Alexandra Ventress
September 13th 2023
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SHOULD I BUY OR SELL OFF MARKET PROPERTIES IN THE UK?
Selling property off the market is a property trend that has been on the rise over the last couple of years. According to data from Hamptons International, on average 1 in 10 Britons sold their property privately in the last three months of 2022, which is the highest recorded level since 2015.
If you are looking for an investment project, then an off-market property sale may be exactly what you are looking for. Similarly, if you are a landlord looking to cut down on their portfolio, then a private house sale is often the best route for you to go down.
In this blog post, we will be looking at how people buy and sell off-market properties, the advantages and disadvantages they bring, and how you can kickstart your investment journey today.
Off-market is a property term that is used in the event of selling a property without first advertising it on the open market. Whereas most property sales are advertised openly on property portals (like Rightmove and Zoopla ), estate agents and auctions, off-market properties are sold via private sales This method of selling is often favoured for high-value and high-profile sales and is used by landlords to sell their property to a new investor. Off-market property sales are often referred to as the ‘secret property market’. They are useful for those looking for new investment properties or for those who are looking to sell their investment purchases.
WHY DO ESTATE AGENTS SELL OFF-MARKET?
Not every estate agent will sell a property privately however it does occur. This is because more often than not, an estate agent works by selling properties on the property market, not by selling them discreetly. As a result, if you are looking to sell or buy a property off the market, an estate agent may not be your best bet.
If someone takes their property off the market, it means they are no longer advertising it to the wider property market. There are many reasons why someone may consider taking property off the market. Some of the reasons can include:
- Your property has been on the market too long
- You wish to use a different estate agent
- Your circumstances have changed
There are many reasons why someone may want to buy a property instead of going through a traditional open market sale. One of the main advantages is that it means buyers do not have to compete with other potential buyers, as they may not be aware that the property is for sale.
If you decide on a property that you like that is not officially listed, then you will most likely be the first potential buyer to register interest. On top of this, if the seller wants the sale to be completed quickly, you will find the buying process will be much quicker. As there are typically no estate agents involved with a private sale such as this, you may find it is a faster sale.
As you are not likely to have much competition for the sale, there will also be less chance of bidding wars to push the sale price up.
Disadvantages to buying off-market
As with any selling decision, there are disadvantages to purchasing a property privately. For example, a property may be listed privately due to issues with the property, such as problem tenants, noisy neighbours, or building work occurring nearby.
It could be a property that has fallen into disrepair due to the owner falling behind on mortgage payments.
When purchasing a property away from the wider market, it is a good idea to have surveys conducted and photos and videos issued.
Why should I buy an off market home?
As we have already mentioned, there are many reasons why it may be to your advantage to purchase an off-market property, especially as an investment. These sales are usually quicker than sales done on the wider property market, and you are often also one of the first people to register interest in the property. As there are fewer buyers interested in the property, you will be less likely to become involved in bidding wars and the purchase price will often be lower as a result.
When it comes to selling properties off the market, there are plenty of advantages. Below we take a closer look at some of the pros to selling privately:
By selling your house privately, you will be able to cut through a lot of the noise and find the right buyer for your property.
When you sell privately, there is less pressure to accept the first offer you receive. When buyers on the wider market take their time, it can sometimes have a negative effect on the sale as potential buyers begin to wonder what’s wrong with it. As you are selling without the wider property market, you can take your time and make sure you get the offer you want.
By selling privately you gain more privacy. This is because you will be avoiding public listings, property auctions, and viewings.
As you will be avoiding the length of a typical sales campaign, you will usually be able to achieve more immediate results.
By putting your property up for sale privately you are able to save on listing. Any offers you receive can be vetted by you, saving money on estate agents’ fees.
DISADVANTAGES OF SELLING PROPERTY OFF-MARKET?
As with any selling option, selling your property privately does have some disadvantages:
More interested parties will typically mean a higher sale price for your property. As you are selling privately there may be fewer parties interested, meaning less chance of a bidding war.
If you sell your property through an off-market platform, they may charge you a listing fee once you sell. It is always a good idea to check the platform thoroughly before agreeing to any terms so you understand any extra fees you may have to pay.
As you are not advertising your property to the public, it can take a little longer to sell your home. Finding the right buyer for your property can take time, so you may need to prepare to spend some time waiting.
Why do people market properties?
