In the real estate investing business it’s all about what you know. The more knowledge you have about real estate in general and real estate investments in specific, the higher your success rate will be. Every day there is something new to learn about in real estate that will take you one step closer to becoming the successful real estate investor you’ve always dreamed of becoming. So let’s start off our day by learning a thing or two about real estate.
The real estate term of the day is OFF MARKET PROPERTIES. That’s right, we’ve all come across this term yet never took the time to actually understand what it means or how real estate investors can benefit from off market properties. So let’s take a closer look.
Related: How to Find Off-Market Real Estate Properties
What are off market properties?
Off market properties is a term used to define a real estate property that is selling, or has already been sold, without any public advertising. It’s a term that sometimes pops up in real estate investing conversations and is usually linked to a property that needs an immediate sale, where the sale is often more important than the sale price. You would be surprised to see how much properties are sold each month without being listed publicly on real estate listing sites. The question is: Do off market properties that are sold through such a stealthy way come with advantages for real estate investors? Of course they do! Nothing in real state comes without an advantage or two.
Advantages of off market properties
1. Get me out of the spotlight!
You ever wonder why we never see celebrity homes for sale anywhere? It’s because they are deals done off-market, so nothing is publicized. In real estate, possibly the number one issue all buyers struggle with is competition. You see, it takes time and a lot of effort to search for your dream home and once found the frustrating part is waiting for acceptance from the seller. That’s when your competition can swoop in and pull your dream home out from underneath you, offering the seller a better price that could be beyond your own budget. That is why the secrecy of off market properties is an advantage at its highest for so many home buyers and real estate investors alike.
Related: 3 Ways This Real Estate Agent Tool Conquers Competition
2. The gift of time!
In a huge competitive market like New York or Chicago, one major problem buyers face is that time is never on their side. Sellers expect a quick sale, and buyers rush to close on an apartment before it’s gone. Due diligence often goes out of the window as a result. Off market properties are different. Homeowners usually aren’t in a rush to sell. And because competition is much lower, prospective buyers get the time to look over the real estate property thoroughly before making an offer. Both parties are much happier as a result.
3. Greater negotiating power!
Whatever the reason may be, sellers of off market properties are often looking for the fastest sale possible, which leaves the door open for lower offers and greater negotiating power. Buyers can negotiate over the price, the down payment, and any issues concerning the property directly with the seller. With no time pressures, both parties are also far more relaxed when they come to the negotiating table. This can lead to the kind of contracts that would never be possible in the open market.
4. Sellers can test the market
The beauty of selling off-market is that you don’t have to commit to anything. If you are thinking of selling in the near future, an off-market deal can be a great way to test the water. If you get a great offer, you can choose to accept it. If you don’t, you haven’t lost anything. And because off market properties are not listed anywhere, you won’t have upset tenants, family members, or your neighbors either.
OK, so we talked about few of the many benefits of off market properties, so by now you must have a pretty good idea of the great glory that comes with such real estate investments.
So, let’s quickly talk about how real estate investors can find off market properties for sale.
Related: How Do You Find Off Market Properties?
How to find off market properties for sale
Your real estate agent is the key to discovering off market properties, so always make sure your local agent knows your property searching profile and always remember that the key to spotting off market properties is RELATIONSHIPS, RELATIONSHIPS, RELATIONSHIPS! That’s why a real estate network is so important. Get out there and get to know the selling agents in your buying area. Also talk to others in associated sectors including mortgage companies, banks, buyers’ agents, and valuation experts. Once you have identified an area of interest, you should then create new contacts with local agents and make your intentions clear to them. These relationships then need to be maintained. Failure to maintain relationships with various real estate professionals can often lead to a breakdown in communication and hence decrease your opportunities.
So are off market properties good real estate investments? Of course they are! Off market properties can be a very powerful tool for real estate investors who are often looking to snap up a bargain. These types of sales are generally only available for a short period of time and they are often a result of being in the right place at the right time. Go out there and don’t hesitate to look for off market properties, you never know what type of great deal you might find. And don’t forget to check out Mashvisor for the latest tips and secrets on real estate investing.