60% of all transactions over £10 million in Prime Central London sell off-market. Selling a property off-market is the preferred approach in super-prime markets. However, the strategy has grown in popularity in recent years and is also more prevalent in the £5m+ range.
In this guide to off-market property in London, we will uncover the facts. Consequently, understanding how selling or buying off-market property works will help you avoid expensive mistakes.
The definition of off-market varies greatly depending on who you speak to. The term generally refers to any property not advertised on the open market. However, “off-market” could be through any channel, not just estate agents. Buying agents are behind most off-market transactions in London. They have extensive connections throughout the property industry. In addition, they are always the first to hear when a previous client intends to sell. Buying agents are usually the first to be asked by their clients if they know of any suitable buyers.
Off-market property also includes property discreetly marketed by an agent. These are properties shown only to qualified buyers and buying agents they know and trust. In some cases, the selling party may request a detailed profile of the buyer before any information is released.
There is always much debate about what is and what is not off-market. Discreet marketing and off-market are often confused. Some agents will mailshot their entire database with a new “off-market” instruction. Others will argue it cannot be off-market if everyone knows about it. Just because it is not on the internet, it does not mean off-market. You can see how confusion can arise.
Pre-market and off-market property are essentially the same thing. Selling off-market is the preferred route for most super-prime properties in London. A good agent will have a clear marketing strategy from the outset. This strategy will include starting the property off-market to gather feedback on the price and gauge demand. If the property does not sell, the knowledge gained during the off-market phase is used to position it for the open market.
Offline simply means it is not on a website and should never be confused with off-market.
The selling agent will still mail shot the property details to their database and post details in the numerous agents WhatsApp groups. An offline property will still have been seen by hundreds of agents and thousands of potential buyers.
There are numerous reasons for selling property off-market.
The selling agent may want to test the market to gauge demand to achieve the best price. They will have confidential conversations with a handful of trusted buying agents or their top buyers.
The vendor does not want the property and its contents displayed to the general public. Publishing images of art or antiques on the internet, for example, is not an option.
A high-profile vendor may not want people viewing their property for privacy reasons. Therefore, the selling party will diligently profile all prospective buyers.
There may only be a handful of potential buyers in the market with the ability to purchase at this level. Finding suitable a buyer can take time. Having an super-prime property on the market for too long can send the wrong signal to buyers.
Most commonly, the “3 D’s”. Death, Divorce and Debt. The seller does not want the neighbours to know they are selling. They do not want lots of probing questions during a difficult time.
In certain situations, they may only want to sell to specific people for many reasons.
They may have a trusted buying agent who handles all their property matters. They do not need to use an estate agent as the buying agent can sell the property off-market through their network.
The vendor may need to sell at a certain point in the future. Therefore, the agent will only introduce potential buyers agreeable to the specified conditions.
The vendor only wants serious buyers to receive information or view the property. As a result, the agent will profile all prospective buyers before sending property details. Buying agents are involved in most off-market transactions as they only work with serious buyers.
The Buying Agents specialise in selling £10M+ London homes off-market. Please contact us for a free, no obligation desktop valuation.
One of the main reasons for selling off-market is to test the price without leaving a digital footprint. As a result, most off-market property in London is overvalued.
The selling agents job is to get the best price for their client, the vendor. To achieve the highest price, the guide price needs to push the boundaries of fair market value without losing credibility.
The margin between market value and guide price is also intended to take negotiation into account. Unfortunately for buyers, this margin is often excessive resulting in some properties being overvalued by as much 30%.
50% of all listings in London are overvalued and as a result do not sell.
There are a number of reasons for over valued property.
The vendor has set the price and has unrealistic expectations. However, the agent knows they will lose credibility if they list it on a website, so they agree to market discreetly.
The agent purposely overvalued the property to effectively “buy” the listing. Discreetly selling the property will give the agent time to “chip” (gradually reduce) the price. This process reduces the asking price to an acceptable level before advertising openly.
Both the agent and seller know the property is over valued. However, they continue to market at an over inflated price hoping to find a naive buyer. Unfortunately this still happens a lot, especially with overseas cash buyers. Most people who over pay do not realise until they come to sell.
However, if buying with a mortgage, the lender will always conduct a mortgage valuation. Cash buyers should always include a valuation in the RICS survey.
Many vendors try to sell off-market, direct to the buyer, to avoid paying an agents fee.
If someone cannot see the value of paying 1.5 – 2.5% to maximise the value of their home sale, they will probably not be willing to negotiate. From experience, these sellers also have unrealistic price expectations.
