Homes selling in secret

Article courtesy of The Daily Telegraph January, 2010 
 
THOUSANDS of homes are selling in secret, without a marketing campaign, online advertising or even a "for sale" sign on the front lawn.

Affordable homes in Sydney are being sold moments after being publicly listed because real estate agents are giving hungry buyers in their own databases a sneak peek before properties officially hit the market.

At the top end of town, private vendors reluctant to list multi-million dollar mansions publicly are going through silent networks to attract only genuine buyers.

Although the practice has long been routine for luxury homes, negotiating an off-market sale is becoming more popular in Sydney's beachside suburbs, inner-west, east and North Shore, agents believe.

Potential purchasers are turning to buyers' agents who, for a fee, evaluate a property's suitability, then bid at auction or negotiate the best deal.

Real Estate Buyers Association president Byron Rose said silent listings had surged during the global financial crisis, when wary sellers did not want to create a perception that they had money troubles.
"In a certain price range, it's quite common. When you reach the $3 million to $4 million mark, up to 60 per cent of sales are off-market,'' Mr Rose said.

"When people advertise in a downturn, they think there's a financial problem with the people selling, but that's not always the case.''

NSW Real Estate Institute president Wayne Stewart urged purchasers to get on agents' databases for property previews in a surging market of ``instant buyers''.
"Agencies have extensive databases, updated daily. Buyers come in through this marketplace and snap houses up before they hit the market officially,'' Mr Stewart said. 
 
PK Property Buyers Agents managing director Peter Kelaher said he was seeing more buyers frustrated by the lack of stock. "A buyers' agent can find silent listings that are not on the net or in the paper,'' Mr Kelaher said. "People silently list if they just want the real buyers coming through without the hoo-ha.''
 
Eureka Comments: About 30% of properties we buy are never advertised for sale. For you, the buyer, this can mean big savings off the purchase price, often securing properties well below market value.
Vendors are happy to sell this way as it can be a very easy, stress free and quick transaction for them and can save them from the hordes of people traipesing through their house, and the endless hard work trying to keep the house to 100% presentation.  Becomes a win win for all concerned!