There are plenty of reasons why someone may wish to go off market. Below we take a look at some of the reasons sellers may have for choosing to sell off-market:
- Distrust of estate agents
- Sell faster
- Avoid estate agent fees
- More control
- Guage the market
- Prefer a private sale
HOW TO SELL WITHOUT THE OPEN PROPERTY MARKET
As a seller, you may be wondering how you can sell off-market. As the property cannot be advertised on the open property market, you will have to take a different route than a typical house sale:
Cash buyer: One of the best ways to sell your property without putting it onto the property market is through a cash buyer. They will be able to sell your home in a timescale that suits you and without the hassle that a typical house sale can bring.
Estate agents: If you have a UK property for sale but want to avoid the property market, then an estate agent could be the choice for you. Whilst they would normally advertise your property to the public, it may be worth asking if they could offer your property to selected buyers without taking it to the wider market.
Reach out: Another route you could try is telling family, friends, business contacts or work colleagues that you are looking to sell your property and ask them to tell anyone they know who may be looking to buy. Word of mouth can be a surprising way to sell without the wider market.
As we have already mentioned, off-market properties can be quite hard to find. In part due to their names, they are off-market, and so are not advertised using the normal routes. So if you are looking to purchase off-market, where are you to look?
One route you can explore is to check with your local estate agent. They are not known for selling properties off-market, however, it is always best to check, and they may know of a property, or of a buyer who is looking to sell.
But where else can you turn? Some other avenues you can explore include:
One option you may want to consider when searching for properties that are not on the open market is to approach landlords or investors directly. This is because although they may not be advertising it directly, they may have properties they wish to sell.
A different route you may wish to consider involves telling family, friends, coworkers, or any business contacts you may have that you are looking to purchase off-market. They may know someone who is selling or will be able to spread the word for you.
You could also consider going directly to the property owner of the home you wish to buy. You will be able to access the owner’s name and contact details through the HM Land Registry. Be wary that this route may have a low chance of success.
Whilst off-market properties are not marketed to the public, there is nothing to stop you from advertising your interest. You can do this using social media to advertise your interest, as well as taking out advertising space in newspapers and magazines.
You may also wish to get in touch with some housing developers, as they may have properties available to sell off market.
Another avenue that you can explore when looking to buy off-market is to go through us! We offer exclusive off-market properties below market value. When you purchase through The Property Sourcing Company, we take the stress out of the process by handling it all, from surveys to solicitors fees, we’ve got you covered.
Once you have found a property that you wish to purchase, you will then need to start the buying process. No two off-market sale is the same as the next, however, as a rule of thumb, these are the steps that are typically involved:
Before you make an offer on the property, you should try and get an accurate valuation of the property. This is significantly harder to do when the property is not available on the open market, however, you can always check the selling prices of any similar properties in the area.
As the property you are purchasing is not available on the open market, there will be no listing or sales brochures. This will mean in order for you to reach a decision you will need to ask the seller for any floor plans, photos, measurements or videos they may have.
Viewing a property may not always be an option, so if you are unable to secure a booking, you should be able to acquire pictures and videos of the property instead.
You will next need to figure out how you plan to finance your purchase. Will you be buying in cash, or will you be taking out a mortgage?
Finally, you will need to look at hiring a conveyancing solicitor in order to progress the legal side of your purchase.
Or alternatively, you can bypass the hassle that off-market homes can bring. What if there was a way to have bespoke BMV off-market property deals delivered straight to you?
Here at The Property Sourcing Company, we have the solution for modern-day investing. We take the hassle out of investment purchases, freeing up your time for things that really matter.
Led by a roster of industry experts, we have over 50 years of combined experience in bespoke BMV deals. We tailor our service to fit you, from sourcing the best off-market deals for your specifications to arranging and taking care of surveys and solicitors.
Want to find out more about how we can make property investment work for you? Get in touch today or fill in one of our online forms.
Alexandra Ventress
September 13th 2023
Share this post
Start your property portfolio today!
SHOULD I BUY OR SELL OFF MARKET PROPERTIES IN THE UK?
Selling property off the market is a property trend that has been on the rise over the last couple of years. According to data from Hamptons International, on average 1 in 10 Britons sold their property privately in the last three months of 2022, which is the highest recorded level since 2015.
If you are looking for an investment project, then an off-market property sale may be exactly what you are looking for. Similarly, if you are a landlord looking to cut down on their portfolio, then a private house sale is often the best route for you to go down.
In this blog post, we will be looking at how people buy and sell off-market properties, the advantages and disadvantages they bring, and how you can kickstart your investment journey today.
WHAT IS THE DIFFERENCE BETWEEN ON MARKET AND OFF-MARKET?
