Nearly all home buyers start their home search online searching sites such as Zillow or Realtor.com—but did you know that these search engines don’t return all of the available homes for sale? You may need to consider exclusive off-market homes.
It’s true. There are many more homes available than the ones you see online, so if you haven’t found your perfect home yet maybe its time to get creative and look where other buyers may not be looking.
Here is how a home is typically sold: homes listed for sale, or listings, are stored in a database called an MLS (Multiple Listing Service). An MLS covers a geographical region and shows all the homes listed for sale—keyword listed. If a seller doesn’t want to list their home due to privacy concerns or another reason, or if they haven’t listed it yet, it won’t show up in the MLS—and therefore won’t show up on common real estate search sites.
A significant number of home sales happen before a home ever hits the market, which means if you’re relying on Zillow, you’re missing out. Here’s what to try instead:
Hire a Real Estate Agent
We are not being biased! Hiring a real estate agent is the best, simplest, and safest way to get access to off-market listings. Here’s why:
An Expansive Network
Great real estate agents maintain good relationships with their past and present clients and other realtors, and we’re often the first to know when homes are coming up for sale. Sometimes a home seller may even interview numerous realtors about the potential of listing their home too. Once your real estate agent has info about an upcoming listing that matches your must-have list, you might have the opportunity to snap it up before it goes on the market or be in a position to make an offer ASAP.
Other Ways to Find Off-Market Homes
Direct Mail
Direct mail is a method in which you send a letter directly to someone whose home you’re interested in purchasing. Wish you could buy that perfect house you drive by when you are in the area? Send a letter to the owner to find out if they’re interested in selling. Also, your realtor can send letters on your behalf too representing you and can have initial conversations with the seller.
There’s not a lot of risk in doing this, but one thing to keep in mind is what happens if the owner says “yes.” Typically a real estate agent will guide you through the process of submitting a formal offer with the right paperwork and legal language, getting a home inspection, appraisal, title check, and more. If you’re flying solo, you’ll have to do all of that on your own—and doing it wrong can result in costly mistakes.
Real Estate Auctions
A real estate auction is a live event in which properties are sold at auction. There are two common types: foreclosure auctions and property tax auctions. However, there can be risks associated with this such as reduced opportunities for inspections and minimum bid amounts that maybe higher then what the fair market value may be. Also, there will typically be a stock of legal paperwork to complete and you may want a professional at your side to help you avoid costly errors.
Word of Mouth
Word of mouth is another option of finding a home to purchase and depends largely on your social network and being in the right place at the right time. It’s never a bad idea to let your circle of friends and family know that you’re looking to buy and ask them to keep an ear out for anyone thinking about selling in your price range.
