What is an off-market property in real estate?
Real estate vocabulary can sometimes seem abstract for those who are not experts. This is why today we invite you to discover more about off-market properties. What is it about? This is what we invite you to discover. We also remind you of the advantages of using an apartment hunter. Advantages including access to these famous off-market properties...
Off-market goods: definitions and advantages
What is an off-market property? What are the advantages of this market for buyers and sellers alike? This is what we invite you to discover.
Off-market real estate: what is it?
If you have already read several of our articles, the term “off-market goods” surely means something to you. For example, we mentioned to you, among the advantages of using an apartment hunter, the fact of having access to off-market properties. But what exactly is it about?
In English, the term “off-market” literally means “off market.” It is therefore an apartment or even a house put up for sale, but which is not visible on the web or in magazines dedicated to real estate.
This discretion is very much appreciated in the luxury real estate sector, especially for private mansion sales, for example.
Off-market real estate in France
In France, around three quarters of transactions of 10-100 million euros would be carried out by the 10 major marketers on the market (the marketer is the one who puts on the market, who markets). If we add notaries and other banks, we would even reach 85%.
At the same time, around 15% of transactions would be processed off-market. But what are the advantages of this process?
Advantages of off-market for sellers
The first advantage of off-market real estate is discretion. Indeed, not all owners necessarily want to “shout from the rooftops” that they are selling their house or even their hotel. Likewise, not everyone wants to reveal the selling price of their property or even photographs of it. The choice of off-market is therefore synonymous with confidentiality and discretion.
Another advantage for the seller: by choosing the private market, he can increase the price of his property which, because it is sold confidentially, becomes rare and exclusive.
Finally, a seller can fully test the attractiveness of his property via the off-market before opting for sale on the web and elsewhere.
And for buyers, what are the advantages to note?
Advantages of the off-market for buyers
The seller is not the only one to benefit from the advantages of the off-market in real estate. The buyer also benefits. Thus, he has access to homes and other types of rare and exclusive goods. However, many French and foreign buyers are looking for a property that stands out from the others.
In addition, access to the private market also makes it possible to face less competition. In cities like Paris, for example, supply is lower than demand. When a property with a lot of assets is put on sale, many buyers make an offer. By going through the off-market, the confidentiality of the sale makes it possible to face less competition.
Are off-market sales a confidential market?
Yes, off-market sales are generally considered to be a confidential market. Sellers can sell their properties without publicly disclosing the listing and price, ensuring confidentiality. However, this confidentiality also means that off-market sales can be relatively more difficult for buyers to access, requiring the intervention of a real estate agent or specialized network to access these properties.
What should buyers be aware of when considering off-market sales?
Buyers should be aware of the importance of accurately estimating the value of a property when considering off-market sales. Off-market properties are often sold at higher prices, so it's crucial for buyers to have a good understanding of real estate valuation to ensure they're not overpaying for the property.
What are the benefits for buyers of buying properties off the market?
The advantage for buyers who buy goods that are not listed on the market is that they face less competition. Since unlisted properties are not published, the number of potential buyers is reduced, giving buyers a better chance of acquiring the property without facing multiple auctions or bids.
Why are off-market properties usually sold at higher prices?
Off-market properties are generally sold at higher prices because sellers have the opportunity to slightly overestimate their properties, and buyers are often less likely to bargain in competitive markets. This results in properties being sold at higher prices compared to similar properties on the market.
What is the main advantage for sellers in off-market sales?
The main advantage for sellers in off-market sales is the ability to set a price without considering comparable listings in the same region. This allows them to potentially sell their properties at higher prices.
Does the Off Market differ from region to region?
Absolutely, the Off Market aspect can really fluctuate from one region to another. The influence and the need for the Off-Market offer are greatly influenced by the dynamics specific to the local real estate market. In areas where the demand for properties is particularly high, creating fierce competition, the Off Market can be much more significant than it would be in markets where demand is less strong.
In tight markets, sellers and real estate agents frequently prefer to maintain discretion around the sale, thus bypassing conventional methods of listing. This approach often involves presenting goods exclusively to previously identified buyers, ruling out the use of public ads. These Off Market transactions offer the parties concerned the opportunity to negotiate discreetly and to close the sale more quickly, thus avoiding the deadlines and constraints associated with traditional transactions.
