Selling off-market - Camilla Dell, Black Brick Property Solutions

Selling off-market

One impact of the recession is the growing trend towards selling off market, something that we witnessed last year and looks to continue into 2010. An individual’s financial activity is now more than ever subject to the scrutiny of friends or colleagues, so many feel the need to be discreet when they choose to sell up.

Of course selling off market is not in any way a new approach – high profile individuals have been doing it for a long time, recognising the benefits of keeping their house from the prying eyes of the open market. It is an ideal way to limit viewings to known or vetted buyers who will be pre-approved by their buying agents, and can therefore prove themselves to be serious and committed. The issue of time wasters or ‘window shoppers’ can be completely avoided.

From a buyers perspective, there is a certain “buzz” and exclusivity associated with selling off market which actually may help to generate more interest in a property. Buyers, particularly at the top end, like to feel they are getting access to something that only a handful of other people have seen. This makes the property seem rare and therefore entices certain buyers to make an offer more readily. You may even be able to sell for a premium going via this route. Canny buyers also know that by going through a search agent, they will only be shown suitable options and will not have their time wasted being shown endless inappropriate properties.

Of course, a property that is being sold privately will undoubtedly be shown to fewer buyers and potentially take longer to sell. However, bear in mind that the quality of buyers to come through the door is more important than the quantity. Another point to consider is that as fewer buyers see the property, there is less competition, and therefore there is a possibility that a better price could be achieved by marketing the property on the open market. A sensible price could generate multiple bids. These are just some of the factors one has to weigh up.

So which option is best for you?

If you don’t need to protect your identity and there are no sensitive issues surrounding the sale, choosing the right estate agent and marketing the property openly is the best route. Initially it’s best to go with just one agent on an exclusive basis and get them working hard. If they don’t have any success within a few weeks then you can consider instructing another agent, but be careful not to overexpose the property and have it on the market with hundreds of agents, as this can put buyers off and make them wonder if there is something wrong with the property.

If you are selling a property at the top end of the market - £10m plus - then perhaps the off market route is best. Again, the choice of selling agent is crucial and a careful selling strategy needs to be planned out. Many buyers at the top end will be represented by buying agents, who will have first access to properties being marketed privately or quietly. This ensures you get only serious and suitable buyers through the door from day one.

Camilla Dell

Camilla Dell is Managing Partner of Black Brick Property Solutions LLP (www.black-brick.com) Black Brick is London’s leading independent buying consultancy, acting exclusively on behalf of buyers to source and secure the best property at the right price.