The home sale choice that could cost you thousands: Pros and cons of selling off-market

New research reveals the average sum that Hobart homeowners miss out on after making this property sale choice.

Hobart home sellers may miss out on thousands from the sale of their house when selling off-market. Picture: Eddie Safarik

WHEN selling their most valuable asset, Hobart homeowners could cost themselves tens of thousands by making just one mistake.

Released on Tuesday, the Off-Market Sales Performance report by PropTrack – realestate.com.au’s research arm – has revealed Hobart property sellers in 2019 and 2020 received an average of 2.1 per cent less when selling off-market.

At Hobart’s current median house price of $630,000, that would be a $13,230 loss. On a $1m home, that -2.1 per cent equates to $21,000.

Raine & Horne Eastern Shore director Matt Carne said even when demand is high, he would not suggest to a client that they sell off-market.

“It can be difficult to quantify exactly what the price differential might be between on-market versus off-market, but we always favour going to open market, particularly in these buoyant times,” he said.

“It is important to take a property to market with professional photos, a floor plan, some drone photography and perhaps a video. That way you can expose it to the widest possible audience.”

Raine & Horne Eastern Shore director Matt Carne.

PropTrack economist Paul Ryan said creating competition was the best way for a property seller to achieve the highest possible sale price.

However, some people may choose to sell off-market for a range of reasons, such as testing interest in a property without incurring fees, he said.

“While some sellers might try to save money by not advertising, the potential lost earnings from a final sale price are estimated to far outweigh the average initial cost of advertising,” Mr Ryan said.

PropTrack economist Paul Ryan.

Property owners will have varied points of view when it comes to the up and downsides of any potential sale.

Mr Carne said the downside of an off-market sale was that a seller was limited to buyers their agent has on their database.

“And you are not subjecting those buyers to market competition,” he said.

“The upside for some people is the discretion that it can offer.

“It can offer a saving on commission if there is less work for the agent to do, and there are those that are genuinely daunted by the whole process of marketing a property or open homes.”

Mr Carne suspects that a hot market such as Hobart’s may lead to more off-market transactions due to the sheer number of buyers currently hunting for a property.

“Is that the best thing for the client? In general terms I would favour going to market to test what buyers might be willing to pay under competition,” he said.