4 tips to uncovering off-market properties
An industry professional has revealed four insider tips for investors looking to stay ahead of the real estate game by securing off-market properties.
InvestorKit’s founder and head of research, Arjun Paliwal, said that some investors are missing out on off-market properties or real estate assets that have not been publicly advertised or listed on the market.
Mr Paliwal explained that buying a property off-market offers several advantages, such as facing less competition from other buyers, having more opportunities for negotiation, and having more freedom to conduct inspection checks.
“Once a good property is listed on the market, dozens of investors jump on the bidding. This increases the prices and cuts down the opportunity for negotiation,” he continued.
If you want to find an off-market property and be ahead of the competition, Mr Paliwal enumerated the four ways to do it:
1. Expand your network
Mr Paliwal stated that talking to more people in the industry is a simple way to have off-market properties on your radar.
“The rule of thumb is if you talk to 10 to 15 people related to real estate (real estate agents, mortgage brokers or lawyers), you'll find one or two properties that check all the boxes for you,” he explained.
2. Build relationships with top-performing real estate agents.
After identifying the top real estate agents you want to connect with, the expert recommended building a solid business relationship with them — with a personal touch.
“[Send] them a card on Christmas, Halloween, their birthday and their anniversary. Once you build a good relationship with them, you’ll easily know about the good off-market deals.”
3. Be responsive to prospective off-market properties
If a real estate agent is showing you a certain off-market property, Mr Paliwal explained that there’s a chance they are showing the same property to many other prospective buyers.
With this, he urged investors to be proactive when responding.
“If you take two to three days to reply, you’ll always miss out on great deals. Even if you’re not interested in the property they’re showing you, let them know the reason you’re not interested,” he stated.
4. Work with a buyer’s agent
Mr Paliwal acknowledged that uncovering off-market properties can take time and it won’t be an easy undertaking for investors or buyers who are already “stretched thin” by dealing with their job, business or family matters.
In this scenario, the expert said that a buyer’s agent can be your ticket to an off-market property.
Mr Paliwal explained that having a professional in your corner can help you locate profitable off-market investment properties that meet your requirements and conduct thorough research and analysis.
Additionally, a buyer’s agent can help negotiate deals with sellers on your behalf and complete the entire process within 90 days, allowing you to focus on your other priorities.
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