7 Strategies I Use to Find Off-Market Properties for Clients
In a market with limited inventory, off-market properties aren’t just for investors; they’re an excellent option for buyers seeking a primary residence. Unlike traditional listings, off-market homes allow buyers to avoid the usual rush and stress of open houses and bidding wars, creating a more private, streamlined purchasing experience. These properties can often be acquired at a favorable price since fewer buyers are aware of their availability, which can reduce competition and offer more negotiating power. For those looking to find their next home without the intensity of a high-demand market, exploring off-market options can be a great strategy.
What is an off-market property?
Let's start with a few definitions.
MLS - An acronym for the Multiple Listing Service. The MLS is a comprehensive database used by real estate agents and brokers to list, share, and find information about properties for sale. It’s a private, cooperative network where licensed professionals collaborate to provide detailed property data for buying, selling, and renting homes. The MLS feeds thousands of real estate websites and portals, including Zillow, Realtor.com, Homes.com and more.
On Market - All properties currently available for sale. The vast majority of these properties are in the MLS.
On Market, Off MLS - A smaller subset of all properties available for sale. These fall into a number of categories:
- For Sale By Owners (FSBOs) - Selling without an agent.
- "Pocket" Listings - These are listings an agent has that the owner, for various reasons, has decided to keep off the MLS, often for privacy reasons.
- New Construction - Builders and developers often bypass the MLS or just put a sample of their listings in the MLS.
Off Market - These are all the remaining properties. An owner might not be actively trying to sell, but situations change and they are open to an offer. Maybe they have been thinking about someday selling, but just haven't done anything about it. Catching these owners at just the right time is where deals are made.
Define Your Criteria
Before you start looking for something, it helps to know what you are looking for. The more laser focus you can get on your criteria, the better success you will have. Most clients I work with don’t have a crystal clear definition of what they are looking for and it takes sometime discussing their needs and wants. Plus, visiting some places that are currently on the market helps define what they want and what the don’t want. It is a process every buyer goes through. Some will gravitate to a certain area or building quicker than others.
I can’t begin an targeted off-market search for a client until there is some clarity. Without well-defined criteria, the search can be a big waste of time and money. A good range for the number of units to target is 25-200. Too few and the chance of success is lower; too many and it becomes too expensive.
Here are some examples of well-defined and ill-defined criteria:
Well Defined Criteria
- 2BR condo at the Odyssey on the eastern side with a monument view.
- 1BR condo at Clarendon1021, 3rd floor or higher.
- 2BR/2BA condo at Eastview or Westview with 1,000 sq ft or more.
- 2-3BR at Memorial Overlook with a view; 2BR+ at the Weslie, 3rd floor or higher.
- 1BR+Den or 2BR at the Atrium on the north side
Ill-defined or unclear criteria
- A condo under $300K in Arlington
- 2BR condo near a metro
- A ‘good’ deal anywhere.
Investor search vs Owner Occupied Search
Investors have used off market strategies for years. Real estate investors have specific criteria for their search, but their goals are different. Investors are looking for properties that meet their financial criteria first and foremost - almost any property can be a fit for the right price.
For a buyer that plans on living in the property, the primary goal for searching for an off market property is to find a property they want to live in. Financial criteria are still important, but are not main driver. There are some properties, no matter the price, a particular buyer would not want to live in.
7 Strategies to Find Off-Market Properties
To find off-market properties for my clients, I use employ a variety of strategies to uncover deals not listed on the MLS. Here are 7 of my effective methods:
- Networking with other Real Estate Agents - Many agents have access to properties not yet listed or know of owners interested in selling privately. For any condo building, there are usually a few agents that do the bulk of the business in a particular building. These are the agents 'in the know' that I contact first.
- Connecting with building managers - I actively seek and maintain relationships with building managers and front desk personnel for a number of reasons. These are definitely people in the know and might catch wind of an owner that might be thinking of moving.
- Utilizing Public Records & other tools - Checking local government sites for properties with tax liens, foreclosures, or probate filings can be a good source of motivated sellers. There are also a number of online tools to build out your target list of properties, including:
- Targeted Online Advertising - Targeted online advertising can be a powerful tool for real estate professionals looking to find off-market properties by reaching homeowners who may be interested in selling but haven’t listed publicly. Here are several methods:
Geotargeting and Geofencing – Real estate agents can use geotargeting to display ads to homeowners in specific neighborhoods or ZIP codes, encouraging them to consider selling their property. Geofencing takes this further by targeting ads to people when they’re within certain physical areas, such as homes near recently sold properties or areas of high demand.
Social Media Targeting – Platforms like Facebook allow for targeted ads based on demographics, life events (e.g., “Recently retired”), and interests, which can reach homeowners considering a sale. This approach enables agents to directly appeal to off-market sellers in specific demographics, encouraging contact without a formal listing.
Custom Audiences – By creating a custom audience of owners built from a list using tools in #3, agents can run ads just for this custom list. - Direct Mail Marketing - Create a targeted mail campaign for property owners in specific areas is a tried and true method. Mailing a series of postcards and/or letters to property owners is an effective way to reach potential sellers. The key is to have a series of pieces spaced out over time.
- Email Marketing - If an email list of owners can be created, this can be a quick and efficient way to reach out to owners.
- Direct Outreach - There is nothing like a well-timed phone call to reach an owner. This can be labor intensive at times, but worth it.
Finding off-market properties offers investors unique advantages and untapped opportunities in real estate. By leveraging the strategies above, you can uncover hidden properties, secure exclusive deals, and grow your portfolio with less competition.
Frequently Asked Questions
Why are you giving away your game plan?
- First, the strategies I outlined have been used by real estate investors for years. So, it is not a big secret I’m giving away.
- Second, doing an off market search is time consuming and costly. The vast majority of real estate agents won’t make the investment of time or money.
- Third, the tools needed to run a successful search campaign have a certain learning curve that most agents don’t have the time for. The tools are not free either.
- Fourth, creating the targeted list takes a specialized knowledge of the market. Get the wrong audience or the size wrong, and it can be a very costly and unproductive use of resources.
- Fifth, for the average non-agent, this is way beyond their scope. Trying to do it one time is just not cost effective or worth the time needed to learn the process.
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