What are the Differences Between On-Market and Off-Market Real Estate Deals? Which is Better?

As a real estate investor and agent, I'm often asked, "What are the differences between on-market and off-market real estate deals? Which is better?"

August 10, 2022

Written by Lauren Vargas, a real estate investor and agent from Houston, Texas

Disclaimer: This information is not intended to be taken as financial or legal advice. Higher Ground Homebuyers encourages you to reach out to a trusted legal and/or financial advisor regarding your individual situation.

Answer: There are benefits to both on-market and off-market real estate deals. Which is better depends entirely on the homeowner's situation and priorities. Below, I've highlighted some key differences, benefits and considerations for both.

When selling your home on-market...

• Your home will typically be listed on the MLS by the licensed broker/agent of your choosing. Short for Multiple Listing Service, the MLS is a private database for real estate professionals which is used in helping clients buy and sell real estate. The ability to market a property through the MLS means you will have more exposure to motivated buyers in order to bring as much possible interest, offers and money to your transaction.

• An on-market deal with a broker/agent benefits homeowners in the process of determining an accurate value for their property, implementing a plan for getting the property sold at the best possible price, and guidance in navigating the transaction all the way to closing.

• A consideration when selling your home on-market is the preparation needed for the property, the time it will take for completing the transaction, and the closing costs including the sales commissions for your listing agent and the buyer's agent (although negotiable, each agent generally earns 3% of the purchase price).

  
  

When selling your home off-market...

• You will work to find a buyer or investor who is ready to pay for your house at the price you agree to, with the buyer often accepting the property "As-Is."

• One of the main benefits of an off-market deal for homeowners is that their closing is typically faster (generally taking two weeks or less). These types of buyers are ready with cash to secure the deal.

• Sellers who need to sell quickly, avoid the time and expenses of repairs, and/or those who prefer a more private transaction can benefit from an off-market deal.

• Selling your home off-market generally means your buyer will factor in the amount that will be needed in order to renovate or bring your home to an on-market sale or lease-ready condition. Finding buyers who are ethical, fair with their offers, and proficient in getting deals to closing are common priorities for homeowners selling their home off-market.

  
  

In conclusion, there are benefits to selling your home both on- and off-market, which is better depends entirely on the situation and priorities of the homeowner. In either case, homeowners should prioritize choosing a real estate professional they can trust who has competency in navigating similar transactions. Both transactions should close through a reputable title company and use contracts which the seller has had the time to carefully review and the opportunity to seek legal counsel if desired.

Interested in selling your home off-market in or around Houston, Texas?

You've just found the right real estate investor! My name is Lauren; I believe in honesty, dependability, and win-win deals. To get your offer call me at (713) 257-0018 or visit: https://www.hgbuyshouses.com/get-cash-offer