Secret off-market sales

I read somewhere that "professional investors don't simply find properties by looking through the weekend or local paper, or on internet sites like realestate.com.au, domain.com.au or realestateview.com.au."

Apart from these above standard ways, how else are you supposed to source residential properties to buy?

Some other ways:

(1) Looking at individual real estate agent websites.
(2) Speaking and maintaining contact with real estate agents, who could tell you about properties coming up for sale before they get advertised, or, properties that are not having a formal advertising campaign.
(3) Using a Neil Jenman real estate agency.
(4) Looking for sales by owners directly or privately without agents, in newspapers or on the internet.
(5) Posting a message on the realestateview.com.au bulletin board.
(6) Using a buyers advocate/agency, but again, how else do they source the properties - through their contacts with real estate agents or developers or banks?
(7) Word of mouth, knowing a friend, relative, associate, neighbour who is thinking of selling their property soon.
(8) Property marketers, eg, the John Hopkins group, mainly selling new and off the plan properties on behalf of developers, but also claim they are able to source other older properties too, but again, how?
(9) Speaking to and maintaining contact with property developers directly.
(10) Having some contact at a bank who could tell you of a mortgagee sale.
(11) Doing your own advertising, saying that you are an investor looking to buy certain properties.

Are there any secrets to sourcing investment properties?

Is there something that the "professsionals" are doing that the "average joe" doesn't know about?

Any thoughts or experiences on this???

GSJ

I only know of two people who have actually purchased using Buyers Agents and both of these properties were advertised on the usual big name websites. If it's a quality asset and the seller is not an idiot why would it not appear there? I'm guessing while 'professionals' do have some extra access through their close working relationships with agents it's more of a marketing ploy that anything else.

Hiya,

It can also be a matter of timing.

The sales are no so much "secret off-market sales", rather, the agent has not yet organised the advertising and had it published.

For example, some agencies outsource just about everything. So, if you list on a wednesday... Photographer, copywriter and floorplan artist can't get out until Friday. They don't get their product back to the agent til Monday afternoon. Then, the agent sends these off to the assorted advertising mediums.

So, from Wednesday the 1st you listed your property. It is not on the internet until the following Tuesday (7th), not in the window until the Thursday (9th) and not published in the local magazines until the Wednesday after that (15th)!!

This is an extreme example, but, it happens often.

Just demonstrates how worthwhile it is to have a good working relationship with your favourite agents. (If there can be such a thing )

Cheers

James.

I've sold 2 cf+ properties in the last year.

1. Sold though a buyers agent. It definitely did not appear on the 'big name websites', but Domcc1 I'm far from being an idiot. From a seller's perspective, using a buyer's agent can be pretty quick and painless if they have a database of keen clients, not to mention that there are no advertising costs or commission - the buyer pays the agent.

2. Sold to a very professional and gentlemanly chap who wrote me a letter. He knew the property and wanted it so he made me an unsolicited written offer. I thought it was a fair price. Very painless sale, though the solicitors dragged their feet a bit.

Scott

We actually got information from our mortgage broker about an apartment building that was for sale but, as yet, hadn't been listed with the real estate.

GSJ said:

I read somewhere that "professional investors don't simply find properties by looking through the weekend or local paper, or on internet sites like realestate.com.au, domain.com.au or realestateview.com.au."

Apart from these above standard ways, how else are you supposed to source residential properties to buy?

Some other ways:

(1) Looking at individual real estate agent websites.
I've found many of these link to realestae.com.au?
(2) Speaking and maintaining contact with real estate agents, who could tell you about properties coming up for sale before they get advertised, or, properties that are not having a formal advertising campaign.
Agree with this
(3) Using a Neil Jenman real estate agency.
Huh ??
(4) Looking for sales by owners directly or privately without agents, in newspapers or on the internet.
dosen't this go against the above comment? ]"professional investors don't simply find properties by looking through the weekend or local paper, or on internet sites like realestate.com.au, domain.com.au or realestateview.com.au
(5) Posting a message on the realestateview.com.au bulletin board.
Thanks I'll check this out
(6) Using a buyers advocate/agency, but again, how else do they source the properties - through their contacts with real estate agents or developers or banks?
I'd presume relationships with clients
(7) Word of mouth, knowing a friend, relative, associate, neighbour who is thinking of selling their property soon.
Yes, some people even offer cash incentives if someone brings them a deal that goes through..friends, rellies etc etc
(8) Property marketers, eg, the John Hopkins group, mainly selling new and off the plan properties on behalf of developers, but also claim they are able to source other older properties too, but again, how?
??
(9) Speaking to and maintaining contact with property developers directly.
Sounds good
(10) Having some contact at a bank who could tell you of a mortgagee sale.
Hasanyone done this?
(11) Doing your own advertising, saying that you are an investor looking to buy certain properties.
Certainly sounds good to me
Are there any secrets to sourcing investment properties?

I think the best way is to let as many people as possible know you are interested and offer 'finders fee's" for deals that go through..
Is there something that the "professsionals" are doing that the "average joe" doesn't know about?
Probably..But I'm an average joe

Any thoughts or experiences on this???

GSJ

Click to expand...

My thoughts posted above in Blue on the topics

REDWING

depreciator said:

1. Sold though a buyers agent. It definitely did not appear on the 'big name websites', but Domcc1 I'm far from being an idiot. From a seller's perspective, using a buyer's agent can be pretty quick and painless if they have a database of keen clients, not to mention that there are no advertising costs or commission - the buyer pays the agent.

