With real estate markets set to go on holiday over Christmas, buyers must be extra vigilant when assessing off-market properties, the Real Estate Buyers Agents Association of Australia (REBAA) warns.
REBAA president Melinda Jennison says while off-market properties are generally available all-year round, with listings drying up over the holidays, some buyers might pivot to off-market without fully considering the associated risks or understanding the potential ramifications of such purchases.
“Off-market properties can become an appealing option for buyers who are finding limited choices on major real estate portals,” Ms Jennison says.
“There’s often a perception that ‘off-market’ listings mean access to more exclusive opportunities, which can draw in buyers seeking greater choice in a competitive market.
“Usually, they are pre-market listings that already have a sales agent attached. However, they can be genuinely off-market because the vendor wants a quiet sale for a variety of reasons or has specific terms and conditions they need satisfied.”
Ms Jennison says professional buyers’ agents do regularly have access to off-market properties, regardless of the time of year, via their extensive agent networks.
“In assessing these opportunities, it’s crucial to conduct thorough due diligence to ensure the dwelling aligns perfectly with the client’s brief and, most importantly, is not overpriced,” she says.
Ms Jennison says that many buyers often pay a premium for the opportunity to secure an off-market property without competition, believing this will prevent it from being listed publicly and attracting other buyers.
“It’s driven by the perception that acting quickly will keep the property out of reach for others, leading some buyers to offer more upfront,” she says.
However, Ms Jennison says that it’s ultimately the seller who must be convinced that an off-market offer will yield a better result than listing the property on the open market.
“Sometimes, the urgency and scarcity surrounding off-market opportunities create excitement about buying without competition,” she says.
“This can lead buyers to overlook essential factors, such as the property’s suitability and value, in their eagerness to secure it.”
Ms Jennison says there has been a rise in the number of new-entrant buyers’ agents whose marketing solely focuses on their exclusive access to off-market properties because these types of dwellings are viewed as the ‘holy grail’ of real estate by many buyers.
“The reality is that oftentimes these ‘opportunities’ are overpriced B- or C-grade properties presenting as exceptional finds,” she says.
“In low listing volume markets, such as Perth, Adelaide and Brisbane at present, buyers need to seriously ask themselves why any vendor would sell their property off-market when there is more demand than supply, which will potentially drive up the sale price on the open market when the property is subjected to competition.”
Ms Jennison says with listings set to reduce over the holiday period, buyers should conduct thorough due diligence when considering off-market properties promoted by agents and ensure they are appropriately priced to avoid overpaying.
