How to Buy Off-Market Properties

Buying

Apr 26

Written By Jeff Roth

11 Ways to Buy Off-Market Properties In Any Market in Michigan

By Jeff Roth, Realtor

“There’s always opportunity in real estate. It’s just a matter of finding that opportunity in the current market.”

— Samantha DeBianchi

Why Off-Market Properties?

• Off-market properties present an excellent buying opportunity.

The competition for off-market properties is less because fewer buyers know about them or how to find them.

• There are more properties off-market then are currently listed for sale.

• The typical neighborhood or community will have so many properties go up for sale every year.

Thus, the chances of finding a seller at the point of selling before listing is fairly good.

How do you Locate Off-Market Buying Opportunities in any Market?

There are many clues to finding value in listed properties:

1. Look for properties that were listed and now are expired or withdrawn.

Contact those sellers to see if they are still interested in selling.

2. Contact properties for rent and see if the owner would consider selling.

Landlords become tired landlords and may be at the point of considering selling when you contact them.

3. A targeted postcard mailing campaign to a specific neighborhood or radius around a specific house.

Explain you are a buyer or have a buyer looking to buy a house in that neighborhood can yield excellent results. Plan to do the postcard mailing more than once to get in front of the seller a few times. It may take a year of monthly postcards to start getting results. Data shows that direct mail, done repeatedly over time, yields favorable results.

4. Good old fashion door knocking is an excellent way to find off-market properties for sale.

Just walk the streets you are interested in and say you are the buyer or you have a buyer interested in buying in this neighborhood and ask if the homeowner knows anyone interested in selling. It is good to give them something like a business card, flyer or door hanger, if not home, to be able to contact you later.

5. Driving for dollars is another way to locate off-market properties.

This is where you drive through an area you are interested in buying and look for tall grass, deferred maintenance or a vacant appearance. Write down the address and then go on the city or county assessor’s website and look up the owner of record and send them a postcard or letter explaining you are interested in potentially buying their house. An out of area owner with an address for the tax bill different than the address of the property could indicate a potentially motivated seller as well.

6. Pre-foreclosures are another great place to find off-market and potentially motivated sellers.

Foreclosure rules vary by state but usually there is a requirement to post the properties going into foreclosure in a legal notice either in the local paper or the local legal news. You can find out how pre-foreclosures are posted by contacting the local sheriff’s office as they usually handle the property auctions at the courthouse when the property gets to that point in the foreclosure process. A personal contact with the individual in foreclosure is best like knocking on the door just like you would door knocking in the neighborhood or you can send them a post card, flyer or leave a door hanger for them to contact you if they are interested in selling.

7. Bandit signs like “We Buy Houses” or ads in the local paper or local church bulletin.

Simply say you are looking for a house to buy in the area and online ads can yield results if you are interested in a broader area. Be aware of local sign ordinances and rules for disclosure as a real estate professional when using this strategy.

8. Local real estate investor groups will have investors and wholesalers that may know about off-market opportunities.

An investor may be interested in selling one of their properties or know of another investor interested in selling. A wholesaler specializes in finding off-market deals and bringing them to potential buyers. Just get on the email list for the wholesalers so you get access to the properties as they find them. Some wholesalers are better than others.

9. Contact property managers in the area and ask if they know if any of their property owners are interested in selling.

This uses the network effect and a very good way to locate properties before they become listed.

10. Turn your mail person or delivery person into a bird dog.

This uses the network effect and a very good way to locate properties before they become listed. Your mail person will know if a house is vacant or if someone is thinking of selling or renting because they may talk with the homeowners on their route.

11. Try demographic marketing.

For example, look for homeowners of retirement age that may be thinking about downsizing and send postcards or mailers to them a few times to see if they would be interested in selling.

How Can a Real Estate Professional Help You Buy Off-Market Properties Well in Any Market?

A real estate professional should know how to locate-off market properties and can help you do so.
They know which postcard services are already set up to market to neighborhoods, find the pre-foreclosure postings, how to get addresses of a particular area or conduct a demographic study of potential off-market sellers.
They know the values in the area well and can help you determine if you are buying well with a particular offer and how to structure the offer so it is accepted by the seller.