Selling offmarket properties

Selling offmarket properties

Real Estate Agent · Member since 2021 · 14 posts · 3 votes

I'm a realtor in the Bay Area market in California which is currently really crazy and properties get bid up with multiple offers. I do alot of outreach to potential sellers because I'm working with a few investors who want to make cash offers off market. These are mostly builders so they can actually offer market value and pay all cash with no contingencies. I've been getting alot of people who really like the idea of selling off market, only paying a 2.5% commission (because I already have the buyer) and the overall ease of an as-is sale with no contingencies. However when we get to price they just aren't that motivated to sell even if the offer is at market value (usually around what it says on zillow and redfin). I'm a fairly new agent and I have a background finding deals for flippers so my mindset it more focused on selling off market. I'm wondering if there are any channels that I could go to to market a property to potential end buyers even if I don't have the listing yet. Its really hard in this market to get someone to agree to list with me but when they know I already have a buyer and they like the offer its a totally different story. Do you think its worth it to market a property that you don't even have anything in writing for? And if so how would you best go about doing this? Again this is for properties who's owners I've spoken to and that I know would sell for a specific price, but who won't agree to sign a listing and just want to sell off market.

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  • Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    5y

    Ask your broker, but my thought is, if you are licensed you can't market properties that you don't have a listing agreement for....unless you have written authorization of the agent/broker that does have the listing....the easiest opportunity is probably within your own brokerage.

    My question to you would be, if your buyers are willing to pay market price...then why don't they buy on market properties?  Same price right--on or off market?   That would seem to be a better strategy for you.  Easier to lock down with sellers that you know want to sell.

  • Nathan GesnerBusiness Member
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    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    I suspect the sellers are probably aware of people getting multiple offers and over asking price.

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  • Real Estate Agent · Member since 2021 · 14 posts · 3 votes
    5y

    @Bruce Lynn In this area properties are getting 10-20 offers and selling for well over the listing price. So I guess the "market value" is changing every day. My builder client usually doesn't want to go through the trouble of submitting an offer just for it be beat out by 10 other people many of which probably aren't even serious or who are going to drag the process out with contingencies.

  • Real Estate Agent · Member since 2021 · 14 posts · 3 votes
    5y

    @Nathan G. Yep they definitely are. The only thing is that they either don't want to have a bunch of people coming to their house for showings or there's some other reason they don't want to list. These sellers are also really enticed by the 2.5% commission, terms etc. It works sometimes I've closed one deal so far in the past 2 months with this builder but more often then not the seller balks at the price. Another thing is that even the houses selling on market with 20 bids are being bought by all cash non contingent buyers...

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