Off-market properties—also called unlisted properties or silent sales—are often seen as the hidden gems of the real estate world. They’re rarely advertised, highly sought after, and potentially profitable. But navigating off-market opportunities takes knowledge, preparation, and the right network.
Let’s explore what off-market means in real estate, why sellers choose this route, and how investors can tap into these hidden deals.
What Does “Off-Market” Mean?
An off-market property is one that’s up for sale but hasn’t been publicly advertised. These properties aren’t listed on major real estate websites or promoted through standard marketing channels.
There are two main types of off-market transactions:
- Pre-market opportunities: Buyers are given a chance to inspect and make an offer before the property is officially listed.
- Private off-market sales: Sellers prefer to keep the sale discreet and off the public radar.
Why Do Sellers Choose to Go Off-Market?
Sellers opt for off-market sales for several reasons:
- To avoid marketing costs: Sellers can save between $10,000 to $20,000 by avoiding advertising campaigns. This saving often gets passed on to the buyer.
- Need for a quick sale: Some sellers are in urgent financial situations and want to sell fast.
- Privacy: Divorce, death, or financial stress may lead sellers to prefer a low-profile transaction.
- Fewer open inspections: With fewer people inspecting, only serious buyers are usually involved.
- Avoiding auctions: Sellers, especially those still living in the property, may find auctions invasive and stressful.
- Tenant challenges: If tenants resist inspections or aren’t maintaining the property, it can be easier to sell off-market.
Off-market sales have become increasingly common in cities like Sydney and Melbourne, particularly during uncertain market conditions.
“Get your Access to our Fully Customisable Investment Property Research and Analytics Tool Now!”
When Do Off-Market Deals Occur?
Traditionally, off-market transactions were common in the luxury property segment, where privacy is paramount. However, during periods of market slowdown—such as the COVID-19 pandemic—more sellers have opted to list privately to avoid marketing expenses and to expedite the process.
While the true off-market properties remain more common in high-end sectors, pre-market listings are gaining traction across all segments.
The Agent’s Role in Off-Market Transactions
Here’s how a typical pre-market process unfolds:
- An agent secures a property to sell.
- There’s a 1–2 week window before the property is listed online to finalise floor plans, professional photography, and marketing materials.
- During this time, the agent contacts qualified buyers—starting with their “A-list” and working down the list.
- If no buyer commits, the property then goes public.
Agents often prefer working with buyer’s agents because:
- They’re decisive.
- They have finance pre-approved clients.
- They don’t waste time with emotional buying decisions.
This increases the chance of a swift and successful sale before listing publicly.
Check out “Crunching the Numbers: Positive Cash Flow vs. Negative Gearing“
How to Find Off-Market Investment Properties
There are several practical ways to access off-market deals:
1. Build Relationships with Local Agents
Contact real estate agents in your target suburbs and let them know:
- Your budget
- Preferred property type (house, townhouse, apartment)
- Suburb(s) of interest
- Minimum number of bedrooms
- Key features (e.g. close to transport or schools)
Get added to their off-market email lists. Being upfront and specific helps agents present you with matching opportunities faster.
2. Use Off-Market Property Platforms
Several websites now specialise in listing off-market properties. These include:
- Listing Loop
- Property Whispers
These platforms match buyers with properties based on user-submitted criteria. They’re convenient, time-saving, and remove the need to scan endless listings.
3. Work with a Buyer’s Agent
Buyer’s agents often have inside access to properties that never make it online. Around 50% of the deals they close are off-market.
Why? Sellers often reach out to them directly for a quick, discreet sale. These agents can:
- Tap into their networks
- Knock on doors proactively
- Connect buyers and sellers before listings hit the market
A buyer’s agent typically charges around 2% of the purchase price for this service. While not essential, they’re ideal for time-poor investors or those buying interstate.
4. Do-It-Yourself Outreach
If you’re not using a buyer’s agent, you can still find off-market opportunities. Here’s how:
- Shortlist suburbs you’re interested in
- Send emails to local real estate agents asking if they have off-market listings that match your criteria
- Include your budget, desired property type, land size, renovation potential, etc.
This proactive approach may put you ahead of the pack.
Other Off-Market Discovery Methods
- Word of Mouth: Let friends, family, your mortgage broker, or even your solicitor know you’re looking. Off-market leads often come from unexpected sources.
- Professional Networks: Connect with real estate lawyers, building contractors, and wholesalers—they often hear about sales before they happen.
- Public Records: Look for pre-foreclosure or short sale listings via state or local council websites, or property auctions that didn’t proceed.
“Get your Access to our Fully Customisable Investment Property Research and Analytics Tool Now!”
Off-Market Real Estate: Risks and Considerations
While off-market properties sound appealing, not all are bargains. In fact, many off-market or pre-market deals initially hit the market with inflated asking prices.
This happens when agents “buy” listings—winning a seller’s business with overestimated valuations. Later, they gradually condition the seller to accept realistic market pricing, often once the property is listed publicly.
So don’t assume every off-market deal is a hidden treasure. Always conduct a detailed market analysis and property valuation before making an offer.
Is Off-Market Worth It?
Off-market properties can absolutely present unique investment opportunities—especially for savvy, well-prepared buyers. But like all real estate deals, success depends on:
- Doing your homework
- Knowing how to assess property value accurately
- Building solid relationships with agents and industry professionals
When done right, off-market investing can give you first access to in-demand properties, increase your negotiation power, and potentially help you land a better deal.
This then means that many of the pre-market or off-market opportunities are primarily listed at inflated values first before they are lowered to the market level prices, typically done much later when they are officially online or at live selling.
It seems a bit complicated, ‘right? But this is how the property market works.
Be familiar with the lessons and insights we’ve shared with you as they would be of help in the future.
