How to Find Off-Market Properties
Off-market properties, also known as pocket listings, are real estate that are not included in MLS listings but are available for sale (or soon to be.) Investors and real estate agents often spread news about these real estate listings through word of mouth.
They can be excellent opportunities for anyone interested in real estate: regular homebuyers, property managers, landlords, wholesalers, and institutional property owners who want to grow their portfolio. Knowing where to find them can enhance your real estate investing strategy by finding home sales without the competition.
Benefits of Pocket Listings to Potential Buyers
Off-market properties are excellent investment opportunities. They have far less competition, no bidding wars, and typically lower sales prices. This makes off-market deals prime opportunities for real estate investors, wholesaling, and standard homebuyers alike.
Off-market real estate deals are typically stress-free acquisitions, whether they are “coming soon” listings, pocket listings, or homes that aren’t on the Multiple Listing Service. They can become your next dream home, an excellent rental property, or an affordable home for a first-time homebuyer.
How do you find off-market real estate?
Finding off-market real estate is easier when you work with real estate professionals. For example, knowing a real estate broker who runs a brokerage with strong connections to investors can be a game changer.
Real estate agents with such connections can help you evade the competition and secure a sale before they list properties on the open market. Since they know the phone numbers to verified investors and are up to date about what they have in mind to sell, these agents can tell you about these off-market deals before they are even listed.
There are also ways you can search for an off market listing yourself. This quick guide will walk you through the most common options.
Evade Competition with Off-Market Real Estate Sales
In 2024, we are no longer in a hot seller’s market, but today’s housing inventory is still lower than normal. This shortage gives off-market listings more of an edge than in a traditional buyer’s market with plentiful inventory.
Source: Downloadable Housing Market Data – Redfin
In a rent-heavy market, there is fervent competition for desirable investment properties. Turning to houses that aren’t on the open market can give realtors and investors an edge. In fact, this practice is actually quite common and necessary for the competitive investor.
Specifically, the NAR reports that 11% of all homes sell without getting listed on the MLS. These homes may be “coming soon,” “temporarily off-market,” an early-stage foreclosure, or a simple pocket listing in which the agent contacts buyers directly about. Needless to say, there are plenty of opportunities to grab a seller’s attention before the competition arrives!
Buying an Off-Market Property
You’ll need extra resources beyond a Google search to buy an off-market property. Overall, connecting with a real estate agent at a reputable brokerage is the best way to get an edge. These pros have the contact information of investors who need to sell properties quickly and without the hassle of putting them on the market.
Real estate agents who have investor and builder clients (like at Marketplace Homes) offer a considerably higher advantage since they will be among the first to know about rentals to be sold or new builds that are almost complete. Here are some other ways to find an off-market property:
- Real Estate Auction websites
- Bank Websites
- The Newspaper
- Social Media
- Word of Mouth
- Inheriting a property
- Off-Market Listing Services
- Public Records of Expired Listings
- For sale by owner (FSBO) homes
- Websites like Zillow
- Cold calling property owners
- Calling real estate wholesalers
These sources can point you to homes sold by owner, expired listings that failed to sell, or distressed properties that couldn’t make a standard sale. Sending direct mail marketing to these individuals can potentially lead to an off-market purchase agreement.
If you can strike a deal, scrutinize the property to ensure it will be a good investment. For instance, foreclosures are often in less-than-perfect condition because the homeowner has no incentive to keep up with the property anymore.
- Note: As with any home purchase, you must do your due diligence before buying an off-market property. This process ensures that you won’t be in the negative with repairs after you buy the home.
How to Buy Off-Market Homes Quickly
To get the broadest pick of off-market properties, you should be ready to buy as soon as possible. Offering an all-cash offer is your best bet because nobody has to wait for financing. It also enables you to bypass the mortgage process, which can be an obstacle if you want to buy a home with an old roof.
It would be best if you also make a strategic offer. Working with a real estate agent will protect you from a lowball rejection or over-offering when it’s not necessary. You’ll also have a pro to negotiate terms and create a legally-sound contract that honors all parties.
Benefits of Buying Pocket Listings
When you buy an off-market home, you get access to benefits that aren’t available with standard market sales.
- You aren’t competing against multiple offers. This means that you don’t need an escalation clause or to make extra concessions that would be present if you had to go against another buyer. This also means you’re in less of a rush and can make an offer without time constraints.
- Potential to get a deal. Sometimes potential sellers want to avoid dealing with multiple showings. These people will be more inclined to take your fair offer instead of braving the “drama” of selling on the open housing market. This makes them great fix and flip opportunities!
- More choices for you! When you have both the open market and off-market listings in your back pocket, you have more options than the regular buyer.
No matter how you buy an off-market property, working with a real estate agent is important. With a pro, you can determine an off-market listing’s fair market value.
Let your agent compare comps through a real estate market analysis so that you can make a fair offer that benefits you and doesn’t feel too low to the seller. They can also answer all your other questions about buying a home and put you at ease.
After Buying an Off-Market House
If you buy a property off-market, there may be some imperfections as these homes are usually bought at a discount. Do not worry about this. Marketplace Homes has a full-cycle investment management team called Marketplace One which can take care of the full cycle of management from acquisitions, renovations, marketing, filling homes, moving tenants in and out, rent collection, and dispositions.
Let us know what type of property you’re looking for and we’ll do our best to find unique opportunities for you. Skip the hassle of bidding for foreclosed homes in the local real estate market and shop off market homes with a brokerage that already has the connections.
Buy a Home with Marketplace Homes
Contact us today to learn more about our real estate services and special incentive programs that can help you acquire the house of your dreams! Whether it’s on the market, to-be-built, or a pocket listing, our agents can find something that’s right for you.
