When it comes to investing in property, there’s a clandestine slice of the market that often goes unnoticed by the general public but can hold the keys to some of the most coveted homes: the off-market sector. It’s a realm where transactions occur in whispers and handshakes, beyond the reach of public listings and conventional estate agent windows. But how does one navigate this secretive market, and why might it be attractive for those looking to invest in prime property?
To shed light on this, The Telegraph talked to Jo Eccles, the founder of Eccord, a company that specializes in procuring and managing prime residential properties in central London. With 17 years of experience under her belt, Eccles has handled over £1.5bn in residential property for landlords and sourced elusive off-market properties for buyers.
The Allure of Off-Market Properties
In the echelons of high-value real estate, particularly the ‘super-prime’ market, discretion is often favored. Prestigious properties trade hands without the usual fanfare of listings or signs. This stealth approach caters to a niche clientele and is executed by estate agents trusted with the sensitive task of identifying suitable, often affluent, buyers.
Last year, two-thirds of the properties Eccles’s firm acquired for clients were off-market, showcasing the prevalence of this hidden marketplace. For example, a wealthy buyer in north London was presented with six unlisted properties out of eight on a viewing tour, indicating the substantial number of homes that evade mainstream advertising.
Understanding the Off-Market Sector
Off-market deals are characterized by their privacy. Sellers might opt for this route for various reasons, including celebrity status, possessing valuable private collections, or personal situations like a divorce. Viewings are limited, and details are guarded by non-disclosure agreements (NDAs) and password-protected materials. Eccles recalls instances where a home was sold after a single viewing to a client, with everyone involved—from mortgage bankers to surveyors—signing NDAs.
Accessing the Secret Market
Gaining entry to this exclusive circle requires a focused search and strong relationships with agents. If you’re early in your property search, chances are you won’t be privy to these secret listings. It’s only once your intentions are clear and specific that agents might consider you for these private viewings.
Building Relationships with Agents
It’s not enough to be a cash buyer ready to transact quickly; you must also present yourself as a credible and serious buyer. Agents and sellers look for trustworthy buyers, often valuing them over those making higher offers. Politeness, quick communication, and transparency with agents can help cement your position as a favored buyer.
Trawling Through Archives
As a buyer without an agent, you can delve into sold property data to identify potential matches and reach out to the agents involved in previous sales. While it’s more challenging to forge these connections independently, persistence can pay off, as evidenced by Eccles’s experience securing a £9m Chelsea garden square house that wasn’t on the market.
Exploring the Rental Market
A less conventional approach involves the rental market. Sometimes properties up for rent might be available for purchase if the landlord is open to selling. Collaborating with estate agencies to gauge landlord openness to a sale can unlock opportunities that aren’t visibly listed.
The Importance of Caution
While off-market transactions have an air of exclusivity and can be thrilling, buyers must approach with caution. Valuations in the off-market arena aren’t tested publicly, so it’s critical to do your due diligence and ensure you’re not overpaying due to the allure of exclusivity.
The Final Word
For those in pursuit of a dream home, the off-market route can be a treasure trove. But it demands dedication to the art of networking and a reputation as a serious buyer. It’s a world where the right connections, a solid understanding of the market, and discretion can lead to acquiring a prestigious property that may never grace the window of a high street estate agent.