Off Market Property in Scotland
As professional property finders, we are often asked how we go about finding properties for our clients, and if we can source private or ‘off market’ opportunities that haven’t yet been advertised on the ‘open’ market on web portals. The answer to this is a resounding yes – we source off market property in Scotland.
Garrington Scotland will search the marketplace for properties that will suit their client’s needs best, both on and off the ‘open’ market, ensuring no opportunity is missed.
What does off market mean?
Off market properties are properties that are for sale but never reach what might be termed the general public domain. They will likely never have been advertised in local estate agents, property websites, classified advertisements, or anywhere else.
Such properties are typically passed over by the vendor into the care of an estate agent, with the strict instruction that buyers are to be located through private networking rather than mass advertising.
How does a seller choose whether to sell off or on the market?
The degree of property available off market tends to be directly connected with the type of property being sold and the market conditions surrounding it, and this will affect the approach the seller takes when selling their property.
For instance in buoyant property markets such as Edinburgh where the market can be competitive, owners can be confident that they have a good chance of selling their properties, particularly centrally located flats and houses.
In a market where demand is greater than the supply, sellers can market the property at a price under the Home Report Value, hold ‘open house’ viewing dates, and usually hope for a competitive closing date, where multiple bids will be received, and a subsequent offer accepted.
In this respect, at face value, there is little reason for them not to want to bring their property to the open market with an estate agent.
However, there are many properties – even with good market conditions – that will never reach the open market.
Why do sellers sell off market?
There are a variety of reasons why a seller might choose to sell off market, here are some of the driving factors:
Selective approach
Vendors who have lived in their homes for many years might be sensitive to having multiple visitors each week for viewings. They may prefer a more selective approach to minimise disruption.
Privacy
In areas like Scotland, which has a large landmass but a small population, sellers may prefer to keep their property off websites to maintain privacy from neighbours and friends. Sellers often choose off market sales to protect their privacy, whether for personal or business reasons.
‘Soft Market’ Approach
Some sellers prefer a ‘soft market’ approach where the agent holds details but does not launch the property on web portals. This is often chosen for properties that are difficult to value, allowing sellers to test the market response to the advertised value before going public.
Testing the Market
Another reason for off market sales is to gauge if the initial marketing price is appropriate without creating a date stamp, as happens when listed on property portals like Rightmove.
Avoiding property ‘staleness’
Particularly in slower marketplaces, vendors may avoid launching their property online to prevent it from ‘going stale’. This helps maintain momentum and avoids giving the impression that something is wrong with the property.
How do we access these off market properties?
The off market property transaction environment is essentially a largely invisible subset of the main property marketplace.
Unless you know how to access the off market property domain, you may simply never know about all the properties that might be an ideal fit against your requirements.
It is therefore in the interest of all discerning buyers to take whatever steps are necessary to engage with this method of property selling.
Due to the fact it is a highly specialised area that often operates largely on the basis of property professionals, their network, and relationships within the industry, that can be difficult to achieve unless you have a property finder acting on your behalf.
How to find off market property in Scotland
If you are ready to buy a property but cannot find your ideal home through popular property portals, it might be that there are properties that are in fact available but they’re not being openly advertised.
Here are some of the ways that buyers are known to uncover off market property in Scotland:
Local estate agencies
Engage with an agent who has local knowledge and expertise. Sellers who prefer off market sales often use agents with a successful track record of similar properties. Identify agents who deal with the type of property you are seeking and contact them.
Word of mouth
Whilst it is a rarity in today’s market, properties can also be found through word of mouth. It might be that an individual mentions their intention to sell to one person, who happens to know of another with that type of property who is looking to sell. It can be a trickier scenario in terms of negotiation because the buyer and seller could be friends of friends, in these scenarios it can be wise to instruct a property professional to oversee the process.
Direct approach to the homeowner
If you have identified your dream property that is not on the market, you can approach the homeowner with an offer. This should be done delicately, as not all homeowners will appreciate or take your offer seriously. This is another scenario in which you might wish to work with a professional property finder as we can approach the homeowner directly and and in an appropriate way.
Off market property
Using our network of valuable contacts to discover properties such as these allows our clients to see the ‘bigger picture’ of property available to buy. We will also take further proactive steps to unearth property privately where we may use our own personal contacts in the area or write to specific owners to assess their desire to sell in the future.
We have had a history of success approaching owners privately since they will not be liable to pay an estate agent’s fee and can avoid openly marketing their properties.
In many respects, finding an off market property is a great option for our clients as it can avoid the competitive open marketplace.
There is sometimes a catch with off market property, particularly in a seller’s market. Often sellers can demand a premium price to sell their property before launching it online, with the idea in mind that they may reach a higher offer should they embark in a competitive bidding scenario.
Included in our property finding service, we will always provide our own independently researched comments on the property’s value, so that we can prevent our clients from overpaying or becoming over-incentivised by the prospect of an off market opportunity.
If you are looking for a property in Scotland and would like to ensure you do not miss an opportunity to secure the perfect property we invite you to contact us with details of your requirements.
