Need to sell your building? Read on.
The common theme in the real estate market today seems to be buyers who are actively looking for more “off market inventory”. Almost every active agent you speak with will tell you that they do in fact talk to numerous people who claim to be buyers but just don’t like what’s on the market. They’d rather see properties that aren’t on the market because they believe they can either get a better deal or find a value-add opportunity where they’d build some additional equity.
What this means to people selling their real estate (and their brokers):
If your property listed on a site like LoopNet.com, RedFin, your local MLS or pretty much any mainstream online real estate listing site, you’re essentially relying on those platforms to attract potential buyers to your property that’s for sale. Your building is presented on a uniform template (the same exact way every other property on that site is presented). People can see all the details about it in a way they’re used to, because they scour these sites so frequently that their brains are programmed to look for certain things. One of those things is your PRICE.
When a property’s price seems fairly low, what happens? Everybody wants to know why. So, you’ll get a bunch of calls and hopefully some offers. You’ll spend quite some time juggling between offers and eventually end up in contract at a much higher price than you listed the property for because of the bidding atmosphere created around your deal. This is the exact opposite of what happens when a property is listed at a price more than the property is worth. You’ll get a few low-ball offers from buyers who aren’t too serious and end up in contract at a much lower price point. Let’s not even mention the complications that come up during escrow like the real estate not appraising for what you think it’s worth and the buyer’s lender pulling out. IT HAPPENS ALL THE TIME.
In the most common scenario, an overpriced listing will sit on the market for months mainly because most people see the price and immediately move on. They gain the impression that the seller is simply stuck to his/her price, which is an immediate turn-off for buyers. That’s where the whole “put my property on a site online and wait until someone pays my price” mentality is extremely flawed. You can accomplish “your price” through sharp negotiation skills and marketing techniques, but it’s never going to happen when your property is branded into people’s heads as “that overpriced one”.
That’s where the off-market real estate community becomes a beneficial tool for sellers. If you’re able to engage a savvy broker who has a vast network of connections and is seen as the source for deals, you’ll be able to sell your property effortlessly.
More on this topic at a later time. For now, I’ve got calls to catch up on! Check out my other “offmarket” related posts in the meantime. Thanks!