Off-market property sales ‘can cost sellers thousands’

The rise in off-market sales during the pandemic could cause sellers to lose out as potential buyers are left on the sidelines.

Uncertainty around lockdowns and the extent of economic impacts on buyers has caused many sellers to try their luck quietly rather than advertise. Picture: Matt Thompson

The rise in off-market sales during the pandemic could cause sellers to miss out on thousands of dollars as potential buyers are left on the sidelines, online classifieds site Realestate.com.au warns.

Uncertainty around lockdowns and the extent of economic impacts on buyers has caused many sellers, particularly at the top end of the Sydney and Melbourne markets, to try their luck quietly rather than advertise.

But with the start of September heralding the spring selling season, traditionally the busiest time of year for listings, REA executive manager of consumer marketing Sarah Myers says vendors may be missing out on possible buyers after real­estate.com.au recorded an all-time audience high in July of 12 million people.

“When property demand can be really high, vendors can be tempted to sell their property off market,” Ms Meyers said. REA is part-owned by News Corp, publisher of The Australian.

“We really wanted to create an education campaign to make sellers aware of the potential risks of not taking their property to market and reaching the biggest pool of potential buyers.”

Sydney agent Georgia Cleary, director of BradfieldCleary, said that while the phrase “off-market” had become a buzzword among buyers and sellers, there were greater downside risks in the method.

Ms Cleary said off-market was “a foolish way to sell in some cases”, adding: “It is not something we recommend because we don’t think you get the best price.”

Head of sales at boutique Sydney agency BresicWhitney, Thomas McGlynn, said off market had become a lot more prevalent in the marketplace as agents became more localised to a specific location, which allowed sellers to test interest.