Joe Fairless, joefairless.com & @joefairless, has an interesting article in the Forbes Real Estate Council, Three Ways An Owner Benefits From Selling Their Apartment Off-Market ,about the benefits to buyers and sellers of working with off-market deals. (Joe also has a highly valuable real estate podcast Invest With Joe)
For Sellers of Apartment Buildings
Below are 2 highlights from his article that really stood out as to why buyers and sellers can both benefit from off-market deals.
By selling off-market, there are no open houses or property tours scheduled with several interested parties.
There aren’t multiple question and answer sessions with prospective buyers. Random buyers and their contractors aren’t poking around the property and disturbing the tenants.
And, there are no rumors floating around about the apartment community being sold to an unknown party, which could negatively affect resident and/or vendor relationships. Instead, the owner has to deal with one buyer, which eliminates much of the hassle of listing on-market.
For Buyers of Apartment Buildings
From the buyer’s perspective, there are three ways that they will benefit by purchasing an off-market opportunity.
First, they will save money by avoiding a bidding war and the broker’s interest in finding the highest paying buyer who will close.
Second, they have more opportunities for creative financing since they’re working directly with the owner and can identify their pain points and goals for selling.
Finally, the overall closing process is faster with the broker out of the equation.