M
arket Insights

    The off-market sale: a strategy that often backfires.

    When I mentioned to my colleague that my clients' home would be listed on the market next year, they asked if an off-market sale was possible. While it might seem appealing, I'm generally skeptical about this approach.

    The problem is that when buyers view a property in its "before" state, they often can't envision the potential of the house. They're distracted by outdated decor and worn-out features, which makes them less likely to make an offer or return for a second viewing. If they do make an offer, it's usually at a low price.

    We recently represented a classic Piedmont home where the sellers preferred an off-market sale. Despite assurances from our colleagues that buyers had great vision, both parties offered $500,000 less than the sellers were willing to accept in an off-market transaction. After transforming the property with new hardwood floors, paint, lighting, landscaping, and staging, we were able to sell it for $600,000 more than the earlier offers.

    This experience highlights the importance of showcasing a home in its best light. Homes are emotional purchases, not practical ones, and taking the time to create a compelling narrative can pay off significantly. By working with agents who can curate this journey, sellers can reap huge dividends.

    While off-market sales might seem appealing, they can be inherently tricky. The home hasn't been "market-tested," so sellers won't know if they could have gotten more, and buyers won't know if they could have purchased the house for less. Off-market sales are best suited for those who are comfortable with uncertainty and can avoid peer pressure from friends who think they know better.

    In our experience, sneak peeks tend to backfire more often than not. However, when private sales work, they can be an elegant solution. We're not opposed to off-market sales; we just need all the pieces to fit neatly together for them to succeed.

    If you're considering an off-market sale or want to learn more about our approach, we're here to help. As consultants in all things house and home, we'll educate, explore, examine, and refer to ensure your home is taken care of as if it were our own.