Sometimes, it can appear like there is low supply and high demand, making it harder to find good deals. However, many investors don’t realize that the MLS doesn’t show every home that is on the market. Turns out that most of the homes are sold monthly without using the MLS. This type of real estate is called off-market real estate, and many motivated sellers prefer using it.
Off-market properties can provide lots of benefits for buyers who understand what they are doing. By offering flexible negotiations and less competition, off-market properties can give buyers wide profit margins. However, you need to get leads from Lead Geeks to find these off-market deals so that you can make profits. This article explains what you need to know about off-market real estate.
Understanding off-market real estate
Off-market real estate simply means all the properties that are sold, but not in the traditional way. The listing broker doesn’t list the property on the MLS or even other similar platforms. The only way the sale of the property is advertised is usually through the agent, by word of mouth, or other sources. To find off-market property deals, you need to do the following:
Direct mail marketing
One of the best ways to find a great off-market real estate deal is to do direct mail marketing. Therefore, you need to find the target home sellers and send out ads like postcards that show your interest in buying their homes. Sometimes, there are some homeowners who don’t even realize that they are ready to sell until you present them with an appealing offer.
But before you implement this marketing strategy, make sure that you do due diligence. You need to research the behavior of the target market and the ad venues that can reach the ideal clients. From yellow letters to postcards to bus bench ads, you have endless options.
However, if you decide to implement a direct mail strategy, you need to remember that it may take a while to see the results. Don’t be demotivated if you find that you need to implement more than a single direct mail campaign without receiving any response.
You can find many websites that offer off-market property listings. These sites promise a lot of benefits for both sellers and buyers. The good thing is that these sites usually allow real estate transactions to happen without any need to list a property on the MLS.
Remember that while identifying homes online can be cost-effective, you can also have good luck when you use proactive lead generation methods. Because of the popularity of the internet, some off-market listings can also be found online, though they tend to be highly competitive. That said, it’s worth it to try this strategy because you cannot know what you may find.
Networking is perhaps one of the best lead generation strategies in the real estate industry, and this is true when it comes to off-market properties. You can find that networking has become easier with practice, so you need to put yourself out there.
With networking, it’s a good idea to search for real estate activities in your area. You can also check Facebook or bulletin boards to find groups that may be meeting in your local area.
Aside from this, you can decide to ask the existing real estate connections to create your network. Since off-market listings mean they are off market, networking is usually the best way to identify and get such deals. So if you have an interest in any type of real estate investment, then you need to build a network, especially if you are looking for off-market property deals.
Real estate agents
Real estate agents are usually familiar with homes on the MLS, but they can also be quite good when it involves finding off-market deals. To increase the chances of success and to stay ahead of the competition, you need to get an agent who knows the market you want to buy in. Agents are usually knowledgeable about properties that are to go on the market.
For buyers who have an interest in using this strategy, it’s a good idea to create a list of the best agents operating in the area you want to purchase in. You can reach them out by email or phone and ask them for off-market listings they may know. But before reaching out to any agent, ensure that you check their sites. Quite often, they may have pocket listings that are cataloged online.
Besides this, it’s important to remember that if a specific real estate agent fails to provide assistance with your current search, it doesn’t mean you cannot use them in the future. Therefore, you should leave your details with the agent so that they can contact you when there is a need.
Builders and contractors
In addition to these real estate agents, perhaps builders and contractors are also good people to have on your side if you’re looking to find great off-market deals. This is because local builders and contractors tend to know more about properties where the investor or homeowner may have abandoned the project mid-way.
This can happen due to inadequate financing to complete the construction. It’s an unfortunate situation for the seller, but it can be beneficial for the buyer ready to take over, complete the project, and get a profit at closing.
Builders and contractors are regularly in touch with other people in the real estate business. So if you are fortunate enough, they can direct you to pocket listings in the area. Therefore, make sure that you are entirely transparent during all the networking processes. You should also ensure that people know you are looking for off-market properties.
In this way, you can start to earn trust and even build the right respect you deserve from the other real estate experts in your market. Above all, make sure that you find as many builders and contractors as possible so that you can find several properties and choose the ones that appeal to you most.