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Proptech Carpool – Off Market Properties And How To Access Them? ft. John Carew

April 4, 2019

Around 30% of all real estate transactions in Australia are done off market. John Carew, Director Mayfield Properties shares his insights and how off market properties open up more opportunities to buyers.

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Here’s the transcript of the video:

As a buyers agent you also get access to a lot of off-market properties.
What are they, tell me about them?
And how do you guys get access to them?
Yeah. Well look, we just bought one on Friday actually off-market in Ashfield.
So essentially, off-market properties are properties that are not yet essentially publicly listed,
 in REA, Domain or any other portal. You know Soho and the like so,
they're properties that there's two ways they can come into the world.
1. They're genuinely an off-market seller. They're very private.
They might be getting divorced. You know,
they might need to do something quite quickly
and therefore they don't have time to do a full campaign
and styling and photographing and all that sort of thing.
So that's one example, and then I guess in between that
and being on the market we've got another category that we sort of called pre-market
where they're going to launch on the market,
but we get access to it before it's gone live,
you know, maybe when it's being photographed. You know sometime around then
and we can get through, have a look at it
and if it works for our clients potentially do a deal with them.
So they're a really good way of opening up other opportunities to
buyers that they otherwise wouldn't be aware
of. What buyers need to be careful of with off-market properties is that
they're still doing the same level of due diligence
and rigor around the pricing expectations
what it's worth and not cutting any Corners just because it's off-market.
Yeah, you know in some instances buyers are actually
better even if they're aware of an off-market property to let it come onto the market
and purchase it at a later date
because the vendor's pricing expectations might be 10 to 15% above market. Gotcha.
You know, so for the sake of you know, 4 weeks or 6 weeks you're better to wait that time.
Generally with you're off-market properties are there
discounts there like guys are trying to sell it a little quicker
or you tend to pay premium or it's a bit of a mixed bag.
It's a mixed bag. And this is again where buyers need to be careful,
you know, because you don't want to be paying a massive premium on something just
because it's off-market. Definitely
if you've got a vendor say that maybe has just purchased something
and they really need to sell quickly
they're motivated. They're not testing the market.
But just with the way that the market has been over the past 12
or 18 months a little bit more fickle obviously in the balance between buyers
and sellers is definitely shifted upon what it was in 2017
and before, you know more vendors I'm seeing now are willing to engage at sort
of what I'd consider a fair value off-market to do it cleanly, quickly with
minimal fuss than they probably were in the boom times
because things were going so strong
that they were confident that they'd have 10 people at the auction, get 10 or
 15 percent more than they were hoping.
So yeah, the dynamics with that has changed
but look, it's a really good way that buyers agents can add value to their clients.
Yeah. And you know, just open up other doors that
literally wouldn't have been open to them before.
Yeah.
Soho
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