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How to snap up your dream house before it hits the market

Mortgage interest rates may rise early next year, one analyst warns. Photo: Supplied.

Mortgage interest rates may rise early next year, one analyst warns. Photo: Supplied.

One of the most dispiriting aspects of falling in love with a property is competing with others to own it.

Most a-grade properties have no shortage of people wanting to call them home, and a buyer will often need to slug it out with the competition to get their hands on the front-door key.

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But what if there was a way to buy a property that isn’t listed openly or to view one before it hits the open market? Well, there is, and in the real estate game they are the much sought after gems known as off-market properties.

real estate

Why wait? Photo: Shutterstock

Why off-market?

Sometimes the seller is keen to seal a deal before it is listed because they want to spare themselves the stress of going to auction, while other times a landlord has expressed an interest to an agent in selling their investment property but does not want to foot the advertising bill.

In rare cases, the vendors are selling off-market because they have defaulted on their mortgage and don’t want their neighbours to know.

“This tends to happen more in the upmarket areas where people are very image conscious; we saw this a lot in the GFC,” says founder of wHeregroup property investing Todd Hunter.

Mr Hunter estimates that 30 per cent of the properties he buys for investors, largely in the Brisbane market, are off-market deals.

Victorian State Manager for National Property Buyers, Antony Bucello, says he receives around six off-market properties on average in his inbox every week.

“If it is a very good property it will go very quickly so I try and see the property that same day,” says Mr Bucello.

“You have to move quickly.”

The key is finding out about them.

Hunt them out

Using a buyer’s agent is a good way to gain access to these off-market properties, but for those who want to go it alone, the trick is in building relationships with agents.

real estate agent house home property

Trust is a must. Photo: Shutterstock

“Make it one of your goals to find the key people in your (buying) area and build a relationship with them,” says Mr Bucello.

“Find the agent who is experienced and has access to off-market properties because the reality is a 22-year-old agent won’t have the same access as someone who has been in the game for a while.”

Mr Hunter recommends buyers spend time attending open for inspections, even if they are not interested in that specific property.

“Talk to the main agents in your area, and show them you are a buyer who has all their ducks lined up and is ready to buy,” he says.

“Tell them you are flexible with looking at properties during work hours, that you have your finance ready and you are able to move quickly.”

“Mention you would be interested in viewing properties before they come on the market.”

Play it safe

Just because you have access to a property before it enters the market, doesn’t necessarily mean you should buy it.

“Off-market properties are no different from other properties in that on average we only recommend about 10 per cent of the ones we inspect,” cautions Mr Bucello.

Mr Hunter also warns buyers not to let their due diligence slide in the rush to snap up a property.

“You need to make sure you still get your building and pest inspections done,” he says.

A potential downside of buying off-market properties is they are not suited to buyers who like to take their time.

“You have to be one of those people who can make a decision pretty quickly whether you like a property or not,” Mr Hunter says.

“And then you have to be ready to move on it.”

Johanna Leggatt is a Melbourne-based freelance journalist. Follow her on Twitter at @johannaleggatt

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