By Erica Gardner  |  Category: Blog

The Benefits of Off Market Properties

Real estate is booming in cities all over the country, making house flipping an increasingly popular money-making option for those determined enough to do so. If you’re looking for a property to flip, you may first want to consider the benefits of an off market property. Also called pocket listings, these properties are not publicly advertised on the MLS and are becoming more and more popular for savvy buyers wanting to flip.

The Competitive Edge of Buying an Off Market Property

When you purchase an off market property, you’re competing with fewer prospective buyers than if you were to purchase a property on the MLS. You’re less likely to enter into a bidding war, making this option more appealing. You can spend time doing your own due diligence and determining whether this is the right property for you. Many of those selling off market properties simply want an easy, streamlined transaction. The smoother you can make the process for them, the more likely they will be to take you up on your offer.

Purchasing Property at a Discount

Smart buyers know that buying low on the initial purchase is where the money is made, more so than in trying to negotiate a higher selling price once the property is completely renovated. The situations that most sellers find themselves in when trying to release their property with an off market approach can be anywhere from a divorce, foreclosure, foundation issues, water damage and the like. These situations create a sense of urgency for the seller and gives buyers the opportunity to negotiate the price to maximize the potential returns on the property.

Hidden Gems

Not all off market properties require an extensive amount of work. Sometimes you can find hidden gems that require a lot less rehab work, thus speeding up the time it takes for the property to become market-ready and alleviating a lot of the associated holding costs. The less money buyers spend on repairs and holding costs, the higher return the property will yield.

Off market properties can be a great way to find the right property that fits your needs. Contact a NetWorth Specialist today to learn more about how you can unlock the potential of an off market property in your next flip.