The idea of selling a home ‘off-market’ has been gaining traction, especially among those who prefer discretion and exclusivity. But what does this mean for sellers across the UK, and is it the right approach for you? The FT published a useful overview.
Off-market selling, also known as a “quiet listing,” is when a property is sold without public advertising on major property platforms like Rightmove or Zoopla. This approach offers a degree of privacy and can protect the seller from the potential stigma of a property that appears to languish unsold over time.
John, a former fund manager from the home counties north of London, embodies this trend. He has been trying to sell his £3 million house for over a year without listing it on popular real estate websites. “We’re under no pressure to move,” John explains, emphasising the lack of desperation often associated with long-standing market listings.
The Growing Trend and Its Drawbacks
Interestingly, one in three homes priced above £1 million weren’t widely advertised last year, marking a peak since records began in 2007. This shift towards privacy reflects a broader trend emanating from London’s “super prime” market to more widespread properties.
However, John’s experience highlights a significant drawback: the limited exposure may reduce the number of potential buyers. Despite this, he plans to continue with a local estate agent, hoping that serious buyers will approach directly. James Forbes, of Forbes Gilbert-Green, points out that the higher the property’s value, the more targeted the potential buyer pool is, stressing that privacy is crucial at this level.
The Perception and Reality of Off-Market Sales
There is a perceived exclusivity that comes with off-market sales, which can be appealing. Roarie Scarisbrick from Property Vision notes that the term “off-market” is often misused, leading to confusion about what it genuinely entails. Nigel Bishop, a veteran agent, suggests that the off-market label can sometimes be a marketing gimmick rather than a genuine selling strategy.
The Pre-Market Strategy
Another approach is the “pre-market” phase, where properties are shown to select buyers before they are listed online. This strategy was particularly useful during the property boom of the COVID-19 pandemic but has seen less effectiveness as the market cooled down. Chris Husson-Martin from Hamptons in Salisbury recalls, “We were selling so much off-market because people were begging at our door.”
Pitfalls and Potential
The off-market approach isn’t without its pitfalls. There’s always the risk of not reaching enough potential buyers, and the strategy can backfire if the property doesn’t attract the anticipated interest. Property portals have also clamped down on the practice of briefly taking listings offline only to relist them soon after to attract fresh attention.
Is Off-Market Right for You?
The decision to sell off-market should not be taken lightly. It suits sellers who value privacy and may have a niche buyer in mind. However, for those looking to maximise exposure and potentially attract a higher number of bids, traditional listings might be more effective.
John remains skeptical, viewing his off-market attempt more as a necessity for privacy than a strategic choice to enhance the property’s value. “It’s most relevant in prime central London. Outside of that, it’s just marketing really,” he concludes.
For potential sellers, the key is to understand the specific needs and characteristics of their property and market segment before choosing an off-market sale. It might offer an edge in some cases, but it’s not a one-size-fits-all solution.