Off-market is a property term that is used in the event of selling a property without first advertising it on the open market. Whereas most property sales are advertised openly on property portals (like Rightmove and Zoopla ), estate agents and auctions, off-market properties are sold via private sales This method of selling is often favoured for high-value and high-profile sales and is used by landlords to sell their property to a new investor. Off-market property sales are often referred to as the ‘secret property market’. They are useful for those looking for new investment properties or for those who are looking to sell their investment purchases.
WHY DO ESTATE AGENTS SELL OFF-MARKET?
Not every estate agent will sell a property privately however it does occur. This is because more often than not, an estate agent works by selling properties on the property market, not by selling them discreetly. As a result, if you are looking to sell or buy a property off the market, an estate agent may not be your best bet.
WHAT DOES IT MEAN TO TAKE A PROPERTY OFF THE MARKET?
If someone takes their property off the market, it means they are no longer advertising it to the wider property market. There are many reasons why someone may consider taking property off the market. Some of the reasons can include:
- Your property has been on the market too long
- You wish to use a different estate agent
- Your circumstances have changed
IS IT GOOD TO BUY A HOUSE OFF-MARKET?
There are many reasons why someone may want to buy a property instead of going through a traditional open market sale. One of the main advantages is that it means buyers do not have to compete with other potential buyers, as they may not be aware that the property is for sale.
If you decide on a property that you like that is not officially listed, then you will most likely be the first potential buyer to register interest. On top of this, if the seller wants the sale to be completed quickly, you will find the buying process will be much quicker. As there are typically no estate agents involved with a private sale such as this, you may find it is a faster sale.
As you are not likely to have much competition for the sale, there will also be less chance of bidding wars to push the sale price up.
Disadvantages to buying off-market
As with any selling decision, there are disadvantages to purchasing a property privately. For example, a property may be listed privately due to issues with the property, such as problem tenants, noisy neighbours, or building work occurring nearby.
It could be a property that has fallen into disrepair due to the owner falling behind on mortgage payments.
When purchasing a property away from the wider market, it is a good idea to have surveys conducted and photos and videos issued.
Why should I buy an off market home?
As we have already mentioned, there are many reasons why it may be to your advantage to purchase an off-market property, especially as an investment. These sales are usually quicker than sales done on the wider property market, and you are often also one of the first people to register interest in the property. As there are fewer buyers interested in the property, you will be less likely to become involved in bidding wars and the purchase price will often be lower as a result.
ADVANTAGES OF OFF-MARKET PROPERTIES
When it comes to selling properties off the market, there are plenty of advantages. Below we take a closer look at some of the pros to selling privately:
By selling your house privately, you will be able to cut through a lot of the noise and find the right buyer for your property.
When you sell privately, there is less pressure to accept the first offer you receive. When buyers on the wider market take their time, it can sometimes have a negative effect on the sale as potential buyers begin to wonder what’s wrong with it. As you are selling without the wider property market, you can take your time and make sure you get the offer you want.
By selling privately you gain more privacy. This is because you will be avoiding public listings, property auctions, and viewings.
As you will be avoiding the length of a typical sales campaign, you will usually be able to achieve more immediate results.
By putting your property up for sale privately you are able to save on listing. Any offers you receive can be vetted by you, saving money on estate agents’ fees.
DISADVANTAGES OF SELLING PROPERTY OFF-MARKET?
As with any selling option, selling your property privately does have some disadvantages:
More interested parties will typically mean a higher sale price for your property. As you are selling privately there may be fewer parties interested, meaning less chance of a bidding war.
If you sell your property through an off-market platform, they may charge you a listing fee once you sell. It is always a good idea to check the platform thoroughly before agreeing to any terms so you understand any extra fees you may have to pay.
As you are not advertising your property to the public, it can take a little longer to sell your home. Finding the right buyer for your property can take time, so you may need to prepare to spend some time waiting.
Why do people market propertie?
There are plenty of reasons why someone may wish to go off market. Below we take a look at some of the reasons sellers may have for choosing to sell off-market:
- Distrust of estate agents
- Sell faster
- Avoid estate agent fees
- More control
- Guage the market
- Prefer a private sale
HOW TO SELL WITHOUT THE OPEN PROPERTY MARKET
As a seller, you may be wondering how you can sell off-market. As the property cannot be advertised on the open property market, you will have to take a different route than a typical house sale:
Cash buyer: One of the best ways to sell your property without putting it onto the property market is through a cash buyer. They will be able to sell your home in a timescale that suits you and without the hassle that a typical house sale can bring.