However, in markets where supply exceeds demand, the impact of the off market may be less. Sellers are then more likely to adopt traditional sales methods, such as putting on a public auction or working with real estate agents to attract a greater number of potential buyers. In these contexts, the Off Market may play a less important role, as it may not be as essential to ensure a successful sale.
What is off-market and why is it not always synonymous with good deals?
What is the benefit for buyers of buying non-commercial real estate?
The advantage for buyers of buying real estate off the market is that there is less competition. This means buyers are more likely to secure the property without having to deal with multiple competing offers.
Why are off-market properties usually sold at higher prices?
Off-market real estate is generally sold at higher prices, especially for exceptional properties. Sellers can set prices without considering similar goods listed in the same region, which contributes to price increases.
Why do sellers choose to sell their properties off the market?
Sellers choose off-market sales to potentially overestimate their real estate and attract buyers who are less likely to bargain. In competitive markets, sellers may want to sell quickly without considering comparable listings.
Understand the challenges of off-market in 10 points!
The decisive role of the Parisian real estate hunter in buying a property
Faced with an ever tighter Parisian real estate market, buyers encounter many difficulties when looking for a property. Not only do they struggle to find ads that meet their expectations, but they also sometimes find themselves competing with several candidates for the same offer, which delays the realization of their investment. More than ever, if you want to give yourself every chance to quickly visit an apartment that meets all your criteria, it is in your best interest to ask a real estate hunter who can give you access to off-market properties. Focus on the challenges of this confidential part of the market, whose advantages and specificities we present to you at the same time!
1. Access a wider range of offers
As the name suggests, the term “off-market” means “off-market.” In other words, the properties that fall into this category are for sale, but they are not promoted on conventional networks (agency sites, sales platforms between individuals, real estate portals, etc.).
When you search the web for the perfect apartment, you have the impression that you can easily get an overview of all the available properties, using the search tools at your fingertips. In fact, you can only consult ads voluntarily communicated by sellers or real estate agencies.
But in the field of luxury real estate, in particular, people often prefer to sell in a more confidential way. Also sometimes, off-market properties are those for which we have not yet had time to write and publish the ad. In any case, accessing these sales allows you to significantly broaden your search field.
⭐️⭐️⭐️⭐️⭐️ At HOME SELECT, all our real estate hunters mobilize their network in order to find out which off-market ads may be of interest to you. Using our services helps you to make your choice from a wider selection of properties, narrowed down according to your criteria.
2. Find an exceptional apartment in Paris
Very often, off-market properties are those whose owners do not want to promote too visibly, because they are exceptional accommodations, in buildings of character, with high quality services.
In this sense, these sales are often made away from prying eyes, because we do not want prices to be seen by too many “curious” people. In addition, owners can also consider going through off-market to preserve the privacy of buyers; and avoid publishing photos of the various rooms on the web.
If you want to move into an exceptional loft in Paris in complete confidentiality, you have every interest in using the off-market network, because it is through this that you have the best chance of making your dream come true.
⭐️⭐️⭐️⭐️⭐️ At HOME SELECT, we are used to conducting our research for customers who want to find exceptional accommodations, with particularly demanding specifications. Our network and our off-market expertise allow us to respond to the most specific needs effectively.
3. Buying without facing too tough competition
All buyers looking for an apartment in Paris know it: if they use traditional networks, when formulating their purchase offer, they may be in competition with a certain number of other people.
Finally, in this configuration, it is the seller who is naturally in a position of strength, since he is spoiled for choice. He is free to select the purchase offer that seems the most serious, and to leave yours at the bottom of the pile if he finds better elsewhere.
The advantage of off-market seems obvious here: logically, since the promotion around the property is not done in the same way (or even remains almost absent), you are more likely to succeed in making your purchase, because you will face less competition.