Click to expand...

Interesting. Apologies, I chose some poor words in my earlier post.

I'm not sure whether I would have got a higher price selling it the more traditional way.
Hey, maybe I am an idiot?
I guess thankfully I'll never know.
It was good to get a quick sale - I sold it late December last year - and it was good not have to pay advertising or commission.
I've got a reasonable idea of what things are worth in some places and I pitched the price at what I thought it was worth - my PM asked one of the salespeople what he thought it was worth and his estimate was below mine.
Using the buyers agent meant I got far fewer tyre kickers and no silly offers. I know Mini Mogul on the PI site sells a fair bit of property in NZ and when she puts a deal out to her data base it goes in a day.
Scott

I think there is value in the quick, hassle free sale. I believe there's no shame in paying (and therefore I guess selling) at a fair market price. Given that CF+ is scarce and you knew the right buyers agent to go to it seems like a great way to dispose of a place. Most BA's I know harp on about how they screwed the vendor and got the place below market price etc, however I'd say in this climate any BA that simply had a CF+ place at regular market price would be offering something 'special' to buyers. While my marketing 101 says that you should try to reach as many potential buyers as possible (hence my comments about re.com.au etc) what you've done is reached a narrower section of more serious buyers - marketing 202!

Yep, buyers agents unashamedly work for the buyer - they're the ones who pay them. Traditional RE agents try and get buyers and sellers alike to believe they're working for them - they sometimes get caught out.
The challenge of marketing is to reach the right target i.e. to minimize wastage.
Scott

Buyers advocates?

Any buyers advocates here that could suggest any strategies they use to source properties for their clients? Bird dogs even...

GSJ

Mainly knowing your database.

A buyers agent can work in 2 ways, sourcing property off a particular criteria a client gives them, or sourcing suitable investments which he then presents to his database of clients.

The first way is exclusive agency which prohibits the numbers of properties you will source in any given timeframe. What I find is remarkable is to check back with some buyers a year or so after they bought to see if they intend to sell these properties.

If the ratios of rent to purchase price make them still suitable for my other clients, I would simply do a direct phonecall or email out and usually these properties move so quickly I have to take a breath.

Some are so nice that I email out at 9.30 am, go for a beach walk, check my emails at 11am and 5 replies have arrived all wanting the property.

Of course a lot of things arent just pre listings with agents. It is also advance knowledge of price reductions and urgent vendors due to other commitments. These factors as well as trawling the private sale websites allows me to find those little gems that are sometimes overlooked.

To all I say, having an external non emotional perspective on a property or particular area, is all that is sometimes needed to get people over their fears and buy property.

Happy Hunting all and Merry Christmas

DD1

DDI is right, in that you work off ALL available databases and sources. Whether that be real estate sites, newspaper classifieds, magazines, signs or information from friends/colleagues about someone selling, you scour the available stock on the market to locate a property that meets a client's criteria or "wishlist".
As far as secret off market sales go, I would gather these rather refer to the sales known as "silent listings", or clients who would rather not have it broadcast that their home is actually for sale. Sellers who abhor signage outside their property, don't want anyone seeing their house in local ads and who prefer a discreet and quiet sale. Not everyone wants their property details plastered all over domain.com or featured in the front page of their local realty mags. Think politicians, celebrities, anyone who has an easily recognisable home, landmark properties etc
James GG is spot on when he points out the importance of the ongoing relationship with agents- see them often enough and you will be the first to hear about such sales, as well as brand new listings and listings that are only wishful thinking or pipedreams
It pays to stay in touch and buyers agents are in a great position to do this.

The often forgotten (but increasingly popular) private sales sites are also a must to check out any sales as well. Check out some of the ones below for a peek on what's on offer currently in our great wide land:

http://www.isold.com.au/Advance_search.asp
http://www.housesonline.com.au/
http://www.mastersell.com.au/index.php?star=MTY5
http://www.ozprivatesale.com.au/user/showalltown.asp
http://www.smartvendor.com.au/
http://www.privatesalepremises.com.au/
http://www.privatesale.com.au/
http://www.propertyzone.com.au/
http://www.noagentproperty.com.au/
http://www.privatelisting.com.au/

Hi Jacque

Do you realise since you posted all those links, noone has posted on the forum for over an hour, and on a Tuesday night!!

And guess what, I found a property I'm a bit interested in! And on a private for sale site, perfect for me!! Who needs agents anyway.

It's a real hassle buying our own listings, we nearly have to pay more than the asking price to avoid a conflict of interest, and when dealing with other agents it's hard to get them to give us the same service they'd give a regular buyer. I guess they're hardly going to call us every time they get a new listing....

Thanks

Sultan of Swing said:

Hi Jacque

Do you realise since you posted all those links, noone has posted on the forum for over an hour, and on a Tuesday night!!

And guess what, I found a property I'm a bit interested in! And on a private for sale site, perfect for me!! Who needs agents anyway.

It's a real hassle buying our own listings, we nearly have to pay more than the asking price to avoid a conflict of interest, and when dealing with other agents it's hard to get them to give us the same service they'd give a regular buyer. I guess they're hardly going to call us every time they get a new listing....

Thanks

Click to expand...

Glad to be of help, SOS
Let us know if you find anything!

Ta.

Thanks all for your replies to this thread, particularly buyers agents DD1 and Jacques!

GSJ

No worries GSJ
Hope I've been of some help and a few members have bookmarked those private sale sites- they may not be as professional as realestate and domain but everything is worth checking out!