What is an off-market home sale?
When talking about real estate, an off-market property sale refers to a house that sells without ever being publicly listed or marketed. These are also known as “pocket listings.” When you sell your house off-market, you choose not to publicly list it through the Multiple Listing Service (MLS) or other online platforms. Instead, you market it to a limited pool of potential buyers. Some methods to sell a house this way are through:
- Agent networks: Some real estate agents have access to a network of buyers looking for pocket listings.
- Private networks: You could negotiate directly with a potential buyer and sell without an agent or listing it.
- FSBO (for sale by owner): Selling your house by yourself is always an option. Keep in mind that when you sell FSBO, you will need to figure out how to market, find a buyer, and close the sale on your own.
- iBuyers: These companies are home buyers that work exclusively online. They allow you to sell off-market with few physical restrictions.
- Off-market home buyers: You could sell directly to an off-market home buyer like HomeVestors®. Companies like us provide convenient offers, allowing you to sell your house off-market without the traditional listing process.
Keep in mind that selling as a pocket listing has its pros and cons. While it offers privacy and flexibility, you may miss out on exposure to a wider pool of buyers. You need to consider both the pros and the cons of selling off-market before making the decision that’s best for your home sale.
Who should sell a house off-market?
Anyone can decide to sell their house as a pocket listing. One thing you may need to consider before deciding if an off-market sale is right for you is the local market conditions. If you are in a buyer’s market, you may have difficulty finding buyers or getting the sale price you want. If you are in a seller’s market, you are in a much better position to find a potential buyer at a price you like.
The advantages of selling your house off-market
If you decide to sell off-market, you can:
- Have privacy and discretion: Pocket listings provide more privacy and confidentiality for sellers. Your home details, sale price, and photos won’t be advertised on the MLS and will only be shared with a limited number of potential buyers.
- Skip repairs and inspections: When you sell a property as a pocket listing, you won’t need to make the same repairs and renovations as you would if you sold it on the MLS. Because you won’t be subject to buyer requirements, you also don’t need to worry about property inspections.
- Avoid dealing with tenants: If your property is currently rented, an off-market sale won’t disrupt your tenants, allowing you to continue receiving rental income.
The disadvantages of an off-market home sale
On the other hand, there are some disadvantages to this kind of home sale, including:
- Limiting the number of interested buyers: While pocket listings offer privacy, they also mean less exposure. Your property won’t be visible to the general public, which could impact the size of your buyer pool.
- Being unaware of market value: Given the limited availability of comparable home sales, accurately assessing the true market value of your house becomes difficult. This situation increases the likelihood of either undervaluing or overvaluing your property.
- Covering marketing and selling costs: While selling off-market could help you save on marketing and selling costs, you may want to invest in targeted marketing efforts to reach the buyers you want.
How to find qualified buyers for off-market home sales
In an off-market home sale, where properties are not listed on the MLS and remain hidden from most buyers, finding qualified buyers requires a strategic approach. Here are some effective methods:
- Agent and personal networks: A well-connected agent with a broad network can link you with trustworthy buyers. They will have a roster of potential buyers who are seeking exclusive real estate purchases. You can also utilize your own personal network if you already have a buyer in mind.
- Online marketplaces: While pocket listings aren’t typically visible on popular real estate websites, there are some specialized platforms that cater specifically to these types of listings.
- Real estate wholesalers: These professionals specialize in connecting sellers with interested buyers. They often work with investors looking for off-market properties.
If this sounds like too much work, you could always sell your house directly to an off-market home buyer like HomeVestors®.
HomeVestors® is America’s #1 trusted home buyer.
You can still sell your property in a private transaction. With HomeVestors, you can have all the benefits of an off-market home sale without any of the drawbacks. When you decide to sell with HomeVestors, you get to:
- Sell your house “as is,” avoiding any repairs and renovations.
- Skip marketing, staging, and showings.
- Avoid paying commissions and typical closing costs†.
We have an easy, 3-step home-buying process where you can sometimes go from a fast offer to closing in as little as 3 weeks. If that sounds too fast, we will collaborate with you to figure out a closing schedule that works for your selling timeline. You can even leave any unwanted items behind, and we will take care of them for you. And with The HomeVestors Advantage, you have 3 days after signing to notify your property buyer in writing if you decide the offer isn’t for you after all. There’s nothing stopping you from getting the home sale you want.
Ready to sell your house off-market? Get a direct home sale with HomeVestors.
This blog is for informational purposes only and should not be considered legal advice.
