VICDOC Summer 2023 - Magazine - Page 75
T H E S U M M ER PRO P ERT Y M A RK E T
auctions may wind down over
W hile
the holiday period, unbeknownst to
many, off-market transactions continue to
offer opportunities for those ‘in the know’
— particularly this summer.
An off-market property does not go
to auction and does not rely on an
advertising campaign.
After limited supply throughout much
of 2023, spring market activity has been
running late into the year, with the auction
period likely to extend well into the window
before the festive season.
But there is still likely to be a significant
overflow of properties that do not make
it to auction before Christmas and are
instead sold off-market this holiday period.
Off-market transactions offer fantastic
opportunities for buyers and sellers
alike but given the opaque nature, it
pays to enter the arena armed with
strong knowledge.
From a buyer’s perspective, it is
important to identify, then develop close
contacts with agents and property advisors
that deal in the target area and property
type. Particular agents will have sizable
market share and provide both quality
and volume.
Buyers need to give agents a defined
idea of the property type they are after
and a ballpark idea on budget — obviously
without giving anything away that could
negatively impact future negotiations.
Once in the loop, buyers will be
presented with prospects as they arise.
Speed and agility are critical to ensure
opportunities are capitalised on.
Being informed, agile, with the financial
and legal particulars in order, will enable
decisive decision making, especially when
a vendor is looking for a quick sale.
As the off-market process can be less
transparent, buyers must be prepared to
scrutinise the agent to ensure they outline
exactly how the process will play out.
A vital question to ask is: does an agent
have the authority to sell the property?
Do not get caught up in time-consuming
negotiations, only to find out the owner
was never fully committed to selling.
Another issue buyers must consider is
whether there are enough comparable
properties on sale at the time to bear
out true market value. Buyers risk paying
more than in a busier period. However,
sufficient due diligence surrounding prior
comparable sales and market movements
should provide a strong indication of where
true value lies.
From a vendor’s perspective, choosing
the right agent is key. There are those that
specialise in off-market sales for particular
areas and property types.
These agents have nuanced buyer
networks and industry knowledge, to
ensure a property receives strong
exposure and interest, to optimise
sales opportunities.
While vendors will not have access to
the same market size selling off-market,
this targeted approach provides buyers
with a feeling of exclusivity, which can
achieve fantastic prices.
Identifying the right agent is not always
clear, as many overhype their contacts
and expertise in this area. Word of mouth,
or advice from property professionals will
help secure a quality agent.
Whether you are buying or selling, it
makes sense to stay connected to the
market this holiday period — even if that is
in between summer beach trips and BBQs.
