Off-Market Deals Won't Be Great Bargains In the Coming Months

Usually, investors want to find off-market deals.

Sometimes you get real bargains this way.

Or at least you avoid over-paying in a bidding war with dozens of other investors.

So your effort is more likely to be rewarded with a closed deal.

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But, in the wake of coronavirus, the world has flipped.

You're more likely to get a deal on a marketed deal.

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Recently Globe Street and others carried an article by Offerd about why deals are moving off-market.

It usually takes a year or so to prepare a deal to sell.

So deals coming to market now have been in the works since before Coronavirus.

And, because of Coronavirus, those sellers are concerned that marketing their deals widely (as planned) will send the wrong message:

That they are selling because of distress.

Which would lead to low-ball bids.

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So, sellers hoping to get high prices are switching to off-market channels to sell their properties.

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And, for people are not paying attention to how the market has changed, this is dangerous.

Because they believe that off-market deals are the better bargains.

But not right now.

Because the off-market deals are the owners trying to avoid the Coronavirus stigma, and get top-dollar for their properties.

Even though the market has changed dramatically.

So beware the off-market deal for the next few months. Treat them cautiously, as you would a guy with a dry, hacking cough and no mask.