Don't get me wrong. There are times when an off market sale can be appealing. Maybe you don't want to feel like the general public is tromping about through your property. Maybe the property belonged to a family member and the entire process of navigating the property is overly emotional. Maybe you're selling to your tenant who has been a great tenant for a number of years. However, there might be a glaring hole with this thought process, which is allowing the market to speak.
Still, the market has been pure chaos with multiple offers on nearly every listing. I personally submitted 2 offers within a span of 48 hours. I was one of many in each case. One listing rejected our offer that was more than 8% above list within less than 24 hours. This market is wild.
Part of the reason I wanted to discuss this is that I was looking at recent recordings and there was one that stood out to me because I didn't recall seeing the listing. Turns out that it was an off market sale. That's also the only rational reason it would have traded for anything close to its recorded price. If it had come to market, it probably would have sold for nearly 50% more than the recorded sale price. Real estate is normally the most significant asset that anyone will ever own and these sellers left 50% on the table!! That blows my mind and breaks my heart to think that this seller missed out on these extra funds for them and their family.
I can see why the family would have had a hard time properly valuing their property in part because there are so few comparable sales for this particular property. However, it's heartbreaking to think that there's a possibility that this seller could have listed their property for 50% more than the sale price. Then add the madness of this market where an offer of nearly 10% over list is still not enough to secure the property This brings the grand total of 65% in missed sales gains for the off market sale property.
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