Some vendors try to sell direct to a buyer as they think can achieve more than the agents/valuers valuation.
Most good estate agents will not want overvalued stock on their books as they will lose credibility with serious buyers. If a vendor disagrees with the agent’s appraisal, they often try to sell “off-market” to bypass the agent.
Off-market property always attracts attention and hype. Some buyers are drawn to the exclusive nature of off-market property as they want a property no one else can have. Sellers and agents think that just by labelling a property “off-market”, they will increase its appeal and price.
In some cases, this is true, and there will always be one one buyer that falls for it.
Many selling agents exaggerate the extent of their off-market transactions to attract more buyers. Buyers think they will get access to a property no one else has seen. The truth is that they usually get access to the overvalued properties no one else wants.
Over priced property takes longer to sell. Also, the longer a property is on the market, the less chance there is of achieving the guide price. Most property portals have a listing history section so buyer can see how long it has been on and any price reductions. When selling off-market, the property is not listed on portals so there is no price history.
The best homes in London above £5M always start off-market.
The best way to find off-market property in London is to retain a buying agent. A good buying agent will have decades of contacts and a reputation for buying the most discreet listings.
If you are considering buying a property in London please request our guide on “How we find property” guide.
The best homes in London always sell off-market. Property prices in Central London range from £1,500 to £ 11,000 per sq ft. These values mean the best properties regularly sell well into the hundreds of millions of pounds.
These off-market homes are never advertised, and details of the transactions are kept strictly confidential.
All parties involved in the deal will sign an NDA, and the number of participants will be kept to a minimum. This exclusivity ensures that any leaks about the transaction are easily traceable.
The main downside to selling off-market is limited exposure for the listing. As a general rule, the more people who see the property, the greater the chance of receiving a higher price. The more interested buyers there are, the more likely competitive bidding will occur. However, when selling London super-prime property, fewer well-qualified buyers are far better than thousands of web impressions.
A good buying agent with decades of experience will know the best agents and representatives to call. They will ensure your property is on the radar of every person with access to the right level of buyer.
To sell off-market in London and achieve the best price, you need to retain an experienced buying agent or broker.
In London, there are only around 20 top brokers who have access to the wealthiest buyers in London and internationally.
Your agent will know exactly who to call and who will have access to the type of buyer for that specific property.
An experienced agent will also know just the right amount of information to reveal. This information is essential to generate interest without compromising privacy or security.
Yes, off-market properties are usually more expensive for the following reasons
However, in some cases off-market can be cheaper.
The main risk of buying off-market property is over paying. Over 50% of all listings are over valued so you need to know what you are doing.
These are the 10 most frequently asked questioned about off-market property. Please feel free to contact use directly if you have any further questions.
An off-market property is a property that is for sale without being publicly listed on property portals like Rightmove or Zoopla. The sale is handled privately, often through agents, buying agents, or direct-to-vendor marketing.
Sellers choose the off-market route for reasons privacy, speed, avoiding agents, or dealing with sensitive situations like divorce or financial pressure. Many high profile people and ultra-high-net-worth sellers prefer discretion.
Yes, it can be. With less competition and no bidding wars, buyers can sometimes secure below-market-value deals or negotiate more favourable terms.
Common methods include:
Speaking with estate agents
Direct-to-vendor marketing
Attending auctions and property events
Using off-market property platforms
Speaking to landlords or developers directly
They’re not inherently riskier than open market listings. However, due to the discreet nature, sometimes there is not much information available. The normal due diligence is crucial.
Verify legal ownership and vendors position
Get a full RICS survey
Check planning permissions and restrictions prior to offering
Confirm the property hasn’t sold before and fallen through. This could indicate problems with the property or ownership.
Yes. Many agents quietly market homes to their network before a public launch. This is known as a “discrete or private listing” or “pre-market listing.”
Yes, off-market status doesn’t affect mortgage eligibility. Lenders view it the same as any other purchase as long as the agreed price aligns with the lender’s valuation.
No, off-market property is equally attractive to both homebuyers and investors. However, the benefits and disadvantages vary. Please contact us to discuss your requirements so we can advise accordingly.
Investors like off-market deals because they can offer:
Lower prices
Higher yields
Faster transactions
Opportunities for refurbishment or negotiation
Less competition from the general public
Potential drawbacks include:
Limited availability
Harder to find suitable deals
Risk of overpaying if the seller’s price is unrealistic
Less transparency compared to open-market comparisons
Please contact us to discuss your search in total privacy and discover how we can help.