Off-mar­ket home trend cuts prices

Agents warn ven­dors not to limit sale op­por­tu­ni­ties

The Sunday Mail (Queensland) - - NEWS - EL­IZ­A­BETH TILLEY

IN­DUS­TRY ex­perts have warned of the risks of sell­ing “off-mar­ket”, with one lead­ing agent claim­ing it could leave a home­owner hun­dreds of thou­sands of dol­lars worse off.

With con­tin­u­ing low lev­els of stock and a rise in op­por­tunis­tic ven­dors, agents are re­port­ing an in­crease in off-mar­ket trans­ac­tions.

Off-mar­ket sales oc­cur with­out public advertising, with agents con­tact­ing in­ter­ested buy­ers pri­vately.

Po­ten­tial pur­chasers who have missed out at auc­tion are reg­is­ter­ing with sales agents to ask to be no­ti­fied if any­thing sim­i­lar looks likely to come up, while many are also go­ing to buy­ers’ agents who have data­bases of those think­ing of sell­ing.

But some agents have warned sell­ers risk ex­chang­ing for less than their prop­er­ties could be worth on the open mar­ket.

Place Es­tate Agents Kan­ga­roo Point di­rec­tor Si­mon Caulfield claims ven­dors sell­ing their houses off­mar­ket could be miss­ing out on up to 10 per cent of their prop­erty’s true value.

“My ad­vice al­ways is that clients should ex­pose their prop­erty to the mar­ket,” he said. “If you’ve only taken a hand­ful of peo­ple through the prop­erty, are you re­ally giv­ing it the best chance?”

Ray White New Farm prin­ci­pal and auc­tion­eer Haes­ley Cush cau­tioned that while sell­ers could save money on advertising costs by sell­ing off-mar­ket, a lack of com­pe­ti­tion meant they might not get the best price.

Mr Cush re­cently auc­tioned two sim­i­lar prop­er­ties in com­pa­ra­ble lo­ca­tions in the in­ner-city Bris­bane sub­urb of Spring Hill.

One ven­dor de­cided to spend $3000 on dig­i­tal advertising, while the other spent about $15,000 on a full cam­paign across print and on­line.

The former gen­er­ated 16 groups of peo­ple dur­ing the four-week cam­paign and a sale price just af­ter auc­tion in the early $700,000s, while the lat­ter at­tracted 50 groups and a sale price in the high $800,000s.

“To re­ceive three times the num­ber of in­spec­tions in such a small sub­urb cer­tainly adds weight to the ben­e­fit of a full mar­ket­ing cam­paign,” Mr Cush said.

Brian and Claire Maule are sell­ing their first home at Camp Hill af­ter spend­ing six years ren­o­vat­ing it.

They have de­cided to in­vest in an advertising cam­paign, list­ing the house with Steven Gow of Ray White Bulimba, as they be­lieve it will give them the best chance of get­ting the high­est pos­si­ble price.

VEN­DORS COULD BE MISS­ING OUT ON UP TO 10 PER CENT OF TRUE VALUE SI­MON CAULFIELD

DOOR OPEN: Brian and Claire Maule, with daugh­ter Sophia, 2, are tak­ing no short­cuts with the sale of their Camp Hill home. Pic­ture: AAP/Steve Pohlner

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