Off market properties can create unique investment opportunities. This is because the property up for sale can’t be purchased in the traditional fashion. It won’t be showcased on property portals and high-street agents won’t be advertising through their normal marketing channels. As the sale of the property is kept out of public knowledge, it can be difficult sourcing off market deals.
This is exactly what the seller of the property wants. The seller will have their own reasons for taking their property off market, such as wanting a discreet quick sale or simply looking to save money on selling costs. Depending on your needs as an investor, this can work either to your advantage or against it. You may secure a new property for your portfolio in a short space of time, however it is worth keeping in mind, these off market deals can also command a premium price.
It’s worth considering off market properties, as there are some great deals to be done, however it is also important to evaluate if you’re paying the right price for the property. Finding off market properties for sale can be difficult, but this article will highlight the best way to source these unique opportunities.
Build Your Network
In order to find the best off market deals, a strong network is essential. As these opportunities are kept quiet, you need to have reliable connections within the industry. These may include:
- Investment agents
- Estate agents
- Building operators
- Property developers
These industry professionals are more likely to be kept up to date with the latest deals on the property market, and if you nurture your relationships with them, they will feel more inclined to part with their insider information.
By gaining access to this knowledge before other investors, it gives you more time to consider your options. If you decide that the investment is right for your needs, you may be able to make the first bid, which is crucial if the seller wants a quick sale.
An investment agent will be invaluable if you’re searching for a specific property. A great agent will already have the connections in place in order to find the best deals, and they proactively stay on top of the latest developments.
Do Your Research
As with any investment, it’s important to do your research before making a commitment. When a seller decides to go down the off market route, there’s usually a specific reason why. In many cases, the seller simply doesn’t have the time to go through the traditional method, and going off market means they don’t have to schedule viewings or spend time and effort marketing the property.
However, off market property deals in many cases are completed very quickly, which can put investors in a predicament; do you complete the purchase with the small amount of information you have, or do you conduct thorough due diligence first?
Even without details on the off market property for sale, you should at least take some time to research the average rental returns in the area and the type of tenant the property is likely to attract. Regeneration projects in the area also point towards healthy growth figures, making your investment suitable for the long-term.
If you’re unfamiliar with the location, an expert investment agent will conduct due diligence for you. Their priority is to ensure you get the best deal possible, and if they can’t put together a strong case as to why you should invest, they will advise you against making a purchase.
Don’t Assume Off Market Properties Provide the Best Deals
Off market deals have a reputation in the UK for providing some excellent deals for investors. From our own experience, we know this isn’t necessarily the case. It is true that off market properties for sale can save investors money, but the exclusive bidding nature can actually cause the purchase price to rise.
The term “off market” makes a deal feel more prestigious than it is. If you’re sure you want to invest in a certain type of property or in a specific area of the UK, it’s worth researching the opportunities that have been made available on the open market first.
Not only are these opportunities more readily available, you can use the information the seller provides to your advantage.
It’s rare that off market deals will allow viewings, particularly if the property in question is tenanted; buying a property on the market means your agent will have a good opportunity to assess the condition first, and you will also be able to request structural reports on the property.
Off market deals can be lucrative to investors, but your agent needs to be sure nothing is wrong with the property first. If the agent’s instinct tells them something isn’t right with the deal, you should walk away and continue your search.
Finding the Best Off Market Properties
As with all investments, there are two main elements you need to have in place before considering an off market property:
- An experienced property agent
- Extensive research
Without an agent who will support you through the entire process, you can’t be sure you’re getting the best deal for you. Without the right knowledge, you could miss out on better opportunities.
At Treo Investments, we pride ourselves on being experts in the UK property market. We specialise in finding our clients the right investments for them and we will always look to provide an honest opinion, if we feel the opportunity is not a right match.
For more information on how we can help you, speak to a member of our team today.