The Importance of Finding Off-Market Deals
As a real estate agent, where do you usually find properties for sale? We’re willing to guess that you rely on listed properties on typical real estate platforms to find those for sale. But that’s where everyone is looking, and that makes it overcrowded. You’re basically competing with thousands of real estate agents to get these properties off the market. Experts say that there is a better way, and that’s finding off-market deals. But first, what are they?
What Are Off-Market Deals?
These are completely different from traditional real estate listings. They are called off-market deals because they are not listed for sale. Since owners don’t advertise on listing platforms, Facebook, Craigslist, or even newspapers, how do you find them?
TIP #1: Drive Around
One popular method is to drive around and search for houses that fit your criteria. On this drive around a town that you’re interested in, you will definitely come across hoarder homes, those in disrepair and boarded-up houses. These are all great for those looking for fix and flips. You may even come across abandoned properties that will look much better with a little facelift. As soon as you find the perfect one, you can contact the owner of the property by getting some information on them using your local assessor’s office.
TIP #2: Contact Wholesalers
You can also connect with experienced real estate companies who can give you a push in the right direction. In this case, the wholesalers will charge a slightly higher fee compared to the initial price of the property. However, if you would prefer not to try out the first method, this will help you reach your goal faster. They have done the significant tasks of persistent outreach efforts via cold collaring, driving for dollars, mail marketing, and even door knocking. Public records also exist to help you find off-market properties yourself.
Why Is It Important to Find Them?
#1 Unlimited Supply
This is one of the biggest benefits of searching for off-market deals. The one reason why supply is usually unlimited is that everyone is targeting the listed properties. They would rather pay more attention to already listed properties either because they don’t know about off-market deals or because they feel it’s more challenging and would rather not be bothered with it. It’s more difficult with listed platforms to find properties that meet your criteria because it’s only a few hundred listed at a time. When searching for off-market, there are absolutely no limits. You can also use data to your advantage here to find off-market residential or commercial properties that match exactly what you’re looking for.
#2 Little to No Competition
Most markets have low inventory, and every available listing seems to end in a bidding war. You see one property having multiple offers, and of course, the agent with the highest bid wins. This doesn’t leave you with many options. However, you can bypass this stage and opt for off-market deals instead. If there’s one thing you can be sure of, it’s that there won’t be competition on your desired property. It’s simply because the owners are not actively searching for buyers. The properties are for sale, but only those searching for them will actually discover this. So, you have the advantage of being one of the first set of people to make offers on the property. When supply is greater than demand, there is little to no chance that you would meet another investor interested in that same property. Instead, you may end up negotiating with the owners and buying it in record time.
#3 Save Time and Money
Listed properties are usually not advertised at the actual price of the property. Usually, someone has included a commission in the listing, which will make you spend more. This is not the case when you connect directly with property owners. You will be getting the property’s exact value and sometimes cheaper if you’re the only one with a reasonable deal. No doubt about it, connecting directly with property owners saves you both time and money.
Finding off-market deals are the way to go if you want to eliminate middlemen that add so much to the property price. No one said it was going to be easy, but it’s definitely worth it.