What to Consider Before Selling Off-Market
Here’s what you need to know before selling your home off-market.
Should you sell your home off-market? This is a question my team and I always get asked, but it’s coming up frequently due to current market conditions. There’s no ‘yes’ or ‘no’ answer to it—it all depends on your situations and objectives. That said, there are a few costs you need to take into consideration before making a decision.
The first is the commission. If you’re selling off-market and don’t have to pay any commission, that could lead to significant savings. However, if the buyer expects to get a lower price because you’re not paying a commission, the whole transaction could be a wash.
Also, even if you look at comparable sales and know what some of your neighbors’ homes sold for last year, there’s no way to test what buyers are willing to pay for your home. That’s one of the benefits of the free market—you can actually tell what people are willing to pay for your home. Thus, you could lose a lot of money by selling off-market.
"I always recommend talking to an unbiased agent who will give you specific information about your market and offer guidance on what your home might sell for."
Third, consider the home inspection costs. If you accept an offer off-market and it has the traditional contingencies (home inspection contingency, appraisal contingency, etc.), the home inspection repairs can cost you money. If the appraisal comes in below the sale price the buyer agreed to, that will cost you too. At that stage of the process, you do have the option not to sell, but if you've already packed up and moved out, it might be a little late in the game to make that choice.
This is why I always recommend talking to an unbiased agent who will give you specific information about your market and offer guidance on what your home might sell for. That’s the best way to ensure you’re doing what’s in your best interest and you accomplish your goals.
As always, if you have questions about this or any real estate topic, don’t hesitate to reach out to me. I’m happy to help.