There has been a slump in the number of ‘off-market’ property sales over the past year, according to the latest research. The Negotiator reports that vendors are turning away from selling their homes independently instead of using an estate agent. This practice increased during the pandemic when the property market hotted up.
Buyers scrambled for larger properties with more space to work from home, or sought to relocate to the countryside. However, the bubble burst as interest rates soared and mortgages became less accessible.
This drove house prices down, and as a result it became more difficult to achieve a good price solely through word of mouth or insider contacts.
Katy Billany, Executive Director of the data analytics company TwentyEA who carried out the research, said: “Off-market sales gathered pace in the ‘race for space’ during the pandemic which saw waiting lists of buyers snap properties up without them needing to go online in some locations.”
She added: “Last year, the market was slower-paced and would have created uncertainty for sellers, with some preferring a few low-key viewings instead of a full-blown marketing campaign which may not have been successful.”
“This year, although more deals are taking place, many sellers have remained overly optimistic on price despite high interest rates creating headwinds for buyers. We suspect sellers’ price ambitions are driving many to chase the widest possible audience for their property.”
What are the advantages of using an estate agent to sell your property?
The vast majority of sellers choose to use an estate agent for a wide range of reasons. These include the following:
Insight into the local property market
An established estate agent will have experience and knowledge of the local neighbourhood, which means that will have a good understanding of how to competitively price the property. They will also be able to ‘sell’ the area to potential buyers with extensive knowledge of local amenities, transport links and so on.
Professional marketing
The estate agent will arrange professional marketing and sales of the property, including photography, measuring up, producing leaflets, placing online adverts, fixing a ‘For Sale’ board, and handling queries and viewings from potential buyers. This process is essential to help reach the widest possible audience and achieve the best offers.
Handling the negotiations and sales
The business of negotiating a sale price can require careful handling, and an estate agent will be experienced in this practice. The agent will also handle the sales administration and liaise with the solicitor or conveyancing team on the vendors’ behalf.
Why do people choose to sell off-market?
The main motivation for selling off-market is often to avoid the estate agent’s fees. However, this advantage can be cancelled out by a lower sale price, because selling off-market limits the exposure to potential buyers and therefore can result in fewer and lower offers.
