As property prices drop, are more people choosing to sell off-market? 

The latest auction clearance rates showed a drop to below 60 per cent, another significant sign that confidence in the market is falling with rising interest rates, inflation and the high cost of living. 

When buyers start to stay away from auctions, vendors must look at alternative ways to sell, which is great news for buyers like me who are terrified of having so little control over the outcome. (And surely, I can't be the only buyer who has fallen for the promise that a property will sell for a certain price, only to find on auction day that the reserve price exceeds my budget?) 

The problem with auctions is that they play on our emotional vulnerabilities 

“Bait pricing” is a costly lesson for buyers, and for those who are inexperienced in the buying process, it takes time to comprehend that the market sets the price, no one else. Furthermore, auctions place unnecessary strain on both parties – even the seller. In an auction, the seller has the perceived power all the way up to when a home does not sell at auction. Every week thousands don’t. At this point, there is a huge power shift to the buyer.

With so many unknowns, i.e., increasing interest rates and cost of living as well as possible changes to buyers' financing, it is understandable that some buyers simply don't have the stomach for auctions right now. Frankly, the risk of overpaying with so much at stake is a terrifying prospect for some, which is why so many buyers are postponing their purchases until prices settle or there is an influx of new properties in spring. For first home buyers, in particular, the decision to wait until the market bottoms out stands to save them unnecessary stress and money.

Fortunately, there is more than one way to sell property, and if you sell off-market there's advantages for buyers and vendors alike

The truth is, for the reasons above, many people prefer the more methodical and measured approach of the private treaty sale, the sales process we employ when our buyers and sellers come to us to help them find and sell a property. 

And, obviously, there is MORE THAN ONE BENEFIT to our sales method.

For not only do our buyers and sellers avoid the harried, bullring environment that auctions cultivate, but they are also privy to a range of unique benefits that come with our service, some of which we’ve listed below.

Benefits if you choose to sell off-market

1. We save you time
2. We give you more control over the process
3. We protect your privacy with a more discreet approach
4. Our method can speed up the sales process and can offer greater flexibility in terms of timelines
5. Our process is more streamlined
6. We reduce the competition to only committed buyers

Benefits Listing Loop offers our sellers:

1. For many sellers, there is a price premium that comes with selling off-market because some buyers are prepared to pay that little bit extra to reduce competition and keep their affairs private
2. We save them the gruelling process of preparing their properties for weekly open-for-inspections
3. We save them money on expensive advertising campaigns

Benefits Listing Loop offers our buyers: 

1. We allow our buyers access to our exclusive selection of off-market listings
2. If they require extra support, for a small fee we give them access to our BUYER ADVOCATES who hold their hand through each step of the buying process 
   
3. We reduce the overall competition, which reduces stress and gives them a greater chance of success with their purchase

Sellers won't lose out by not selling by auction

If two or more people want to buy the same home, the worst thing you can do, from a negotiation point, is to allow each person to see what the other is offering!

It is perfectly understandable why a sudden drop in the auction clearance rate may deter some buyers and cause a minor panic amongst vendors, but there’s absolutely no need for either party to worry. Prices may be dropping, but we've got your back and our way of buying and selling property is just as successful as traditional methods - just ask our customers! 

We've got your back!

For more information about the services we offer, check out the many ways SELLER ASSIST and BUYER ASSIST can help you. Alternatively, if you require financial advice following the recent rate rises, check out how our sister company, Lending Loop, can secure you the home loan that best suits your circumstances in the current property market.

To get exclusive access to off-market properties, become a Listing Loop member today for FREE.