The US housing properties market saw a surge during the pandemic after the US Federal Reserve lowered interest rates. Even as the surge lasted until the new year, it dissipated after home prices increased due to the low housing supply.
But some people are still in the market for new homes, which are in short supply these days. Due to this, new homebuyers should not depend on multiple listing services (MLS) when they look for homes to buy. They should also consider looking for off-market properties offered by property owners who want to sell their properties.
Off-market Properties
An off-market property is a property that is not listed on any MLS in the market. Some sellers prefer to avoid listing their properties to maintain their privacy and save on commission expenses. These types of properties also carry a higher price due to the exclusivity that comes with them.
Even though the MLS Statement 8.0 Clear Cooperation Policy requires brokers to submit the listing of properties within one business day of offering the property in the market, there are some exceptions to the rule. With this, sellers still have the option of keeping their properties off-market to get better deals from buyers.
Using apps to look for houses has made it easier to find off-market properties. These apps allow buyers to receive exclusive invitations from sellers to view their properties. They facilitate the promotion and sale even if they have not reached the market.
Benefits of Buying Off-market Properties
Off-market properties offer several benefits for buyers who are still looking for properties to acquire. Here are some of the benefits.
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Lower Prices
People who buy off-market properties can avoid price increases caused by the competition in the market. The rise in home prices in the market was the result of a low housing supply. Buyers had to compete with each other for a limited number of houses in the market. Due to this, the price of homes increased.
But off-market properties do not compete with these houses since they are not available in the open market. These properties do not get the same pressure that open-market homes receive when they enter the market. So buyers will be assured of a lower price compared to other houses available in the market.
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More Time to Decide
Since not a lot of people can access off-market properties, buyers have more time to decide if they will buy them or not. More often, only one person bids on the property. But if more are people looking at the property, it’s limited to two to three persons since sellers want to avoid dealing with many people when they sell their properties.
Aside from a better price, buyers also do not have to worry about arranging viewings of the property since only a few people are checking it out. This allows buyers more time to negotiate and get the best price for the property.
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Less Competition
Since only a few people are looking at off-market properties, buyers will not have to deal with a lot of competition. It reduces the anxiety that many buyers feel when they have to compete with other people to buy a house.
With lesser competition, buyers have more time to negotiate with the seller. Thus, off-market properties allow buyers to discuss the price with the seller instead of going to a bidding war with other buyers.
Additionally, buyers will be in an advantageous position if the off-market property owner wants to sell the property quickly. In this situation, the property owner tends to agree to the terms of the buyer, which is advantageous to the buyer.
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More Privacy During the Transaction
Since the property is not available in the open market, it allows buyers to stay out of the limelight and have more control over the transaction. This situation is particularly advantageous to buyers who do not want to reveal their financial situation. If the property is not on the market, people will not know how much the buyer spent to acquire the house.
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Faster Transaction
Off-market properties tend to have one or two buyers interested in the property. And when sellers work with a single buyer, the transaction is faster. The seller will not have to host an open house, and the buyer will not have to bid for the home. The negotiations will be faster since both the seller and buyer already know what they want. In the end, the deal is completed faster once the seller and buyer meet halfway and agree to the terms of the sale.
The availability of off-market properties allowed both the buyer and seller to work with each other without having to deal with the anxiety associated with buying a house during the pandemic.