⭐️⭐️⭐️⭐️⭐️ At HOME SELECT, we take care to value the purchase offers of our customers, to give them the maximum chance of succeeding in their project. We do not hesitate to support you in this essential step, so that you can make the right decisions, those that will allow you to make your moving dream come true.
4. Take advantage of the volume represented by off-market sales
Off-market real estate transactions in Paris are not reserved for a few exceptional properties for the most affluent buyers, although they quite often involve luxury apartments and houses or private mansions.
10% of sales in France would be made through this method, for very variable amounts, between 2 and 100 million euros. In Paris, this share of sales outside the market could even exceed the average for French territory, since the tension is more present than ever.
Finally, by depriving yourself of the off-market, you are not only ignoring a few exceptional properties in Paris, but you are closing your door to a significant part of the real estate stock.
⭐️⭐️⭐️⭐️⭐️ At HOME SELECT, we know how difficult it is to find a property that meets all the buyer's criteria in Paris. In order to successfully meet the challenge, we mobilize all our knowledge and our entire network for the benefit of the purchaser, without ever overlooking a single opportunity, whether published or off-market.
5. Move to the most popular boroughs
In some boroughs such as 3E, the offer is becoming extremely rare, with particularly coveted sectors such as that of rue de Bretagne, rue Charlot or even rue de Montmorency. Undoubtedly, if you dream of moving to the Temple district, you need the off-market, because you may quickly find that there are very few offers on traditional networks.
The same is true in areas like that of 8E arrondissement, between the Place de la Concorde and the emblematic Boulevard Haussmann. The prices around Saint-Lazare station and the Golden Triangle, in the traditional real estate market, exceed €10,000 per square meter (and reach peaks in the field of luxury real estate).
The 1Er And the 7E Arrondissement is also among the most saturated territories in Paris, where demand is much greater than supply. Here, more than anywhere, off-market offers are an avenue to explore in order to successfully invest.
⭐️⭐️⭐️⭐️⭐️ At HOME SELECT, we are used to looking for buyers properties in the rarest and most coveted neighborhoods of Paris. The use of off-market allows us to meet their expectations in a much more effective way.
6. Identify the best offers in terms of quality/price ratio
Off-market properties have generally just been put on sale: the owner logically tries to get the best possible price from them. On the buyer's side, it remains dangerous to negotiate at this stage, since the offer is recent and the seller is hoping to make as much money as possible with this transaction.
For a buyer, you should not start an off-market search independently: it is very complicated to find offers without having a network to contact, and it seems difficult to distinguish real bargains from overpriced properties.
Off-market sales often concern exceptional properties with rare and popular services in cities like Paris, such as a terrace with panoramic views, a large area or even an investment in a luxury building. However, it is necessary to master the market well in order to be able to seize offers that are really advantageous, while ruling out those that are less advantageous.
⭐️⭐️⭐️⭐️⭐️ At HOME SELECT, we know the Parisian real estate market perfectly. When we find off-market offers, we have the ability to quickly know if they are interesting or not, and we therefore make the decision to present them — or not — to our customers.
7. Know how to negotiate reasonably
Consistent with logical reasoning, off-market properties are theoretically expected to be sold at higher prices than publicly traded offerings because they take advantage of the exclusive nature of the transaction. For potential buyers, this exclusivity may limit their ability to bargain on price, as owners have solid arguments to justify the value of their offerings. In addition, it is relevant to address the specific issue of increased costs associated with off-market transactions. To clarify this point, we generally note that off-market products tend to have an additional cost of around +5% above their market value. However, it is important to note that for exceptional products, this surcharge can potentially increase up to +15%. By recognizing these ranges, we can gain a comprehensive understanding of the potential additional costs involved in off-market transactions, taking into account both the exclusivity-oriented price dynamics and the specific percentages involved.
In addition, it should be understood that off-market goods have often just been put on sale, which means that the seller has no particular pressure, and that he is generally ready to wait a few more days or weeks in order to receive an offer without any negotiation.
Trying to negotiate can be risky as you may see your purchase offer rejected. However, in some cases and within reason, it is possible to obtain a slight reduction in price even on these exceptional properties, provided that an effective strategy is adopted.
