Buy Property Off Market

Category : Investment

This guide details how to buy property off-market, from conducting due diligence, to exchanging contracts and completing the legal process.  
 
Off-market properties, also known as ‘quiet’ or ‘pocket’ listings, are homes sold privately without being advertised on public platforms like Rightmove or Zoopla. This is becoming an increasingly attractive option for buyers - whether you're looking for less competition or the potential for better deals – and yet 1 in 4 property purchases in the UK fall through before completion. Off-market purchases, with their direct and more flexible approach, can help reduce this risk, but they still require careful planning.  
 
In this guide, we’ll focus on the purchasing stage of process, helping you navigate everything from doing due diligence to completion, and minimising potential pitfalls along the way. If you’re still in the search phase, we’ve got a detailed guide to finding off-market properties to help you get started.  
 
For a full overview of off-market properties, check out our complete beginner’s guide on the topic.  
 

Why Buy Off-Market?

Buying off-market comes with a number of benefits for both the seller and buyer. From a buyer's perspective:

  • Less competition: Without being publicly advertised, there is naturally less competition with other buyers, creating a less stressful experience. You avoid the challenges of bidding wars which can push up prices and draw out the sales process. This is especially useful if you're buying in a hot property market where competition is intense.  

  • Potential for better deals: You can potentially buy at below market value, as sellers may be paying less real estate commission and open to flexibility on price - although this can vary depending on the location and seller.

  • Investment properties: You may be searching for an investment property, or a home to buy and flip for a profit. Finding and buying an off-market home in a good location can be a great way to achieve this.  

How to Buy Off-Market Property

Although the steps are similar to a standard property purchase, off-market deals tend to require more direct negotiation and discretion to avoid the sale falling through.  

Step 1: Consider your finances  

Once you’ve identified a property you’re interested in, the first step is to prepare for the purchase by understanding its value and considering your finances.  

  • Set a Budget: Set yourself a clear budget to account for all costs, including any solicitor fees, stamp duty, and property surveys.  

  • Research Similar Properties: Gauge if the asking price is fair by researching recent sold prices for similar homes in the area.   

  • Obtain Proof of Funds or a Mortgage in Principle: This will show the seller you’re serious about the purchase. Make sure you arrange financing before making any offers. 


Step 2: Engage professional help  

Navigating an off-market purchase can be less simple than buying a publicly listed property. You may find it beneficial to work with professionals experienced in handling this sort of sale, particularly when it comes to the legal aspects and ensuring everything runs smoothly.  

  • Solicitor: A solicitor will manage legal checks, and help you prepare contracts.  

  • Surveyor: A professional surveyor will help uncover any issues or maintenance needs on the property. This can be used to negotiate the purchase price if necessary. 

  • Property Management Company: A property management company can simplify the entire process, from connecting you with sellers to managing surveys and legal documentation.  


Step 3: Conduct due diligence

The private nature of off-market deals means it’s critical you carry out due diligence as part of the buying process. This confirms the property’s condition and legal standing, which will protect your investment and avoid any surprises later on.  

  • Property Survey: Make sure the property is inspected thoroughly to uncover any issues, such as damp, outdated wiring, and any other defects that might need fixing. 

  • Title Checks: Ensure the property has a clear title, is free from disputes, and has no outstanding debts or restrictions that could impact your ownership. 

  • Valuation: Obtain an independent valuation to verify the property’s market value.

  • Comprehensive Information: Request comprehensive property information, such as photos and floor plans.  

Off Market Home

Step 4: Negotiate with the seller directly

Off-market sales often involve more direct discussions with the sellers or their representative. After approaching the seller directly or through your agent, this is a good time to agree on key terms, as well as build trust and clear communication with the seller (an important part of ensuring the deal progresses).  

  • Purchase Price: Make an offer based on the local market and results of the property survey you conducted. If the seller is not using an estate agent, they may be more open to negotiating on price. 

  • Completion Timelines: Having some flexibility on your completion date may help build rapport with a seller.

  • Prepare to Negotiate: Explain why you’re interested in the property, and prepare to negotiate, as there’s no competitive public bidding.  


Step 5: Finalising the contract  

Once you’ve agreed on terms with the seller, it’s time to finalise the contract. At the exchange stage the sale is legally binding, so it’s crucial to confirm everything is correct and everyone is happy.  
 
Your solicitor or other professional can guide you through this stage, but the contract should include:

  • The agreed price
  • Any conditions or contingencies 
  • Completion and exchange dates  

Review all the terms carefully before signing to ensure it aligns with what you and the seller agreed. 


Step 6: Exchange contracts and transfer funds  

At this stage, you’ll exchange contracts with the seller making the sale legally binding. You’ll pay a deposit, and finally confirm your commitment to the sale.  

  • Sign Contract: Both parties will sign the contract, confirming the sale of the property.

  • Transfer Funds: Ensure your funds are ready for the final transfer. If you’re using a mortgage, your lender will release the remaining amount. If you’re paying in cash, ensure your funds are transferred on completion day.  

In the completion stage, the ownership of the property is officially transferred to you, concluding the buying process.  


Why work with a property management company?

Buying an off-market property is a complex process, but can be made easier with the right help. At The Right Property Group, we specialise in helping buyers through each stage of the journey as much or as little as you’d like. Whether you’re new to off-market purchases, or an experienced investor, our team is here to support you.  
 
If you’re ready to begin, get in touch with our team today.  

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