LOVELAND – If you speak to a lot of people about the prospect of selling your home, you’re likely to get at least one suggestion to sell off-market. This means finding a buyer through other channels rather than listing your home for sale on the open market. It may sound appealing to avoid the typical selling process and keep your home sale low-key, but there are some important downsides to be aware of. Here are a few reasons why selling your home off-market is not beneficial.
Limited market exposure
If you’re only secretly selling your house, fewer potential buyers will be aware of it. Thus, it will likely take much longer to sell. This is not ideal if you’re anxious to sell and move on to another property. Also, your smaller buyer pool will result in fewer qualified buyers.
Lower selling price
In an open market, supply and demand affect price. With low supply and high demand, it’s an optimal market for sellers to get the maximum price for their homes. However, in order to do that, you need full market exposure to all potential buyers.
When selling off-market, you likely deal with just one or two buyers. A buyer might offer you list price, if not below it. It may sound like a reasonable offer, but you’ll never know if you could have gotten more! Compare this to full market exposure where buyers are competing for your home. Buyers offer more when they know there’s stiff competition, so the selling price would be higher in this case.
Lack of representation
Another downside of off-market home listings is the lack of representation. There’s something to be said about home buyers and home sellers having equal representation from agents who know the laws, are experienced in real estate transactions, and work to protect their clients’ best interests. Selling without representation could lead to costly mistakes.
Off-market listings tend to be more beneficial to buyers than they are to sellers. For buyers, it gives them an opportunity to bid on a home with little competition, therefore paying less than they otherwise might for that same property. For sellers, although selling off-market may provide some privacy, the lack of full exposure often leads to longer timeframes and a lower selling price. With the real estate market so hot right now, why not get full market exposure and the best price possible for your home?