Where are all the properties? At times it seems like there is not much on the market. And if you are looking in the $7 million dollar range and above, you would be right…for ‘on’ market, visible properties. Chances are, if you are in this market, you will be called by your local sales agents encouraging you to list before you buy…quietly.
While there is and always will be, an off market segment of the prestige market where both buyers and sellers value discretion and privacy, the current low ‘on’ market stock levels in this segment have meant agents are working diligently with their buyers to list their homes off market, in order to increase stock levels.
Buyers more often than not, like to know where they are going before they sell and consequently wait for the right home to come along before putting theirs on the market. The problem with this is, that it upsets the supply and demand balance.
Low supply can result in buyers paying over the odds for a property through competition or lack of choice and desperation. Of course, the latter two reasons are simply not educated reasons to acquire a property.
While we are heading into the Winter months where traditionally those vendors with beautiful gardens will wait for Spring to show their gardens in full bloom, the market does not stop. Buyers are still looking to acquire homes.
The other factor is the growing population of retirees holding on to their large homes for longer so they can assist in the rearing of grandchildren. This is has been affecting the upscaler market (those aspiring to buy a bigger home for an expanding family and lifestyle) being able to access what traditionally and historically used to happen every year. A portion of the retirees selling their big homes to move into their luxury lock up and go homes. When they don’t do this, it again upsets the natural flow of properties onto the market.
The result is the growing popularity of secret sales that are going on throughout Melbourne all year round and it seems more and more sellers are preferring to use off market options. So how do you get access to these properties to broaden the pool of choice?
It’s all about relationships. You will need to contact all of the key selling agents in the areas you want to buy in or a professional buyers advocate and give them a brief of what you are looking for. Put simply, you need to be on their radar and on the ‘off market list’. Be willing to sign confidentiality agreements or show your capacity to buy the home before you can even get in the door.