The rise in off-market property sales and rentals and how to secure an off-market deal

• Desire to limit the number of people viewing
• Elderly home owners moving out of a large family home unable to manage with multiple viewings
• High-end property owners wishing to secure a high level of security and confidentiality
• Divorce – meaning both parties want to keep personal information private
• Change in circumstances – also demanding a level of privacy
• Speed of sale – off market sales usually have buyers ‘waiting in the wings’ so the process is quick and smooth
• Houses are selling so quickly meaning there is no time – or need – to list on property websites

What prices are being paid for off market properties and what percentage of sales are off market?

According to recent The Sunday Times article: ‘Why Off-Market Property Sales Soared’, buyers have been paying well over the asking price for off-market deals. This has essentially been due to lack of supply. With so many homes now being sold off-market, properties are often appearing on estate agent’s websites only after they have been sold. Buyers are finding that there is very little supply so they are keen to secure a deal, by paying over the asking price, once they have been given the opportunity to purchase an off-market gem. Indeed, the article states that: ‘Sealing a deal off-market isn’t cheap, with buyers paying premiums of up to 30per cent.’

Recent research has also found that one in ten sales are now taking place off-market with this figure rising to one in four sales in central London. Statistics that can’t be ignored.

How do you access off market properties?

With off-market sales now being an integral part of the UK housing market, it pays to contact and ideally meet, all the local estate agents in person so they are fully aware of your search brief. When an off-market property arises, you will be on their radar for people to contact. Viewing houses on a regular basis with agents is also key to building up a rapport and indicating your commitment to the search and it also helps to narrow down exactly what you are looking for so the agent fully understands your needs.

Other ‘off-market’ properties can be found through connections: this is where friends, colleagues, town and village website forums and family networks can be useful.

Beware of some off market propositions

One word of caution regarding ‘off-market’ properties. Sometimes vendors will test the market and ask for an overpriced figure – just to see if anyone will bite. Vendors will not lose out by asking a high off-market price and if there is little interest and they wish to list on the open market, they will not have lost face by asking for a significantly lower price. Be aware of true market value to ensure you are not carried away with the excitement of finding an off-market property. Do your research to make sure they are asking for the right price.

Off market is here to stay as POA – Price on Application – is deemed illegal

With demand levelling out post pandemic and inflation and living costs rising, there could be a reduction in properties being sold off-market. However, with off-market sales now being so established, we don’t predict a marked shift towards the open market.

In addition, recent legislation by the National Trading Standards Estate and Letting Agency Team has declared that listing properties as ‘price on application’ is illegal. Sellers who are concerned about privacy and do not wish to advertise the price of their house will be forced to sell off-market to retain the desired level of confidentiality meaning that off-market is here to stay.

If you would like help with your move and are interested in off-market properties, then please do get in touch. 

Email: enquiries@chilternrelocation.com 

Call: 01494 672086 

or visit: www.chilternrelocation.com