5 Ways to Skip the Bidding War & Get into Your Dream Home
If you’re currently on the hunt for a new home, you might have come across the term “off-market properties.” If that left you scratching your head, here’s what these homes are…and how to find them.
What Are Off-Market Properties?
Off-market listings are homes or properties that are available for sale, but you won’t find them on any multiple listing service (MLS). That means they will not pop up on Zillow, Redfin, Trulia, or any other publicly available real estate site that populates its information from the MLS.
Synonymous terms include
- unlisted properties,
- exclusive listings,
- or pocket listings.
Off-market properties have grown in popularity over the last few years, creating a kind of secondary market.
Why Seek Out Off-Market Properties?
Buyers love off-market properties for three main reasons:
- Access to Additional Inventory
Inventory right now in the Washington, DC; Northern Virginia; and Maryland regions is low. (According to this data, active inventory in DC is down 3 percent versus this time last year.)With inventory being tight, some home seekers are getting discouraged with what’s available on Zillow, Trulia, and other public listing sites. Off-market properties are a new pool of potential homes to consider.
- Less Competition
As a buyer, you want to minimize competition as much as possible. Fewer people interested in the same property lessens the chance of an epic bidding war, which could inflate the sale price past your budget.Less competition also means fewer offers on the same property and a greater likelihood yours is accepted.
- More Relaxed Transaction
In a hot market, buyers typically have to make an offer the day a property goes live. Even then, they’re often contending with multiple offers. (Enter bidding wars and less wiggle room for negotiations.)With less competition, the time frame is less intense. You have more time to think about whether the home is really right for you before jumping to make an offer. In really desirable markets, you still have to move quickly, even with off-market homes, but you don’t generally have to start immediately drawing up paperwork after just a ten-minute walkthrough of the property.
5 Ways to Find Off-Market Properties
The benefits of off-market listings are clear, but many potential buyers are left wondering how to find these properties. If they’re not publicly available, how does someone in the public find them?
Here are five potential ways:
- Real Estate Agents
Realtors often have lists of buyers and sellers. The longer they’ve been active in the local market, the more extensive those lists are. One of the best (and easiest) ways to gain access to off-market properties is simply by approaching a Realtor or agency. Just make sure to approach a team with experience, local knowledge, and a big emphasis on customer service. Even with off-market listings, you still have to love working with your Realtor!Click here to gain access to our list of exclusive off-market properties*. We’ve built these connections after more than thirty-five years in the DC, Virginia, and Maryland markets!
*Gaining access to our list of off-market properties is the first step. To ensure you’re getting the most relevant data, make sure to set up a quick phone call with us. We can discuss what you’re looking for (how many bedrooms, location, budget, and more) and get you a customized report based on your particular needs.
- Direct Mail
For the truly motivated buyer, you can send mail directly to homeowners whose properties you’re interested in. The owner of a home is a matter of public record, so it’ll be easy enough to find the contact information. The more difficult task will be convincing the homeowner to sell (and to sell to you).If you’re handy or have the funds to make improvements, consider distressed properties. These potential sellers might be overwhelmed by the necessary upkeep and would be grateful for the opportunity to sell.
This is a pretty unconventional way to uncover an off-market deal, but if you’re successful, you could be the only person involved in that purchase. No bidding wars. No escalation clauses. No bending to the seller’s every whim.
- Contractors
Lots of people fix up their homes before selling, and that means contractors often have the inside scoop on who intends to list soon. They’re aware of this long before a home goes live, and if you happen to have a good working relationship with these contractors, you can potentially get in touch with soon-to-be sellers before they officially list. - Real Estate Auctions
Properties available at auction are often off-market deals, and they can be purchased for pennies on the dollar. That being said, an auction property usually comes with a lot of strings. There might be delinquent taxes to pay. The deal might be cash only. There could be liens or other bureaucratic red tape. The home could require a significant amount of rehab or work. The list goes on. Point being, yes, you can get an amazing deal at an auction, but you should be a savvy real estate buyer or investor already. Auctions are no place for first-time home buyers! - Online Resources
Online classifieds and sites like Craigslist could contain off-market properties. These channels are natural advertising sources for anyone who is doing a for sale by owner (FSBO) listing.
The way you find off-market deals might be different than standard listings, but you still want a Realtor in your corner to walk you through the buying, negotiation, and closing processes. If you’ve found an off-market property you think could be perfect, reach out to us today. Working with us automatically puts $2,000 in your pocket:
- $1,000 credit toward closing costs
- $350 in settlement costs
- $100 credit toward a home inspection
- One-year home warranty worth $550
If you haven’t already, make sure to check out our most recent DC, VA, and MD off-market listings. We can’t wait to help get you in your dream home!
