We often get asked “can you help secure ‘off market’ property” & of course the answer is yes.
As buying agents, securing off market gems is a speciality – getting exclusive access to (often rare, fine or exceptional) properties that are not listed on the portals, or with estate agents & obtaining privileged early access to those that will list.
Such canny activity all gives our clients a competitive edge, in a secretive world.
It’s one of the main motivating reasons people use a property finder, like Flint Homes.
But what if I told you it wasn't always the nirvana it sounds & could actually be a nightmare?
And is it the right strategy in a buyer’s market?
Let me explain.
If a house is on the market & subject to market forces – the market finds its value: get listed too high in this price sensitive market & there will be no interest, next to no viewings & likely, no offers. Then the property will sit, loose its premium first touch listing on Rightmove/other portals, slip off people’s radars, get stale & eventually end up in the sea of reductions the market is currently listed with. Then change agents & repeat…
Enter at this point as a buyer – especially one in cash, or proceedable, with a mortgage decision in principle in place – & you are the proverbial dog with two whatsits. Your buying power is bionic & you hold all the cards.
In short, you should – with a good, firm but fair negotiation – be able to secure the on market property at a good, lower market price.
And we have been lucky enough to do a lot of this for clients over there past two years.
Off market however, it is a very different story.
The vendor has not yet been subjected to the harshness of the current market conditions.
They may well have had various overblown valuations thrown at them to win an instruction. They may well still have a Covid valuation at the 2022/23 market peak prices… aka, cloud cuckoo land, in October 2026.
Enter negotiations at this point & with a vendor in this mindset, off market, & you need an absolutely ruthless, market expert to get you what you want, anywhere near market price.
And, even with the best negotiator possible & an army of facts & psf sale price postcode or Rightmove Pro or Zoopla stats to back you up, you might stand no chance of securing anywhere near market price. If the seller isn’t playing the realism game, which many still are not.
Is this a lost opportunity in such a strong buyer’s market…?
We think so.
Don’t get me wrong, we are securing properties off market. And our clients are happy. Read our latest Google reviews.
And each deal we feel is a fair, market valuation price (remember, it needs to be a two-way process, for it to survive the conveyance process & stick through to a successful exchange).
It can be done… with the right vendor & estate agent working sensibly, collaboratively & rationally.
But it’s not straight forward & in some cases – where seller is delusional, estate agent unwilling/under vendor’s control & buyer is too punchy, then rare & wonderful opportunities can easily be lost, even before the British conveyance system does its worst!
It’s a tough & very tricky market, requiring nuances far beyond statistical analysis – or worse: Ai BS.
A quick dip into the October stats reveals the “buyer’s market” continues strongly here in Norfolk.
Yesterday, a BBC report summarised by Zoopla suggested:
• 25% of homes that went up For Sale on Zoopla have previously been on the market in the last year.
• 60% of these homes have returned to market with a lower asking price.
• There are 5% more homes for sale vs this time last year.
And a recent Move iQ sales report shows a strong UK buyer’s market driven by high inventory – which reached a 12-year high entering autumn. Branch listings rose to an average of 51 homes (up from under 40 earlier in the year), supported by 30 market appraisals & 9.5 agreed sales per branch.
Despite typical seasonal lulls bringing buyer registrations down to 69 per branch & viewings to 1.7 per property, completion efficiency improved – with 31% of transactions taking over 17 weeks, down sharply from 51% the previous month. Still, way too long… but less of them!
This surge in choice gives buyers significant price leverage.
Most revealingly, an overwhelming 86% of UK properties sold below asking price, with only 9% achieving full price & just 5% selling for more.
And with c50% of all listed homes at risk of standing unsold, realistic pricing remains vital for sellers, while buyers with pre-approved financing or completed sales are well-positioned to negotiate.
As we always say: get your ducks in a row… funds/mortgage, a quality lawyer, RICS surveyor, reliable builder etc.
The Autumn budget (next week, brace yourselves!) continues to strike fear into people – what will this government set it the crosshairs next? When will this digital revolution in estate agency begin? What will it look like & what effects will it have on the market?
Undeniably, the budget/government are stalling the top end of the market here in Norfolk, which affects the whole system, rung by rung down the property ladder.
Hopefully, some (rare in recent times) sense & stability will catalyse a pre-Christmas burst in activity – of educated, realistic vendors coming to market, at sensibly informed prices & motivated, organised buyers offering fair money, for fast transactions, with their ducks in a row.
You can but hope… right?
Need any help navigating this market - on or off? Then you know where we are: DM us…
