October 18, 2024

The Rise of Off-Market Properties in Philadelphia: What Buyers and Sellers Need to Know

Off-market properties are those that aren’t listed on the Multiple Listing Service (MLS). They are sold privately, often to select buyers, providing unique opportunities for both parties. In recent years, off-market listings have gained popularity in Philadelphia’s competitive neighborhoods like Rittenhouse Square, Fishtown, Northern Liberties, and Center City.

While exact statistics for Philadelphia's off-market sales aren’t readily available, industry estimates suggest they could represent 10-20% of the market. Off-market listings are becoming a key strategy for certain sellers and buyers, offering discretion, exclusivity, and a more targeted sales approach. However, they also come with limitations, such as reduced exposure.

Does off-market mean sold?

No, an off-market property does not necessarily mean it’s been sold. It simply means the property is not publicly listed on the MLS or other real estate platforms. Off-market properties can still be for sale but are often sold privately or through alternative channels, such as direct connections or a real estate agent’s network. Sellers might choose this option for privacy, to gauge buyer interest, or to avoid the pressure of a public sale.

Are Off-Market Properties Illegal?

Off-market properties are completely legal! Selling a property off-market means it isn’t listed on websites or the MLS (Multiple Listing Service). Many people choose to sell this way for different reasons, like wanting privacy, avoiding listing costs, or reaching specific buyers.

However, it’s important to follow local real estate laws and regulations. Sellers should still share necessary information about the property and follow fair housing laws. Plus, it’s essential to work with a trusted real estate agent who can guide you through the process and ensure everything is done right.

Are off-market listings and pocket listings the same thing?

While both off-market listings and pocket listings refer to properties not advertised on the MLS, there’s a difference. An off-market listing is any property for sale that isn’t listed on the MLS, often shared with select buyers or investors. This helps sellers maintain privacy and avoid the complexities of a public sale.

A pocket listing, on the other hand, is a specific type of off-market listing where a real estate agent has an exclusive agreement to sell the home. The agent markets the property privately, usually within their client base or internal networks, without listing it publicly on the MLS.

In short, all pocket listings are off-market, but not all off-market listings are pocket listings. The key distinction is that pocket listings involve an agent privately handling the sale.

The Pros and Cons of Selling Your Home Off-Market

Why Should You Sell Your Home Off-Market?

1. Privacy for Sellers
If you value discretion, listing your home off-market keeps your property details private. This can be perfect for high-profile individuals or those who prefer not to broadcast their sale to the neighborhood. Your home won’t be all over the internet, giving you more control over who sees it.

2. Exclusive Buyer Pool
If your property is in high demand, you may already have interested buyers through your real estate agent’s network. Off-market listings are often shared with select, pre-qualified buyers who are serious about making a purchase. These buyers will appreciate the exclusive access.

3. More Flexible Negotiations
Since off-market sales are more private, there’s room for more personalized negotiations. You can set terms that work in your favor, especially with buyers who are already looking for a property just like yours.

What Are the Cons of Selling Your Home Off-Market?

1. Limited Buyer Exposure
Off-market listings aren’t visible to the general public, which means fewer people know your home is for sale. This could result in a longer time to sell or missing out on potential buyers who never had the chance to see your property.

2. Potentially Lower Offers
With fewer buyers aware of your listing, there’s less competition. Buyers may feel less pressure to make competitive offers. In a public sale, multiple offers can drive up the price, but off-market, you may not get the full market value.

3. Slower Sale Process
Since the listing isn’t widely advertised, finding the right buyer may take longer. Without the broader exposure that comes from being on the MLS, you miss out on the wider marketing push, including open houses and online listings.

How to Find Off-Market Properties in Philadelphia?

One of the best ways to find off-market properties is to connect with trusted real estate agents. They often know about homes that are for sale but not publicly listed. Large brokerages like Keller Williams Empower (a partner of the Venture Philly Team) maintain lists of off-market properties that serious buyers can access.

However, in our experience, it’s usually not the off-market property that comes first, rather, it’s buyers who are interested in specific features in certain neighborhoods or condos within particular buildings. Many of these buyers have been searching for quite some time, but the properties they want are nowhere to be found.

This is where the real estate agent steps in. They can use their network to connect with wholesalers or reach out directly to homeowners by sending postcards or letters to targeted areas. Letting homeowners know you’re interested in buying can catch the attention of those who might be considering selling but haven’t listed their homes yet.

You might think that the prices for these off-market properties would be high, but that’s often not the case. Many homeowners have considered selling but feel overwhelmed by the thought of open houses and endless showings. When they receive a market-price offer from someone genuinely interested, they may be more willing to accept it.

“Struggling to find the perfect property? Our off-market list is updated weekly with exclusive opportunities! Contact us today to discover if we have exactly what you’re looking for!”

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