Pros & Cons of Selling a Home Off-Market in Santa Barbara
Wondering if it’s time to sell your home off-market? It’s a good question to ask. Last year, 88% of buyers purchased their home through a real estate agent or broker. But where did they find the home they purchased? According to the National Association of Realtors, buyers found these homes:
-On the internet: 51%
-Through a real estate agent: 34%
-With a yard sign/open house sign: 8%
-Through a friend, relative or neighbor: 4%
-Through a home builder or their agent: 2%
-Directly from sellers/Knew the sellers: 1%
-By print newspaper advertisement: 1%
Even when selling your home off-market, an agent or broker can be a huge asset. In fact, most investment properties are sold off-market, because by the time they hit the MLS, they are priced too high for an investor to achieve a high enough margin.
Selling “off-market” means staying off the multiple listing service altogether. It’s easy to understand why buyers can find a slew of good reasons to purchase a home off-market, but this article specifically addresses the questions of sellers. In particular, you’ll understand why we believe it’s important to find representation. You’ll find a list of pros and cons to help you make your decision, and if that’s not enough, contact us for a free consultation.
Pros of selling a home off-market
Reduced Costs in Off-Market Transactions
Let’s face it….. getting a house ready to sell by an agent’s standard can be very expensive and time-consuming. In order to get the home ready to sell, there are painting, carpet cleaning, landscaping, pest extermination, and many other costs to consider. Selling off-market ensures that you find yourself either eliminating or significantly reducing preparation costs. You’ll also find that you may reduce the commission paid to an agent. After all, if the property is exchanged between two parties who know each other, a deal can be far less risky and much less expensive up front. On the other hand, because a real estate deal can be complicated, it is usually best to hire an agent or at least an attorney who specializes in real estate. Why do some sellers find that working with a realtor is best? Because it is their job to ensure the transaction goes as smoothly as possible. Your off-market transaction can vary from others greatly, and no one knows the thousands of tiny details involved in a real estate deal better than an agent. Your up front costs may not be as greatly reduced, but your end result will be absolute peace of mind and a smooth transaction, and usually a quick sale. In addition, agents network for a living with the people looking for the property you are selling.
Privacy and control for the Seller
One aspect that is truly attractive to many people considering selling their home off-market is the fact that their privacy is respected. The sale essentially becomes no one’s business but their own and that of those whom they chose to do business with. Finding a discreet, well-connected agent to represent you can ensure this process goes even more smoothly. This private aspect of selling your home off-market can be exciting to sellers who want to keep quiet that they are selling in the first place, or those who simply don’t want to deal with having to keep the property perfectly tidy for a family coming through. No one wants to be told to vacate the place they reside for a day or a few hours while strangers walk through the property, and since investors will often buy “sight unseen” if the numbers add up, a realtor well-connected with investors can help ensure your privacy throughout the deal.
Lastly, convenience is an important pro of selling your home off-market. There is no professionally-driven pressure to accomplish anything that isn’t in the buyer’s or seller’s agenda. Time belongs to the individuals involved in the transaction, and the sale is organized on their own timeline give or take a few key components like repairs or concerns revolving around timing and paperwork.
Cons of selling a home off-market
Difficulty Selling Your Home Off-Market
Should you not have a wealth of investor phone numbers stored in your contacts, you may find that you don’t have a big enough network to sell your house immediately. It may take time and effort on your part to sell your home off market. This is where an agent can be an enormous asset. You may know a number of interested buyers but simply not have the time to connect with them the way you need. An agent does.
If you are selling your home off-market, you will need to make repairs, fix the landscaping, and be prepared to show the home to interested buyers on your own. This can take time, money, and a lot of energy.
Selling your home off-market eliminates many buyers, it’s true. But one thing to note is that most people who buy off-market homes are investors. Investors pay cash and move through deals quickly, which can actually become a pro for the seller. The majority of investment deals are done off-market by people who know each other and know how to find what they are looking for.
Deciding to sell your home off-market
So should you sell your home off-market? The decision can be a difficult and personal one to make. Carefully consider the advantages and disadvantages and you will be well on your way to making the choice that’s right for YOU! If you need additional help looking at your options, or are interested in selling your home off-market with agent representation, a free consultation may be just the thing. Contact us today.