In nearly every conversation I have with a prospective client they’ll ask me ‘Do you have access to off-market properties on the Gold Coast?’. There’s a lot of hype in the market about ‘getting ahead of the game’ and buying off-market, particularly after these recent boom years where buying was super competitive. According to Listing Loop, in 2023 approximately 20% off all property sales around Australia were off-market. So it’s definitely worth thinking about off-market opportunities as part of your Gold Coast property search, but there are a couple of things to be mindful of before you place an offer on an off-market property.
Today I thought I’d unpack what an off-market property actually is, why they matter, what to be cautious of, and how to find them. First, let’s take a look at what off-market properties actually are.
What are off-market properties?
Off-market properties are homes or investment properties that are sold without being publicly listed on major real estate platforms like realestate.com.au or domain.com.au. Instead, they are marketed privately through a real estate agent agent or sometimes through direct negotiation with the seller.
If sold by a real-estate agent, off-market sales are generally made by the agent using their existing network oy buyer’s agents and direct buyers to find a buyer interested in the property without any mass marketing or promotion taking place. You won’t even see a for sale sign appear on the property until the sold sign goes up.
What’s most important to understand when considering an off-market property is the same as an on-market property: what are the sellers motivations for the sale? And for off-market properties, whey are they selling off-market? It may be that they need a quick sale, they value privacy and don’t want all their neighbours traipsing through their open homes, or they might simply wish to test buyer interest before going public.
Before you make an offer on any property you should always understand the buyer’s motivation as this helps to determine your offer and conditions.
Benefits for buyers of buying off-market properties
1. Less Competition: Since these properties aren’t advertised to the general public, you’ll typically face less competition. This means a better chance of securing the property before a bidding war starts.
2. Exclusive Opportunities: Off-market properties often include unique or highly desirable homes that don’t need to be listed because they attract buyers on their reputation alone.
3. More Negotiating Power: Without the pressure of public offers, negotiations for off-market properties can often be more flexible, allowing you to have deeper discussions about price, settlement terms, or additional conditions.
How to find off-market properties
1. Work with a local Buyer’s Agent: This is genuinely just one of the benefits you can get from working with a local Buyer’s Agent like me. The key to finding off-market is having relationships with local agents and staying in touch with them regularly so when an opportunity comes up you are the first person they call. This can be really time-consuming, but it’s a key part of my job as a buyer’s agent. Sometimes I even get access to off-market properties directly from home owners – for example, at a recent auction I attended, after the auction was finished the neighbour came up to me and asked if I had a client who might be interested in their home. which was not on the market.
2. Build Relationships with Local Agents: If you’re not using a buyer’s agent then you’ll need to focus on doing this yourself. Real estate agents often keep a list of pre-qualified buyers they notify when a property is about to come on the market. Letting agents know you’re serious and ready to buy within a certain timeframe can put you at the front of the line for off-market opportunities.
3. Letter box dropping: It’s old-fashioned, but sometimes a simple letter-box drop in the area you’re interested in buying in can unearth a home owner who might be toying with selling. Owners who may not have considered selling might be open to a deal if the right buyer approaches. In this instance you need to really dig deep into the owner’s motivation to sell to ensure you don’t pay too much.
4. Private Sellers: Keep an eye out for private listings on online community boards or Facebook Marketplace! Some sellers keen to sell their own home without using an agent do use these as a sales platform, but be mindful that the negotiation process without any agents involved might be complex and stressful.
5. Exclusive Listings in Newsletters: High-end real estate often gets snapped up by investors and private buyers before it’s ever listed publicly. Some agencies offer access to these types of properties and will let their database know when they become available so signing up for private alerts and newsletters from these agencies can help.
A word of caution about buying off-market
As with all property buying opportunities, if you’re buying off-market make sure you’re paying the true market value for the property. Depending on the motivation of the seller, they may have an unrealistic view of how much their property is worth. They may just be testing the market, telling their agent ‘I’ll only sell it if you can get me $X’ when $X is well above market value.
In addition, some off-market properties may be getting sold that way because there’s a building or pest issue with the home and the seller is looking to sell the property quietly to ensure a successful sale. Remember that in Queensland it’s a case of ‘Buyer Beware’ so make sure you do through due diligence before you buy.
What’s even better than off-market?
In my view there’s something even better than buying off-market, and that’s buying pre-market.
Pre-market is when the seller has engaged the agent and they have committed to listing the sale, but they give the agent authority to sell the property before any marketing is done or the sales listing goes live. The reason that I think this is an even better option than an off-market sale is because the seller is motivated to sell, and they are potentially likely to be more ready to meet the market with their price.
So, if you’re contacting agents to ask about off-market properties, make sure that you ask them for pre-market as well.
If you’re considering buying property on the Gold Coast and would like some assistance with accessing off-market and pre-market properties, book a call with me today.
— Matt Koch, Gold Coast Buyer’s Agent