The off-market sales are an attractive option for big shots like John above who prefer to protect their privacy, blah, blah. What about the regular folk? Is there a bulk of sales happening off-market?
How many off-market sales are there in the general marketplace?
Lance has been doing a great job documenting the natonal real estate market. He found a company that did a study and they said that there have been 1,200,000 off-market sales in the county this year, including 60,000+ in California:
https://www.resiclubanalytics.com/p/lot-home-sales-happening-offmarketjust-look-map
Of course, realtors can’t brag enough about their off-market conquests, and getting tipped to their pocket listings will be one of the primary pitches you will be hearing from aggressive agents at open houses. Braggadocio like this:
I checked the most recent 196 single-family sales in Encinitas, Rancho Santa Fe, and Carmel Valley in all price ranges. I reviewed the tax records and the MLS and found 19 homes that were sold off-market.
The 19 off-market sales break down like this:
10 were entered onto the MLS with zero days on market.
4 agents sold their own home off-market (?).
4 were flippers (2 buys and 2 sells)
One agent bought an expired listing off-market.
People are going to sell their home off-market for whatever reason. But realtors have a fiduciary duty to their sellers, so there must have been special circumstances with the ten sales (like I had earlier this year when I did one).
If there were 25% or more of the total sales being sold off-market, it would be a big deal – and it might come to that some day. But with only ten (5%) of the recent sales being sold off-market by realtors, it’s a nothing-burger for now.
Hi Jim,
How can a buyer without an agent find off-market listings or fixers?
I’ve seen many instances where investors buy fixers off-market for at most $1-1.2 million, invest up to $100,000 in renovations, and then list them for at least $1.5-1.7 million.
All you have to do is spend the same money as they do.
Those investors spend $20,000 to $50,000 per month on mailers to old people. When the oldtimers die, the kids come to town and grab the latest mailer to call for a quick sale!
Mid 60s we are the youngsters in this ghetto. Thing is we’ve seen vacant homes for decades as dad dies, mom goes to assisted living and is still with it and adamant that the “family” home is not sold. And why should it? $40 electricity, $40 water/sewer, $120 landscaper, $200 insurance for a $2m house that it appreciating $5000/month.
And oh how tired I am of the cold calls. I have discovered a partial solution. When they call I tell them that I might have been interested but they are using a fake phone number and I won’t deal with liars.
I have discovered a partial solution.
Tell them you are a realtor and they will hang up immediately. Not that you know an agent – but you are one.
Realtors® are allowed to lie? Like lawyers? Like police officers?
Well yeah. And you’re not a realtor so you’re free to say whatever you want to a solicitor!
I ask for their date of birth and social security number and then they hang up.