Buying a property before it goes to market, known in the industry as a silent sale or off – market property, is a great way to maximise your opportunities, and should be a part of any property buying strategy.
For first home buyers and investors looking to purchase property at the lower end of the market, bidding on properties before they go to market makes sense. This is a good way to beat strong competition that these properties tend to attract.
Median priced properties close to CBDs, transport and leisure facilities will always sell and rent well.
Consequently, these types of properties are subject to strong competition once they are listed, and often sell at auction for 5 to 10 per cent higher than their true market value. So if your goal is to buy at or below market value, you need to look at properties before they're listed.
Placing a property on the market brings with it marketing and advertising fees, so many vendors ask agents to show the property to their database before they embark on a formal sales campaign.
Other sellers find auctions risky and are nervous about whether buyers will attend or bid and may take a guaranteed offer beforehand rather than running the risk of an unfavorable sale at auction.
Often, professional investors and buyer agents handpick these listings before they go to market and the public gets what's left. If you want to get ahead of the competition you need to become savvy and learn the techniques of industry professionals.
To maximise your opportunities in the market, here are five tips for purchasing a silent sale property.
1. Become better friends with your local real estate agent. Make sure they know you are pre-approved for finance, are serious about buying and can make a quick decision followed by a signed, unconditional contract.
2. Letterbox drops. These say that you are a serious buyer for the right property and the vendor can save time and money by going direct to you.
3. Get organised. Make sure you are ready when the right deal comes along.
4. Use a PK Buyer's Agent who have good relationships with real estate agents, who prefer to deal with them, as they make quicker buying decisions.
5. Call 99601066 today and speak to a Buyer's Agent