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Off-Market vs On-Market Property

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Transcript

Off market vs. on market property. Which one’s better? It’s a tough question but let’s go through both. With off market property, there’s obviously the element of wow and something exciting, “I’m getting it before anyone else or not many people are able to see it.” But that can come with its advantages and disadvantages. Let’s talk about some disadvantages. If you have someone who has an unrealistic expectation of how much they want to sell it for, they may be talking to the sales agent to say, “Look, I really want you to sell this property at 550,000. I don’t want anything less and I want it done.” But imagine as a real estate agent, you might be obviously trying to make that happen in the online world but you may target your offline world to see if there is someone who can come to these price levels.

If you are someone, as a buyer, you could get caught up in this mix of an unrealistic expectation thinking enough market sale would be better for you when that’s actually not really the case. But it does have its advantages. People may come from a distress sale matter and they may be coming to get this property off the books quietly. Now, with enough market sale, the agents can actually have their relationships or the relationships with yourself and other parties to actually discuss this property even deeper. That could allow you to have some negotiation advantages as well as allow you to have the option to be able to discuss this part further. But that does limit you in ways as well when it comes to the research you do on this property and it also limits you with the information you might be getting compared to your traditional listing. It’s important now to look at online listings and what they can do for you in terms of the pros and cons.

Sure, there are some cons of looking where everyone’s looking, everyone has the same access as me, but if you think of the pros, you have to understand that not everyone is looking where you’re looking, and if you have the right strategy, you may have been looking in the wrong place the whole time but it may have been out there online on another platform or another location. With many access opportunities online, you actually also have much more information online on the property which makes it easy for negotiation, review, getting the timely information, and making that contact. If you think about it, online, offline, is it better to have both? Yes. Having access to both does allow you to have access to more stock. But in terms of is one better than the other, not necessarily because there are those pros and cons we’ve discussed.

When it comes to you for searching for your property, you should really consider the advantages of having access to both on market and off market but also consider the difficulties that come with maintaining relationships for both. You may be able to look online but can you manage relationships across the whole country. That’s it from us at InvestorKit, the experts in rock creation helping you take action.