You may have heard the term “off market sale” in regards to a home sale. Maybe your neighbor’s home sold off market, maybe you’re curious what it entails, or maybe it’s something you would like to do in the future. Here we will break down what exactly an off market sale is, the pros and cons, and how we successfully sold two homes in Trumbull recently off market!
Off market means your home is for sale, but it is not listed on MLS, the public database, and does not filter to Zillow and Realtor.com and other real estate websites. It is also known as a pocket listing or in-house listing (but not to be confused with FSBOs (For Sale By Owner)).
Also, don’t be confused by listings on Zillow where it says “off market” on the top left. There, it literally means this home is off the market – it is not for sale and hasn’t been listed or sold recently.
Here is what is required of an off market listing:
- Off market listings still require a Realtor (whereas FSBO’s do not). You will still have to pay commission, but that can be negotiated since your Realtor may not be spending as much time and money on marketing.
- If you’re interested in listing your home off market, you will still need to fill out listing paperwork and disclosures. This protects you and your Realtor, and disclosures will help once you receive offers.
- Our team will want to take professional photos and floor plans, which we can send to our database of Realtors and post on social media. However there will be no “for sale” sign on your front lawn, as there is little marketing we can do. We may list your home on our website if that is ok with you.
- You will have to sign a “withhold from MLS” form, which states you acknowledge your home will not be listed on the MLS and all real estate websites via IDX. Some of the points listed on this form include:
- a. The Listed Property will not be exposed to the widest possible number of potential buyers/lessees who are represented by the over 17,000 agents who participate in the MLS.
- b. By withholding the Listing from the MLS I/we may not receive the highest possible selling/lease price and the most favorable offer to purchase the Property.
- c. Because the Listing has been initially withheld from the MLS, it cannot be placed on the MLS until thirty (30) days after the date of the Listing Agreement. If the Listing is placed on the MLS after the thirty day period, the Listing’s time on market will be calculated based on the date of the Listing Agreement, not the date that the Listing is filed with the MLS.
- Listing a home off market really just affects how we can market your home, but offers will come in just the same as if your home was publicly listed, by another licensed Realtor, and the process is very similar to if your home was publicly listed. We will receive a binder or contract, and it could be a cash offer or with a mortgage, buyers may want to do an inspection, there may be a mortgage contingency, and a final-walkthrough, and everything in between. You will need to contact an attorney as well once you have an offer.
- After we sell your home off market, we put it on MLS as a “comp-only sale,” with pictures of your home, sale price and sale date, and that does show up on Zillow. It would be known as a private sale on the public tax records. According to SmartMLS, a “comp-only listing” means “a comp only listing is defined as a sale that is procured BEFORE the listing is/was entered in Connect. It is entered after the fact so the property can be used as a comp by other MLS users.”
Recently we sold 33 Vintage Road in Trumbull off market for $875,000! Sarah Pritchard, team leader and luxury properties specialist of the Pritchard Homes Team, mailed letters on behalf of her clients who were looking to buy a home in this neighborhood. While this home didn’t work out for her clients, the owners had been considering moving out of state and were seriously considering selling their home. Our letter came at the perfect time!
After a couple of meetings, discussions, walk throughs, and a home valuation and market analysis, the owners were open to selling their home off market, for a couple of reasons – they were not ready to sell and close immediately and weren’t interested in a rent back; the holidays were approaching, and showing or holding open houses during the holidays wasn’t ideal; they weren’t planning on making any upgrades, painting, or fixing anything major; plus knowing that it’s a private sale just appealed to them!
After a price was set and professional photos were taken, Sarah quickly got to work networking with other Trumbull Realtors, her sphere of influence, and potential buyers our team had who were looking for a home like this one. There were private showings and a lot of interest – after all, it was a picture-perfect home in a desirable Trumbull neighborhood! Our first offer didn’t take long to come in – a local Trumbull Realtor had buyers who were interested and provided an offer at our asking price and a longer closing date, so our clients had plenty of time to pack up and move. The process went smoothly after that! Documents were signed, inspections were booked, and our clients were one step closer to closing for a fabulous price of $875,000!
We had a similar experience selling 36 Firehouse Road in Trumbull last Spring, and that sold for $779,000!
Pros to selling your home off market
- Privacy – The process is more discreet and less intrusive. Your home will not be publicly listed, so Zillow snoopers or your neighbors won’t know your home is listed, unless you tell them! We find this is the most appealing part to sellers – the privacy aspect.
- Fewer Updates Needed Before Going Live – There is less need to stage, repaint, do repairs to appeal to a wide audience of buyers. We do recommend our sellers clean up their home as best they can
- Days on Market Will Not Be Listed – If your home were publicly listed, and sits on the market, there will be a ticker called Days on Market where the public can see how many days your home has been listed. If your home is not on the public market, no one will know how many days your home is listed.
- Serious Buyers – Showings will still happen, but there will be fewer of them, because there will just be fewer eyes on your home. We cannot host open houses, but we can privately show your home to prospective buyers and their agents. Some sellers like this aspect, as they can bypass a whole weekend of showings and random people tromping into your open house. It narrows the playing field…which can be a good or bad thing.
- Networking – We have a targeted approach to potential buyers from our wide network. Our goal is still the same – selling your home for top dollar in the quickest amount of time
Cons to selling your home off market
- Limited Exposure – Since your home won’t be listed on MLS (or anywhere – online or in print), there will be fewer eyes on your home, which means fewer potential buyers, which could mean fewer offers
- Fewer Potential Offers – Fewer offers and less buyer competition means offers may come in at or below your asking price. While we will still price your home competitively, knowing that since your home will not hit the public market, we expect offers to come in at asking or very close to it. We can also negotiate. We always tell our sellers – it only takes one offer!
- Feedback and Suggestions – There will be feedback from showings and potential buyers, but you really don’t need to do anything with this feedback. Whereas if you were listed publicly and everyone said your home was overpriced, or your home needed power washing, we would strongly recommend that (if we haven’t already!)
- Local Market Strategy – It may take longer to sell than if your home was listed on the public market. However, we haven’t had that issue with our two off market listings! The local market and inventory really plays a part here. Selling off market is best in a low inventory market (or a sellers market)
We’ve also helped buyers purchase homes off market, so we know both sides of the coin! Buyers like off market homes because of exclusivity, they don’t have to compete with other buyers, and it might seem like they got a deal. So there are also benefits for buyers!
We were the #1 real estate team in Trumbull in 2024! We know the Trumbull market, other top Realtors in town, what makes each neighborhood unique and desirable, the hot spots. Not only that, but we can share with our entire office of Realtors – hundreds more Realtors. Our sphere of influence helped us successfully sell these two homes off market. If you’re interested in seeing if selling your home off market will benefit you, we would love to chat and share more success stories. Feel free to contact Sarah Pritchard anytime at 203.414.5571 or [email protected]
Additionally, if you’re curious what your home is worth in the current market, check your home’s value at our home valuation website. You will receive an instant, free home valuation. Yes, free! There is no obligation and no fee, but we may follow up with you to see if we can help in any way!
