity will ensue. Exposing the property to the marketplace for ALL potential buyers is usually the best way to get a fair sales price.

Of course, there are exceptions to this, and not every off-market deal is a cheating scheme or quick solution for a broker. However, it’s still true that you’ll never know what a property COULD have gone for on the open market if it’s sold behind the curtain.

If you believe your situation warrants an off-market deal, or are considering whether to list your property or not, let’s visit.

 

-Brad Neihouser, 765-427-5052

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