Off-Market transactions are more common than you might expect. In fact, the benefits of this type of transaction makes them the preferred method of selling commercial real estate in many cases.
What is an Off-Market Real Estate Transaction?
An off-market transaction is a transaction between a buyer and seller that never hits the real estate market. These types of transactions take place without a listing agreement and generally come about one of two ways.
- An organization is looking for a retail, office, industrial or other type of commercial property and works with a trusted commercial real estate agent to identify opportunities and approach owners of these properties.
- A property owner wants to quietly sell a property rather than putting the property on the open market.
An experienced commercial real estate agent can assist both buyer and seller reach agreement on key deal terms prior to the preparation of a contract.
Red Flags to Look Out For
Have you ever received a mass email with an “exclusive off-market listing available?” It reads like an oxymoron because it is. A true off-market listing is not marketed or widely advertised. If a property is truly off-market, a real estate agent or broker that you have a relationship with will reach out to you personally as a valued client to discuss the matter.
They will not send the listing to a large email list or put it on a mass-marketed website. The general public should never know that the property is available. If they do, the agency is doing a poor job of representing the seller or the property was never truly an off-market property to begin with.
In addition, if a real estate agent that your organization has never worked with before reaches out to you out of the blue with a “too good to be true” off-market option, it probably is too good to be true and likely to be a waste of everyone’s time.
Benefits of Off Market Real Estate Transactions
Most successful commercial real estate sales require a win-win outcome and off-market deals often allow that to happen quietly and in a controlled manner.
Additionally, they allow buyers and sellers to proactively find the right counterpart rather than casting out a line to see what they can catch.
Other benefits of Off-Market Transaction:
-Less disruption and lead time required
-Buyers are more likely to be serious about completing the sale
The moral of the story is – never be afraid to inquire about the availability of a property. Everything is for sale under the right terms. You can often find opportunities that others may have missed.
An experienced commercial real estate professional can often guide both buyer and seller through the intricacies of an off-market transaction so that everyone is satisfied in the end.
Questions about off-market commercial real estate transactions? Contact Gary S. Olschansky at 443.921.9348 today.
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