Insight

04.04.18  Selling Advice

 

The Trend Towards Off-Market Sales In Sydney’s East

Since January 2017, we’ve achieved over $127 million in off-market sales across Sydney’s east.

Why are more people selling off-market when Sydney’s eastern suburbs have such a high auction clearance rate? Here’s what you need to know about this unique selling strategy.

The off-market sales process

Off-market sales are those that take place with no public advertising campaign at all. Instead, agents with access to a high-quality database of interested buyers connect their sellers with the person who is the right fit, and the sale takes place through a private negotiation.

The benefits of off-market sales include privacy and speed for sellers, but there are other reasons many people are deciding to use this strategy over the traditional auction approach, particularly in Sydney’s eastern suburbs. For some, it’s about finding the right buyer for a unique home at the top end of the market.

An increasing trend for Sydney’s east

Throughout 2017 we tracked an increasing trend toward off-market sales at the top end of eastern suburbs property. In fact, of the total sales we achieved in the first half of the year, 53% took place off-market. This huge proportion of sales happening purely through phone calls, emails and in-person negotiation is a stark reminder that there is more to this complex market than meets the eye and that off-market sales are a factor that both buyers and sellers need to be aware of.

Why the trend towards off-market sales in Sydney’s east?

While an off-market negotiation means buyers don’t have to go through the competition of an auction, it also allows sellers to be selective, negotiating directly with those who can approach their asking price. In the tightly held suburbs across Sydney’s east, sellers know they can afford to wait for the right buyer to come along.

Finding the right match for your home

Relationships and market knowledge are both crucial to the off-market sales process. Many of the properties that sell off-market are unique in some respect—their size, location, design or other features could mean they stand out. At auction, these homes may or may not achieve the highest possible sale price, depending entirely on which buyers the auction campaign has reached.

Finding a buyer who has the right motivation and the budget for a unique, high-end property requires a keen understanding of the target market. To reach the highest possible sale price, the agent needs to understand exactly who would be most interested in your property and have the skills to communicate its best features.

In other words, effective off-market sales are about building and managing a number of key relationships rather than simply reaching the maximum number of potential buyers.

Buyers: Are you missing out?

With such a large proportion of sales now happening off-market in Sydney’s east, home hunters need to include these sales as part of their buying strategy. Joining an off-market sale database is another way to make sure you hear about every single property available in these sought-after suburbs, not just the ones that are listed publicly.

Download our 2018/2019
Eastern Suburbs Market Report

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