Why selling off-market in Qld could cost you $30,000+

Queensland vendors risk losing an average of $30,000 by selling off-market, with a leading auctioneer revealing that sellers who knocked back off-market offers did better on the open market.

Queensland vendors risk losing out on an average of $30,000 by selling their homes off-market, with a leading auctioneer revealing that sellers who knocked back off-market offers did better on the open market.

PropTrack’s Off-Market Sales Performance report shows that houses, on average, sell for 4.3 per cent less off-market nationally.

In Brisbane, that number improves slightly, but houses are still sold at prices 3.6 per cent lower than those achieved for an on-market property, while in regional Queensland it is 4.2 per cent.

This Redbank Plains house was sold off-market for $615,000

NSW sellers are the worst off in the nation, with regional properties selling for 10.3 per cent less than their on-market counterparts, while in Sydney it is 4.3 per cent lower, or around $60,000.

PropTrack senior economist and report author Paul Ryan said that selling off-market could come at a significant cost to sellers.

“While some sellers might try to save money by not advertising online, this analysis shows the potential earnings lost in the final sale price far outweighs the initial cost of advertising,” Mr Ryan said.

“These results are based on sales in 2022 when home price growth slowed in many regions,

reflecting the potential costs of selling off-market in current conditions, where strong buyer

demand and limited supply is pushing prices up in most markets.”

PropTrack economist and Home Value Index report author Paul Ryan

In today’s market, with home prices recovering, homeowners are at risk of selling for tens of thousands of dollars less off-market, which in Brisbane equates to about $30,000, the analysis revealed.

“Off-market sales in locations above the national median price of around $725,000

performed the worst.,” the report said.

“In these areas, the prices of off-market sales were more than five per cent lower than those listed on realestate.com.au.

“The average loss from selling off-market is often tens of thousands of dollars, far more than typical listing costs.”

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This Freshwater house in Cairns was sold off market for $905,000

The exact cost of selling a house varies by state.

Excluding conveyancing fees, sellers can expect to pay agents commission (on average 2.7% in Queensland), marketing costs (between $1000 and $10,000 depending on the approach), home staging if required (basic package starts around $2500) and auctioneer fees if required (between $400 and $1000).

Ray White New Farm principal Matt Lancashire recently ran an off-market campaign for a property in Teneriffe.

“After dealing with a number of interested buyers, there was a lack of urgency with purchasers,” he saod.

“.After listing online and undertaking a digital campaign there was a huge uplift in enquiries, with a number of interstate buyers surfacing.”

This Helensvale house was sold off market for $1.56m

Apollo Auctions director and auctioneer Justin Nickerson said that while it was difficult to quantify the potential losses of selling off-market, there were plenty of examples of vendors who had knocked back off-market offers and got a better result on the open market.

“Really you are relying on two ingredients to get the best possible price - an emotional buyer and competition,” he said.

“With an off-market sale, you really only get the emotional buyer and that might work in some cases, especially those aspirational properties, but for most properties you need that competition.”

Justin Nickerson speaking at AREC 2023

Place Bulimba agent Sarah Hackett said selling off-market was like trying to sell a secret.

“You never really know if you are getting the top price,” she said.

Ms Hackett, who is one of Brisbane’s top selling agents, said it could work if the right buyer and the right property were matched up, adding that often those who did sell off-market did so for privacy reasons.

“But it is a different market now,” she said. “Back in 2021 we averaged 13 buyers per auction, then it was seven last year and now its two.

“The problem with selling off-market is that you might get one offer, but you won’t know if it is the best offer as there might be someone willing to pay more.

“Most properties need exposure now, and a good marketing campaign can get the best results.”

Sarah Hackett

Ms Hackett said there were still plenty of buyers around, but they were “picky” due to uncertainty and tougher lending conditions.

“We are having conversations with vendors about 2021 versus now, and if they aren’t willing to have those conversations, they won’t sell,” she said.

“We have a riverfront property coming to market and an offer has already been received, but the owners want to give it its best shot.”