Estate agents: If you have a UK property for sale but want to avoid the property market, then an estate agent could be the choice for you. Whilst they would normally advertise your property to the public, it may be worth asking if they could offer your property to selected buyers without taking it to the wider market.
Reach out: Another route you could try is telling family, friends, business contacts or work colleagues that you are looking to sell your property and ask them to tell anyone they know who may be looking to buy. Word of mouth can be a surprising way to sell without the wider market.
HOW TO FIND OFF-MARKET PROPERTIES IN THE UK
As we have already mentioned, off-market properties can be quite hard to find. In part due to their names, they are off-market, and so are not advertised using the normal routes. So if you are looking to purchase off-market, where are you to look?
One route you can explore is to check with your local estate agent. They are not known for selling properties off-market, however, it is always best to check, and they may know of a property, or of a buyer who is looking to sell.
But where else can you turn? Some other avenues you can explore include:
One option you may want to consider when searching for properties that are not on the open market is to approach landlords or investors directly. This is because although they may not be advertising it directly, they may have properties they wish to sell.
A different route you may wish to consider involves telling family, friends, coworkers, or any business contacts you may have that you are looking to purchase off-market. They may know someone who is selling or will be able to spread the word for you.
You could also consider going directly to the property owner of the home you wish to buy. You will be able to access the owner’s name and contact details through the HM Land Registry. Be wary that this route may have a low chance of success.
Whilst off-market properties are not marketed to the public, there is nothing to stop you from advertising your interest. You can do this using social media to advertise your interest, as well as taking out advertising space in newspapers and magazines.
You may also wish to get in touch with some housing developers, as they may have properties available to sell off market.
Another avenue that you can explore when looking to buy off-market is to go through us! We offer exclusive off-market properties below market value. When you purchase through The Property Sourcing Company, we take the stress out of the process by handling it all, from surveys to solicitors fees, we’ve got you covered.
HOW TO BUY A HOUSE OFF-MARKET UK?
Once you have found a property that you wish to purchase, you will then need to start the buying process. No two off-market sale is the same as the next, however, as a rule of thumb, these are the steps that are typically involved:
Before you make an offer on the property, you should try and get an accurate valuation of the property. This is significantly harder to do when the property is not available on the open market, however, you can always check the selling prices of any similar properties in the area.
As the property you are purchasing is not available on the open market, there will be no listing or sales brochures. This will mean in order for you to reach a decision you will need to ask the seller for any floor plans, photos, measurements or videos they may have.
Viewing a property may not always be an option, so if you are unable to secure a booking, you should be able to acquire pictures and videos of the property instead.
You will next need to figure out how you plan to finance your purchase. Will you be buying in cash, or will you be taking out a mortgage?
Finally, you will need to look at hiring a conveyancing solicitor in order to progress the legal side of your purchase.
Or alternatively, you can bypass the hassle that off-market homes can bring. What if there was a way to have bespoke BMV off-market property deals delivered straight to you?
Here at The Property Sourcing Company, we have the solution for modern-day investing. We take the hassle out of investment purchases, freeing up your time for things that really matter.
Led by a roster of industry experts, we have over 50 years of combined experience in bespoke BMV deals. We tailor our service to fit you, from sourcing the best off-market deals for your specifications to arranging and taking care of surveys and solicitors.
Want to find out more about how we can make property investment work for you? Get in touch today or fill in one of our online forms.
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Completely transparent
Tailored investment opportunities
We’ll handle everything for you
Looking for hassle free property?
We’ve got you! Whatever your motivations as a landlord or property owner are, we can help source and match property with you.
When the foundations of your company are built upon industry knowledge and experience, you can’t help but be a self-confident company.
Here at The Property Sourcing Company, we are led by a roster of industry experts who have over 50 years of combined experience in doing BMV property deals, as well as packaging them up for investors.
Quality sits at the heart of our team, who go the extra mile to tailor our service to you. We pride ourselves in our ability to source you a wide variety of high-yield property investments.
Get in touch and we’ll establish what type of property you’re searching for, before talking you through our current investment opportunities. We’ll also keep you posted as we acquire new deals.
When you buy your investment property through us and we’ll take care of solicitors, surveys – everything – all to ensure you have a stress-free property purchase. It’s just one of the ways we make investment work for you.
Why invest with us?
Simply put, we’ll get you the best possible deal. Our sister company, The Property Buying Company, have been in the property buying industry for years & we have access to all their stock which is at a price point that is ready for investors to buy and make a great return on.
No middlemen, no stress & no hassle. We make investing in property and growing your portfolio as easy as it possibly can be.