⭐️⭐️⭐️⭐️⭐️ At HOME SELECT, we know perfectly the secrets of the Parisian real estate market, as well as the specificities of the off-market sphere. We can guide each buyer by specifying, from one offer to another, whether or not it may be wise to attempt a negotiation.
8. Visit the rarest properties in the off-market sector
As a buyer, you can successfully find a few off-market opportunities independently, through your knowledge and your ability to solicit word of mouth from around you.
However, you will never access as many offers as a real estate hunter, because you are not immersed in this universe on a daily basis and you do not have the well-nourished portfolio of these research professionals.
If you think you can identify some off-market properties without any help, know that there are probably many others that you cannot visit without using the services of an apartment hunter... Do not embark on a project alone that will be much easier to achieve with good support.
⭐️⭐️⭐️⭐️⭐️ At HOME SELECT, each apartment hunter works daily to nourish their network and maintain relationships. He spends entire days talking with agencies, concierges or notaries who are aware of the most confidential offers on the market. Logically, it allows buyers to benefit from this precise knowledge of offers and it allows them to have a wider visibility on properties for sale in Paris.
9. Move quickly into a home ready to welcome you
Very often, in a city like Paris, where there are a lot of old condominiums and apartments built several decades or hundreds of years ago, work is necessary before moving into the purchased home.
However, you may need to put your bags down quickly in your Parisian home, and above all, look for offers that do not require you to plan a budget and a work schedule before moving.
Again, most often, apartments without work required, already renovated, in which you only have to put your bags down, are among the off-market exceptions. If you want to access this type of offer, it is in your best interest to seek the help of a property hunter.
⭐️⭐️⭐️⭐️⭐️ At HOME SELECT, we meet all the requirements of our customers, even when they have an urgent purchase project and very precise specifications. We are used to narrowing our searches according to the purchasing criteria specific to each individual, always in order to satisfy the most specific requests in an efficient manner.
10. Benefit from support throughout your project
Whether you are looking for an off-market apartment or a sale published on traditional networks, the agencies with which you may have to collaborate will always be on the side of the sellers.
By having an apartment hunter accompany you, you guarantee yourself to carry out this project with a professional specially mandated to work only in your interests, which is always reassuring.
Beyond the ability of your property hunter to identify attractive off-market offers, you will also appreciate being able to benefit from his services to facilitate your administrative procedures, negotiate in the best possible way and even move in peacefully.
Off-Market Properties: Call on a real estate hunter
Do you want to buy real estate for yourself, for a loved one or to rent it out? Did you know that hiring a real estate hunter offers multiple advantages? These include access to off-market goods. Here's what you need to know about it.
Does a real estate hunter always offer off-market options to his customers?
The job of real estate hunter is defined by the search for the perfect property for its clients, taking care to integrate their specific criteria as well as their budgetary constraints. In this approach, the real estate hunter has the ability to expose to his customers properties that are not included in traditional ads, often called off-market properties. However, it should be noted that the real estate hunter is not limited to these types of properties. In reality, it can just as easily offer goods from the open market, also known as an open market, as long as they correspond to the expectations of its customers. The origin of the sale of the property does not matter, because the main thing is that the property optimally meets the expectations and specific needs of its customers.
What are off-market goods?
When we use the term “off-market,” we're referring to anything that's off the market. In real estate, these are therefore properties that are not visible on websites and other magazines dedicated to the sector. According to studies, in France, it represents 5 to 10% of goods put on sale. So it is a fairly small part.
On the side of sellers as well as on the side of buyers, off-market offers various advantages. For the former, as competition is reduced, goods can be sold more quickly, but also at higher prices. It also allows them to sell discreetly without publicly disclosing the listing and the price of the property. They can also test the attractiveness of their house or apartment by going off-market before, if they wish, selling in a traditional way. For buyers, here too, competition is less important since the goods are sold discreetly. It also allows access to atypical goods. For those looking for originality, this can therefore be interesting.
The off-market is rather used for exceptional properties whose value exceeds one million euros. Moreover, as we told you in a previous article, between 75 and 85% of goods worth 10-100 million euros would be sold off the market. However, off-market can also concern “classic” goods sold at lower prices.
