Off-market home trend cuts prices
Agents warn vendors not to limit sale opportunities
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