Discover the benefits of selling your house off market, including privacy and flexibility. Learn how to navigate the off-market sales process.
The prevalence of online real estate listing sites means a vast sea of homes is just a click away. However, thanks to off-market listings (also known as pocket listings), quite a few homes may be hidden beneath the surface. Selling a house off market, while less common than selling a home on the open market, can be quite beneficial to some homeowners. How does it work, and what should you know before selling your house off market? Read on as we explore the ins and outs of off-market sales.
When a homeowner decides to sell their home, they’ll typically put the property “on the market,” enlisting the help of a real estate agent to get the word out and generate interest or lining up potential buyers themselves through a for-sale-by-owner listing. The same tends to be true when selling a house off market; however, the whole process for off market sales is a bit more discreet.
To sell a house without a listing, homeowners may make their home’s availability known only to real estate agents (or a team of trusted friends and neighbors) rather than a public audience. So, while the information contained in a real estate listing—photos, amenities, square footage, and history—will be available to interested, in-the-know parties, it won’t be found on public sites like Zillow or Realtor.com.1
Many real estate professionals share off-market listings with potential buyers they know will be interested, be they past clients with specific tastes or aspiring buyers on the dream home hunt. So, while an off-market sale will undoubtedly attract less attention, it may attract more of the right kind of attention.
Given the convenience of online listing sites, why would someone choose to sell their home off market? As you’ll soon discover, there are a few compelling benefits of these off market opportunities.
Some may find the thought of posting detailed images of lived-in spaces, a property address, and an asking price online overwhelming. In an off-market sale, however, this information is available only to real estate agents, a small group of vetted potential buyers, and anyone you choose to share it with, making it an appealing option to those looking for some extra privacy through the home-selling process.
Choosing to sell off market can also create some added flexibility, with sellers remaining more in control of their timeline than had they listed on the open market. This scenario allows sellers to dip their toes in the water, taking extra time to find the right buyer or gauging interest before opening the listing up to the public. Sellers looking to take it slow may find the flexibility they’re after with an off-market sale.
Selling on the open market can mean an opportunity to get in front of more potential buyers, but it also puts homeowners in competition with hundreds and thousands of other sellers. To stand out, many of these sellers will invest in things like professional photography and home staging. While home staging costs can add up quickly, there are also notable benefits of staging a home that may help you get the price you’re hoping for.
Off market, there are far fewer sellers to compete with and fewer reasons to invest in these and other marketing tactics.
Selling a house off market can also present some unique challenges that sellers should take note of.
Would you rather get your home in front of 10,000 eyes who may or may not be interested in it or a group of 20 hand-picked by a real estate professional? This is the question being asked when considering an open-market sale or an off-market approach.
An off market listing will undoubtedly expose your home to fewer potential buyers, but there’s still a chance that there will be more legitimate interest and motivated buyers among this smaller group.
Competition, especially among buyers, can be good for sellers—driving bidding wars and raising asking prices in turn. In an open sale and in the right market conditions, this competition is common. But in an off-market sale with fewer buyers to compete with each other, bidding wars with multiple over-asking-price offers are virtually nonexistent. Sale prices tend to be a bit lower as a result.2
Off-market sales aren’t for everyone or every situation, but they can sometimes be the right strategic choice.
The clearest of these is when privacy is a priority. If you’re a high-profile homeowner, or simply someone who doesn’t want their address, home value, and interior design choices plastered on the internet, selling your house off market can be a great way to preserve privacy.
Deciding not to list your home on the open market can also allow you to test the waters and gauge interest in your home. This slow-and-steady approach can help you find the right buyer, but it can also expose weak points in your home’s marketability before you take it to the general public.
While selling a home off market can differ greatly from a traditional, open-market sale, the fundamentals of real estate still ring true: it’s helpful to have a well-networked real estate professional in your corner. But that’s not the only way to sell your home off market.
As with a traditional sale, the first step for many homeowners considering an off-market sale will be finding a seasoned real estate agent with an extensive network and specific experience with these types of transactions. These professionals can connect you with serious and qualified buyers—and they may even have potential buyers in mind from the moment you engage them, helping to speed up what can otherwise be a slow process.
Selling your home off market doesn’t have to include a real estate agent, however, and you may decide to pursue the for sale by owner (FSBO) approach instead. Should you go this route, tapping into real estate investment networks can be an excellent way to find potential buyers. These groups are typically full of real estate investors looking for properties to flip or add to a rental portfolio, many of whom are familiar with the nuances of off market deals.
Of course, you can always do things the old-fashioned way: floating your property’s details to a group of your design, thus maintaining the level of discretion you’re after. This prevents you from creating a web listing, as might be necessary should you turn to an online real estate investment group, instead of relying on word-of-mouth marketing. But what you gain in privacy, you may also gain in time spent trying to sell your home. Considering this approach will likely take far longer than a real estate agent–assisted sale.
Still, for those who want to keep their information private, this extended timeline may be well worth it.
Opting for an off-market sale can be a great, highly strategic way to protect privacy and survey the current market. But for homeowners looking to skip the rigamarole of listing a home online in hopes of expediting the sale process, this approach may not be the right fit. Before you phone up a real estate agent or start working on your listing, consider Truehold’s sell-and-stay transaction.
With Truehold, you sell your home directly without placing it on the open market. This can help you accomplish many of the same goals as an off-market sale, but with an added perk: You can continue living in the home as a renter.* Casually shop for your next home, start construction on your dream home, fund your retirement, or take a breather while you enjoy the stress-free renter life—with your equity in hand, your next move is entirely up to you.
Depending on your goals, Truehold’s sell-and-stay transaction may help you accomplish them. Contact Truehold today to see if this off-market approach is right for you.
Disclaimer*: After the home sale, you must comply with the terms of your lease to continue living in the home. This includes making timely payments on your rent for your minimum lease term (which ranges from 6 – 24 months).
Sources:
1. Forbes. The Pros and Cons Of An Off-Market Home Listing.mhttps://www.forbes.com/advisor/mortgages/off-market-home-listing/
2. Homelight. Selling Your House Off Market: Is It Right for You? https://www.homelight.com/blog/selling-a-house-off-market/
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