We’re seeing all these homes coming on into the sold section of all these real estate websites and we study the market every single day, and we know what’s on the market. And we’re seeing all these homes being sold as off market sales, so I thought this would be a great topic to talk about especially in the current market that we’re sitting in at the moment.
It’s Chris Gilmour back in the studio for another episode of 3 Suits. And today we’re going to have a little bit of real estate flavour on this podcast because I’m seeing more and more of this every single day, literally. We’re seeing all these homes coming on into the sold section of all these real estate websites and we study the market every single day, and we know what’s on the market. And we’re seeing all these homes being sold as off market sales, so I thought this would be a great topic to talk about especially in the current market that we’re sitting in at the moment.
Well, we’ve moved into a buyer’s market right now. We’re starting to see property prices falling. And really, it puzzles me why agents are still taking properties not to the market and just bringing one buyer through. So I think this is a really misconception and a common thing that agents are pitching to the sellers out there that, you know, “You don’t need to spend any advertising marketing. I’ve got a buyer for your home right now.” And that’s great because at the end of the day our role is to sell a property but we actually have a duty of care under the code of contact within the real estate is that we have to do the best thing by our vendor. And I am completely against off market selling, if you haven’t noticed already, and I’ll give you my reasons. There’s pros and cons, and you’ll get two different agents and they’re going to talk about it’s a great thing, you know, it covers privacy if people don’t really want to go to the market. But I honestly believe that there are more cons than pros to selling off market, and I’ll give you these, what I believe.
The biggest thing that I see with – to get a record price in selling real estate, you have to advertise. You have to market. It’s no different to Coca-Cola, to Apple, to Virgin Airlines, to whatever big company is out there. Let’s talk Pepsi and Coke for imagination. In this scenario, let’s just imagine Coke stopped marketing or stopped marketing 40, 50 years or however long Coke has been out for. You would not know about the product Coke. I don’t simply think you can sell any product in this world in the current, in 2018 right now, with the consumers and the platforms that we’ve got for advertising.
If we don’t see it and we don’t know about it, how the hell can you sell a secret? And really, it gets me frustrated when I see these properties selling, especially when they sell for under value. They think they’re doing their vendor a favour and the owner thinks they’re doing a great thing, “Oh, we sold it to the first person that’s just walked in.” Well, how do you know they were actually your best buy? And that’s the argument that I’m going to always put forward to an agent that does a lot of off market selling. I simply don’t think it is the right thing to be done to any seller out there. So if you are thinking of selling your property and an agent has pitched to you that off market selling that, “I’ve got a buyer for your home right now,” well, that’s fantastic. But I’ve been in this industry too long to see that a record price is not achieved by just having one buyer.
A record price is achieved by really skilled negotiating and skilled marketing of a property to bring more than one buyer through a property to create that energy, that competition, and that buzz around that property to increase its sale price, and you simply can’t do that with one buyer. So for me, off market selling is a big no, no, especially in the market that we’re in. The market is so tough right now. There is a lot of home on the market right now so these sellers have a massive amount of competition between each other. Prices are falling. And if an agent walks into your property and says, “I have a buyer for you right now, today,” I would be questioning, “Are they my best buyer?” And that’s what I’m going to leave you with.
Is that one buyer your best buyer? Is there a better buyer that lives in Sydney, Melbourne, overseas, next door even? How would they know? There’s no sign board out. There’s no advertising anywhere online, print or digital. So how do you physically know that that is your best buyer? So off market sales, for me, are big no, no. I despise them. I despise agents that do them, and I really question their ethics on are they doing the right thing for their vendor. So a little bit of a controversial one. I would love to hear your feedback. If you’re an agent and you’re listening to this, or you’re a seller and you’ve sold your property off market and you had a fantastic result or a really bad experience, I’d love to hear about it. And if you’re an agent and this is your form, I’m more than open to have that conversation with anyone about off market selling.
So I would love to hear your thoughts. Post a comment below. Thanks for tuning in. Nice quick one to get you through the day. Thanks for tuning in for another episode of 3 Suits. I’m your host, Chris Gilmour.