How off market property sales work in Australia

An off market sale is a property sold without public advertising. It is still a private sale, so the same vendor disclosure, underquoting and cooling off rules that apply to any private sale in that state still apply. Here is how it works, why sellers choose it and how to check you are paying a fair price.

What is an off market property sale?

An off market sale is a property sold without public advertising. It is not listed on the major property portals, and buyers hear about it through the selling agent's database, other agents, buyers agents or a direct approach.

You will also hear it called a pre-market, silent or quiet listing. Off the plan is something different: that means buying before a building is finished, however it is marketed.

How does an off market sale work?

1. 1
   The seller appoints an agent

   The agent still works for the seller and is paid by the seller, even though there is no public campaign.

2. 2
   The agent contacts likely buyers

   Usually their own database of buyers, other agents and buyers agents with a client who fits.

3. 3
   Buyers inspect and make written offers

   Only a written offer can lead to a binding contract. The agent will normally pass every offer to the seller, unless the seller has told them not to.

4. 4
   The contract is signed

   It is a private sale, so the normal contract, vendor disclosure and cooling off rules apply.

5. 5
   Settlement

   Usually 30 to 90 days later, the same as any private sale.

Why do sellers sell off market?

The trade off for the seller is fewer buyers. With less competition, the property may not reach the price a full campaign could have.

Are off market properties cheaper?

Not automatically. With fewer buyers there can be less competition and less bidding pressure, but many off market properties sell at or near market value, and some buyers pay a premium for access.

The bigger risk is price transparency. Without a public campaign there are fewer signals about what the property is worth, so you need to check the price yourself.

What rules still apply to an off market sale?

Off market does not mean outside the law. The sale is a private sale, and the agent still has to follow the rules in each state.

Is there a cooling off period on an off market sale?

Usually yes, because most off market sales are private sales. Auctions have no cooling off.

How do you check the price without a public campaign?

• Ask the agent how the price was set. In Victoria, ask for the Property Price Statement and the comparable sales it lists (up to three).
• Check recent comparable sales yourself. NSW has a free government sales search, and Victorian off market sale prices are now published online.
• Get a rental appraisal so you know what the property will earn.
• Consider an independent valuation, and remember the lender will value it too.
• Do not reveal your maximum budget early.

How do buyers find off market property?

Off market listings reach the people agents already know. Buyers usually find them by:

• Registering with local agents and giving them a clear brief: price, suburb, property type and must haves.
• Using a buyers agent who speaks with selling agents every day.
• Signing up for agency off market alerts.
• Approaching owners directly.

At Citadel Agency, most of our client purchases are secured off market or before they reach the portals, because we speak with selling agents across Australia every week. Access always depends on what is for sale and what the seller wants.

General information only. It does not take your objectives, financial situation or needs into account and is not financial, tax, credit or legal advice. Citadel Agency is a licensed buyers agency (licence 092247L) and does not hold an Australian Financial Services Licence.