But the “problem” with the off-market is that it is a fairly confidential market. That's where the real estate hunter comes in. Thanks to its network, it can in fact have access to goods that are not (yet) on the market.
What is the additional cost of the Off Market?
The additional cost of the Off Market generally varies from +5% to +15% compared to the market value of the products concerned. However, for exceptional products, this additional cost can reach up to +15%.
Off-market properties: why use a real estate hunter?
Since off-market properties represent only a small part of the houses and other apartments offered for sale, it is quite difficult to hear about them and to have access to them when you are not a professional in the real estate sector. The apartment hunter has a developed network of notaries, real estate agents, couriers and other experts. This allows him to have exclusive access to off-market properties that you would not have known about by doing your research yourself.
In addition, the real estate hunter devotes himself to a few files at the same time, which allows him to be present and responsive, a last essential point with off-market properties. Remember, competition is low on the side of sellers as well as on the side of buyers, but that does not mean that it is non-existent. In this confidential market, responsiveness is therefore essential.
HOME SELECT, your partner for your real estate search
Are you looking for a property in Île-de-France or more precisely in Paris? Do you live far away, you do not have much time, you are afraid of traps and scams, you do not know how to proceed and where to start? Whatever your case, you can choose to entrust your real estate search to an expert.
⭐️⭐️⭐️⭐️⭐️ At HOME SELECT, we are a solid, involved, professional and responsive team and we adapt easily to all the requests of our customers. Whether you are looking for a family apartment, an unusual studio or even a house in the suburbs for your whole small family, contact us and we will take care of the rest.
We are at your side to support you, help you and advise you.
We are there to answer all your questions and assist you in the negotiation whenever it seems possible. Our aim is to provide you with a thorough understanding of the off-market real estate market and to protect you against possible pitfalls, such as underestimating renovation costs. We offer a range of services and customizable options to better meet your needs and preferences.
When it comes to negotiating prices for off-market properties, it is crucial to take into consideration the particular dynamics of this market. Off-Market sellers often seek to maximize their profits, especially if they own an exceptional or rare property. It is therefore common for sellers to initially set a price higher than the market value at the beginning of marketing.
It is important to note that negotiating the price of an off-market property can be difficult. The probability of successfully negotiating the price is generally very low or non-existent. Therefore, it is essential to be prepared for the possibility of paying above the market price if you want to acquire an off-market property. If you are not ready to make that effort, it may not be beneficial to search for goods through this particular channel.
Rest assured that our team is committed to supporting you throughout the process. We are here to help you navigate the intricacies of the off-market market, provide you with insight into potential trading opportunities, and ensure that you make informed decisions. With our comprehensive services and personalized approach, we strive to meet your specific requirements and facilitate a successful real estate transaction.
Off-market real estate: let's recap!
Off-market real estate can concern all types of property, but we find the process more in the luxury branch of the sector. However, there is a democratization of the method, which can thus be chosen for properties in very good condition or for those offering highly sought-after services (such as a beautiful view of Paris, for example).
The motivations that can push sellers to opt for an off-market sale are different: the search for confidentiality and anonymity, the desire to address only potential buyers and not to a large audience, the desire not to make the price public... The advantages are diverse: sales times are generally shorter: sales times are generally shorter, fewer negotiations than with traditional sales methods...
To sell an off-market property, it is better to opt for a specialized intermediary. On the buyer side, you have to rely on word-of-mouth (the neighbor who has learned that a property is for sale, for example) or call on a professional such as a real estate hunter. Thanks to its developed professional network, the latter in fact has access to properties that are not advertised online and elsewhere. He can then offer exclusive properties to his customers.
More and more real estate agents offer off-market services to their selling customers, especially when, in the sector concerned, the supply is lower than the demand and the property has various assets that will allow it to be sold quickly.
If you have decided to start buying an apartment or others, do not hesitate to call on a real estate hunter in order to have access to off-market properties.
⭐️⭐️⭐️⭐️⭐️ At HOME SELECT, 96% of our customers are already won over by our services, what are you waiting for to benefit from them? Do not hesitate to contact us for more information.
