Should I Sell My Home Off-Market? Six Part Series: Part Six
You’ve heard the stories about how crazy the Maine real estate market is right now: Downeast calls it the “wild, wild west” where cash offers of $100,000 to $150,000 over asking price are commonplace.
The Maine Sun Journal recently reported that mobile homes are selling fast and for crazy terms and prices — one in Auburn received 17 offers up to $47,000 over asking price.
Getting a home sold and sold quickly in this market is not hard. Anyone can sell a home right now. The goal of selling a home should be more than simply to sell or sell quickly. Instead, the goal is to take advantage of the very best sellers’ market in history to get the best price - and with as little hassle as possible.
Many sellers are thinking that because the market is so hot, that they can get a good price in an off-market sale.
Depending on your circumstances, selling off-market can be a great idea - unfortunately, it can also leave tens of thousands of dollars on the table.
Is selling a home off-market a good idea? It depends.
For some sellers, the prospect of an open house can feel overwhelming - especially with COVID-19 still at issue. Maybe you have privacy concerns or would rather avoid the hassle to deep clean, move furniture or make repairs. All those can be good reasons to sell off-market.
Others who sell off-market don’t want to deal with real estate agents, multiple buyer negotiations - or think that selling directly to a friend or family member is a better option. Sometimes it is - but often there are risks you may not have considered.
When Selling Off-Market Is The Right Choice
Holidays and Snowy Days in Maine. Selling off-market also makes a lot of sense during the holidays, during the winter - or maybe even in the mid-summer in Maine. This is a strategy we can employ for seller clients with great success.
Typically, the number of buyers goes down from November through January, as many people are focused on holidays or traveling. Additionally, Maine winter snows through March often present a challenge for moving. Families gather for 4th of July parties in the beautiful days of a Maine summer. There are less homes on the market as well - for all the same reasons.
MLS Listings: A Spotty History. Sometimes a move in December becomes necessary - i.e. for a job transfer. Selling off-market in these circumstances can be a good option, especially if you can “test” the market without risking it being listed on the MLS and not selling. If a property is listed on the MLS and does not sell, or a sale falls through, it is recorded for anyone looking at that property in the future (try looking up any address on realtor.com and you will see all historical listing information is readily available). Listing history can haunt a property. Buyers will see that it was listed at a certain price and wonder why it did not sell, why the price dropped, why a sale fell through, or why the property was ultimately pulled off the market. The question in a buyer’s head will be, “what is wrong with this property?” They will then commence to search through the pictures and online data in a quest for identifying problems with the property; not the best scenario to motivate a buyer.
If you want to sell off-market and have a “quiet sale,” Balsam can help you. Whether you go on the MLS or not, though, the goal should still be to get you the highest possible profit and the best contract terms for your home. When we work together to sell your home off-market, I can tap into all the off-market resources we have available, to help you still get the most possible for your home, while selling it privately.
Thus, there are some good reasons to sell off-market but only under a specific set of circumstances.
When Putting Your Home On The Market is the Better Choice
If getting the highest price possible is your goal then putting your home on the market is truly the best option.
More Exposure Means Market Price. Selling your home on the MLS, and marketing it publicly, means giving it the greatest exposure. The greater exposure, the more demand you can create. You will know that you have availed yourself of all the tools to get competing offers and that your home is selling for true market value.
The real estate market operates like any other market. Increased demand and low supply equals higher market prices - which is what is happening right now across Maine.
Back-up Offers. Also, consider this: putting a home on the market allows you to have back-up buyers waiting in the wings if anything were to go wrong with the buyer under contract (and it does happen). While under contract, we can continue to show the property to prospective buyers - which not only allows for back-up offers to be put in place - but keeps the current buyer motivated through closing (knowing that you have competing buyers poised).
Better Terms, Less Contingencies. Typically, on-market home sales also have better terms—meaning sellers can decide whether they want a quick or slower closing date, or the ability to stay in their home longer (to find a new home for instance). More offers also means the opportunity for less contingencies - or an offer with no contingencies - not even a home inspection. More offers also could mean an all-cash offer!
Friends and Family Sale Considerations. Also, remember, selling to a friend or family member (or even a business associate) means that you may feel pressure to sell for a discount, make the terms more friendly, offer assistance if they have difficulty coming up with closing costs - or if the house has problems after you sell it - are you going to feel obligated to fix issues to avoid upsetting a family member or friend? A leak in the plumbing after six months? What if the roof needs replacing after three years? Consider the long term sense of responsibility or obligations this may create before selling off market to a person you know well.
What’s Right For You?
Selling your home on the market means exposing it to the most homebuyers possible. The more buyers who see your home, the greater the demand. This gives you the best possible chance to achieve the highest price and best terms.
But, for some sellers, getting the most money for their home isn’t the most important part of selling, sometimes privacy or ease and simplicity holds more value. Getting a price that is “acceptable” may be enough - you may be willing to give up some of the selling price to sell quietly or during the off-season - but good research and guidance from a real estate professional will help you know what you may be giving up in cash price or terms to go off-market.
Wondering what’s best for you? The answer depends on your particular circumstance, personal goals and current situation.
At Balsam, we are ready to talk about your individual needs and address any concerns. For example, if you are overwhelmed with thinking about what needs to be done to get your home in show-shape, we can handle that for you. Our favorite client is the one that hands us their keys and leaves the rest to us. We love transforming a space quickly and as efficiently as possible to make it look its best.. Home prep and staging is our favorite part of the job and not a responsibility you need to take on yourself. We can handle all the details for you.
Next Steps
Whether you want to sell off-market or on the market, we’d love to help you.
Email us if you have been thinking about selling your home - we can talk about whether it’s best to sell off-market or on-market and how to be sure you are getting the very most profit possible with the least hassle.