About 25%-35% of properties sold in Sydney are sold off market

To a lot of people, this is confusing. Why would someone sell off market?

The assumption is that surely going to market attracts a better sale price. While every owner has a price that they wouldn't sell at, sometimes there is something more important to an owner than an extra 5-10% on a sale price.

The reasons people are selling off market include:

• Certainty; where an owner has already committed to purchase elsewhere and needs to sell a property to allow for the purchase to proceed, a fast and certain sale off market is often the most important factor.

• Financial opportunity; this is where an owner needs to free up cash for other financial commitments e.g. A business opportunity, a renovation on another property they own. The owner may not be interested in spending money on a full sales campaign but if the right offer comes along they will take it.

• Inconvenience; often people with young children tend to avoid the inconvenience of a four week campaign where there house needs to be kept spotless and available to show prospective buyers at the drop of a hat.

• Tenants; where a property is currently tenanted and presents in a poor or average condition, then often an owner will list a property off market because they cannot control the presentation of the property. They may sell off market, or give the tenant notice to vacate with a plan to list the property when it is vacant if it doesn't sell off market.

• Privacy; this is common where people don't want the neighbourhood knowing they are selling, and/or often occurs where there has been a recent family breakdown, and the owner is keen to protect their privacy. Also common if the owner is well known and doesn't want sticky beaks coming through their property.

• Problems; if a house has been modified without DA approval, and/or an apartment with significant strata concerns then often these sit off market as the owner waits for feedback on how potential buyers respond to the specific problems.

The other considerations that factor in to properties selling off market are:

• Marketing; the owner does not need to commit to paid marketing and/or styled furniture at the off market stage. While proportionately this cost is not significant, it is a cost that the owner pays up front and there is always a risk that they spend this money and then do not end up selling.

• Agents; in a low stock environment selling agents are keen to get vendors signed up by removing any barriers. This includes a sales spin of "just test it off market with no commitment to sell". In this scenario, owners may be hesitant to sell but they list off market as a low risk strategy to gain buyer feedback.

Off market listings can present a great opportunity as there are very valid reasons why properties are off market.

At times though, properties sometimes sit off market because the owner wants an unrealistic price.

As always, it is about finding the right property for you and buying it at the right price.