Finding great property deals is one of the most important parts of your investment journey, but the best deals are usually the ones that aren’t advertised using the likes of Rightmove, Zoopla, and OnTheMarket. In this blog, our investment experts will outline the secrets to finding great off-market properties in the UK.
So, how do you find off-market properties? Finding off-market properties is easier than you might think. Here’s how you can find one for yourself:
- Networking with property professionals
- Using word of mouth
- Marketing yourself as an investor/buyer
- Estate agencies (they likely know about off-market deals)
- Approaching the property owner directly
- Property deal sourcers
Read on to find out more about what off-market property means, the benefits of buying a property that isn’t directly advertised on the market, as well as how you can source the best off-market property deals.
What is an Off-Market Property?
Off-market property sales used to be reserved for prestigious homes of a particular value, or homes with a historic interest. However, they are also popular with property investors, who search for off-market properties as they are usually sold Below Market Value (BMV). These types of homes are sometimes referred to as the ‘secret property market’.
How To Find Off-Market Properties in the UK
Finding off-market properties in the UK might seem like a daunting task at first, but trust us, it is much easier than you think. Below, we outline just a few of the ways that you can find property purchase opportunities that aren’t being marketed to the general public:
Having a strong circle of connections comes with a whole host of benefits – it’s often not what you know but who you know. The right people can keep you informed about upcoming properties in the area if you let them know what you are looking for. Focus your networking efforts on professionals in the property sector. You should aim to network with:
- Other property investors/landlords with a large portfolio
- Property developers
- Real estate agents
- Property business contacts
Be sure to also let your friends, family, colleagues, and wider network know the type of property that you are looking for. You’ll then be top of mind when an off-market property arises.
Directly Approaching the Owner
If you have your eye on a particular property, then directly approaching the owner of the said property could be a great option. You could simply knock on their door and showcase your interest. If you aren’t nearby (or if knocking on the door sounds a bit intimidating!), find the property owners’ contact details through the Government Land & Property Registry and go from there.
Although estate agents won’t directly advertise off-market properties, it is likely that they often know about these opportunities through their extensive network. Once you have an idea of the area that you’d like to purchase in, get in touch with all of the estate agents in that area and they should be able to point you in the right direction.
Property Deal Sourcers
Believe it or not, there are people out there dedicated to sourcing off-market property deals for investors across the UK. A property deal sourcer usually has a background in property and a strong network of property professionals, keeping them up to date with the latest developments and deals.
Although they take a small fee for their services, usually 1-3% of the final property price, using a property deal sourcer is a much quicker way to find a property. They keep your goals and budget in mind, so you can rely on them to get you the best deal possible. They work as the middleman between you (the investor) and the property seller during the whole negotiation process.
Why Should You Buy Off-Market Property?
Off-market homes are much more exclusive than homes on the open market, which can come with numerous benefits for property investors:
Off-market properties don’t have the complication of other parties involved, which often draw out the process by putting in counter-offers – resulting in a back and forth that can be weeks, if not months long. Particularly if you approach the property owner directly, you may be the only one interested in buying.
Some off-market sellers are keen to sell their homes within a short space of time and are therefore willing to offer a heavily discounted price for someone to quickly take it off of their hands. This means that investors like you can get a property below market value (BMV), often by tens of thousands of pounds.
Quicker Buying Process
As we mentioned earlier, there is limited back and forth between prospective buyers when it comes to off-market properties, which is a main contributing factor to long purchase processes. As long as you have your finances in order, and a good solicitor on your side; buying off-market property is a quick and relatively smooth process.
Is There Any Reason Why You Shouldn’t Buy Off Market Properties?
Buying an off-market property might all sound good to be true, but the truth is, there aren’t any added risks to this type of property sourcing as an investor. The main issues, such as deals falling through or gazumping, are all risks that come with buying a property anyways, whether on the open market or not.
Choosing to buy off-market or a property on the market is just one of the things you need to consider before investing in property. Unsure what else you need to know? Read our latest blog; 10 Things To Consider Before Buying an Investment Property
Property Deal Sourcing From Valor Properties
If you’re a keen property investor, looking to gain a BMV property in a short timeframe, then off-market properties would hugely benefit you. Why not work with a property deal sourcer who can point you in the right direction?
Our experienced property sourcing agents can help you find investment opportunities below market value but return the highest possible rental yield within the Leeds and wider Yorkshire area.
Whether you are a first-time landlord or a seasoned property investor, trust Valor Property to maximise your return on investment. We guarantee a minimum 15% NET yield from your investments with us.
Is it Good To Buy a House Off-Market?
Yes! Buying an off-market property comes with numerous benefits, which include but are not limited to:
- Cheaper prices, often BMV (below market value)
- Less competition from other buyers
- Quicker process from start to finish
- More exclusive properties, including those with interesting or historical features
Why Do People Sell Their Properties Off-Market?
Off-market property sales aren’t just appealing to buyers, but property sellers can also experience several benefits from this type of sale:
- Fewer viewings, usually only from serious buyers
- More privacy, as floor plans and pictures from inside the property aren’t available for all to see (keeping nosey neighbours to a minimum!)
- A quicker process from start to finish
- Can test the market and different asking prices