Expert Eye - Buying Off-Market, Secret Source

Following a WOOLF Interior Design and Interior Architecture previous journal that explored the changing shape of the selling market, in the form of design lead estate agencies such as themodernhouse.com or inigo.com, we now take a closer look at the buying end of the market. At the WOOLF Interior Design and Interior Architecture studios, both in Bath and London, we work with some of the property industry’s best and brightest residential property search agents; whose expertise covers the South West of England and Central West London. It is often the case that once a property sale is made, the new owner may wish to make interior design changes to personalise and enhance their new home and this is where WOOLF Interior Design and Interior Architecture can offer our high end interior design services.

There are those who believe that some of the best properties are sold without advertisement. It is certainly true that many sellers aim to sell their homes off-market before listing them on the open market. Buying off-market increases your odds of finding the perfect home because it removes the element of competition; every home you see will be an exclusive. You will have access to properties that other buyers are not able to see. Instead of bidding against other buyers, you settle on a price by coming to a mutual agreement. Explore WOOLF Residential Projects.

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Is it just about Discretion?

Apart from privacy there are other reasons buyers and sellers might choose to trade off market. Some sellers are simply looking for a fast, no-fuss sale. Price might not be the only motivation, so the vendor sees an opportunity to move quickly without the hassle of a drawn-out marketing campaign and inconvenient viewings. Vendors often spend on marketing and dressing a property, a cost which might be saved on as ‘wiggle room’ in a quiet negotiation.

In addition, some sellers believe off-market helps them achieve a price premium. Some sellers think if the perfect purchaser falls in love with a home, they will be prepared to pay a premium just to keep the listing from going public.

Above all, for sellers it is also very important to not have the property linger on websites which can compromise them, if not sold relatively quickly properties are perceived as stale. Many sellers will have an initial ‘off-market’ period which precedes online marketing. This period gives them two opportunities for sale. Explore WOOLF Residential Projects.

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Expert Insight – Buying a Home Off-Market

Buying agents are skilled at finding such properties by linking buyers and sellers together through their own network of contacts. Agents often acknowledge that “higher value properties (typically above £10m) are often launched to the market discreetly – with no advertising at all”. Increasingly sellers at the high end of the market are insisting on zero public visibility. The market them becomes managed by ‘brokers’ who are dealing behind the scenes.   

Managed by Brokers

Karim Bazzi of Homes One, is one of the foremost buying agents in London.  Karim is the most trusted, discreet and knowledgeable search agents, loved by his clients for his honest and fair-minded approach. Karim’s approach is about “Unearthing the gems, at all levels and for all types of clients.” Explore Homes One.

We asked him whether he thinks that we are increasingly seeing buying/selling luxury homes off market? Karim explained that we have indeed seen a large increase in the off-market scene in recent years, “often properties are traded between buying agents on a one-off viewing basis. More and more experienced residential estate agents have left the large brands and set up on their own and therefore there are more vendors being represented by more independent agents.” Explore Homes One.

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This means that, where in previous times, there were only a few agencies with properties above certain price points the market has become fragmented and much more like the US broker model with many agents representing only 3-5 properties at any one time and not listing them online. This makes the role of the buying agent much more complex. “The black book is everything particularly at the higher end of the market.” Explore WOOLF Residential Projects.

Vendors are also fussier; “credibility is crucial now since many vendors want to have 5-10 viewings max and only clients who are represented are likely to be asked into properties. As a buying agent therefore, relationships with the top buying and selling agents are key so that your clients are top of the list. “The fact I have been buying properties for nearly 20 years means that these relationships are tried and tested and trust is of the utmost importance in the industry.” The online portals such as Zoopla and Rightmove could be missing out on the whole picture.

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Why Buy Off-Market?

Apart from privacy, the most notable benefit to house hunters is that a low-profile sale sees less competition. Logic dictates you should, therefore, be able to secure the property reasonably. Off-market deals tend to be more level-headed affairs without the emotion and mayhem of an on-the-market situation, presenting buyers the chance to negotiate terms without having to look over their shoulder.Generally an off market sale fits into one of the following categories:

1. Direct Approach - The person who wants to buy a particular house has posted a letter through the door of the house they are interested in to directly introduce their interest to the current owner.  Alternatively, an agent has spotted an ideal property that suits their client’s requirements and goes directly to the home owner on behalf of the client.

2. Discretion - Where a seller has appointed an agent, but they want the sale to be confidential. It is not uncommon in these situations that all those involved have to sign confidentiality contracts to ensure the details are not available or shared in the open market.  Typically, this might happen with well-known personalities or celebrities who wish to keep their property moves private.

3. Advance - If a seller has plans to put their home on the market later in the year but does not want to miss a potential sale before that point, a home might initially be made available off market. 

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One Step Ahead

The buying agent’s role has never been so widely in demand, or so important at the prime level of the market. Peace of mind is priceless and the right buying agent will hold your hand to ensure you avoid mistakes and buy well. Karim says that “many of London’s most desirable properties never come to the open market and buying agents always have an ear to the ground and access to properties that are off market or under the radar. Explore WOOLF Historic Projects.

“Time poor, cash rich individuals are not in a position to build the strong relationships with estate agents, to ensure first access to properties hitting the market, or crucially to be made aware of those that don’t ever get there”.

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Discretionary Sellers

Tom Hudson, Director, Middleton Advisors (country), has also added that “the majority of houses in the country market are owned by discretionary sellers. They do not necessarily have to sell and, as a result, they tend to ’try’ the private market to see whether their expectations can be met and if there is a buyer out there”.

Only a handful of privileged buyers will be made aware of its availability, which in turn creates exclusivity. Conversely, purchasing a prime or super prime property off market may come at a premium price and wealthy buyers who wish to own a slice of prime central London real estate, understand that more often than not, it is worth paying extra to get what you want. Explore WOOLF Historic Projects.

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