Off-market properties are often seen as the holy grail by property investors. In this video, I discuss a few important things to consider if you’re seeking out, or being offered, off-market properties.
VIDEO TRANSCRIPT
Today I just want to talk about a topic that gets quite a lot of attention in Australia with property investors and that’s the idea of off market properties. So just to give it a bit of a definition, for this video when I talk about off market properties, I mean a property that is obviously available for sale but it’s not being actively marketed on the main portals like Domain and Realestate.com.au etc. All right, so people get very excited about off market properties and I understand why, it’s kind of this whole idea that, you know, you’ve been presented with an opportunity that perhaps other people aren’t presented with and in a way you kind of feel like you’re part of a special club, a VIP membership or, you know, whatever it might be, so I guess against that backdrop, I just wanted to shoot this video to give you an idea about how I approach off market properties. So I get presented off market properties every week and sometimes it’s awesome, right, some of the opportunities that come my way and I’m sure it’s the same with other buyers’ agents, are quite attractive. But if you get presented an off-market property whether directly from a selling agent or potentially through a buyer’s agent or whatever, I think it’s really important that you approach an off-market property as if it was any other property, right. So when I’m doing due diligence and I have a laundry list of things I’m looking for, an off-market property doesn’t change any of that, right. All that’s changing is the way it’s marketed, it might give me a little bit more time perhaps or maybe even conversely a little bit less time to do due diligence. But it’s important that every step that I would normally do I still need to do that. So if you approach off markets and just look at them as any other sort of property but it’s been marketed to you in a different way, I think you’ll be fine. So a little bit about why you might get offered off market properties, I mean, in some cases, you know, sometimes vendors really don’t want to go to market, there could be, they might be looking for a fast sale or a quiet sale. A lot of the time unfortunately it’s to do with something like divorce or something that’s sort of potentially forcing the hand of the vendor and the selling agent. So there can be legitimate reasons why you might be presented with an off-market property. But equally on the flip side, you know, occasionally it’s because a selling agent and, you know, by extension the vendor are looking to just sort of test the market, so they might have a price in their head and if they can get that price or close to it without going through the sort of, you know, trials, tribulations of a full marketing campaign and the cost that come along with that, well, you know, they might just take that. So if you’ve done your homework and that price stacks up and, you know, by all means go for it but try not to be that person where they just sort of present a property and just sort of hope for a good result and you come along and you think, it’s an off-market property, fantastic, we’ll just sort of buy it. You still going to make sure you do all your same due diligence, nothing changes in that regard. So, yeah, I hope that helps.
