It’s been widely reported over the past few years that the secret sales market is no longer reserved solely for London’s most valuable properties.
This trend shift invites the question: what does this mean for house sales here in West London? As local estate agents, we advise clients on the best strategies to achieve optimal results.
In many cases, an off-market approach has proven beneficial – but is a secret sale always the best option?
The secret sales market
The secret sales market, also known as off-market sales showed considerable growth with approximately 23% of London homes being sold off-market in 2023, marking an increase from 20% during the same period in 2021.
Additionally, the high-value sector of the London property market showed significant resilience in the first half of 2023 alone, with around 240 properties valued over £5 million changing hands off-market, representing a 22% increase from the first quarter.
However, the latest data shows that in 2024 the likelihood of vendors selling off-market has decreased by 18.3% UK wide.
Why are homes sold off-market?
In recent years, the dominant motivation for selling discreetly has been overwhelming buyer demand. Many selling agents have extensive lists of serious, committed buyers eager for the right property, making off-market sales an appealing route for certain sellers.
However, the specific benefits of off-market transactions vary based on individual motivations and time constraints. Selling quietly, often to a select few buyers who are in a strong position to proceed, can alleviate some of the stress associated with open marketing and numerous viewings.
For some sellers, privacy is a primary concern, especially for high-profile or recognisable individuals who wish to avoid public listings. Additionally, the discretion of off-market sales is often valued in sensitive situations, such as those involving divorce, debt, or probate matters. Through an estate agent’s professional network and connections with potential buyers, these transactions can occur entirely without advertising.
The London secret sales market has also long been a niche where buying agents operate, and many sellers feel reassured knowing a property finder has pre-vetted a buyer’s financial capacity. This approach may reduce the risk of sales falling through, as buying agents often confirm the readiness of their clients to proceed before initiating any transaction.
Why does it mean if a property is off the market?
When a property is “off the market,” it means it’s not publicly advertised for sale, allowing for a more private, controlled transaction. This approach is often chosen by high-profile sellers or those with valuable properties who prioritise discretion.
Off-market sales enable a selective, tailored process, where agents connect sellers with financially qualified buyers, minimising the disruption of open viewings.
Additionally, it provides flexibility, allowing sellers to gauge interest and potential price points without public exposure. This approach can be especially advantageous in uncertain markets, as it offers a less pressured way to explore buyer interest and refine pricing.
How market climate influences secret sales
Traditionally, winter brings a seasonal uptick in quiet transactions, with sellers perhaps holding back on full marketing efforts due to darker, wetter months that don’t always showcase properties in their best light.
Alternatively, some sellers may pause open marketing until after the festive period, while still welcoming viewings from well-matched buyers.
A growing number of sellers, however, are using off-market listings as a way to gauge interest. Sellers often agree with their agents to only go public if the property doesn’t sell privately within a set timeframe, or to review this option at a later date.
In uncertain market conditions, many prefer testing the waters with a select group of buyers rather than risking a property sitting unsold online or undergoing a visible price reduction.
Sellers are also increasingly selective about prospective buyers, often preferring to avoid sales dependent on large mortgages. Although there are signs of stability in the mortgage market, this cautious sentiment among sellers may still persist.
Does selling secretly always work?
While off-market sales can work to a seller’s advantage in many cases, this approach isn’t universally effective. Sellers are wise to take their agent’s advice, which should consider each property’s unique context, location, recent transactions nearby, current market climate, and buyer demand.
In certain segments of the market, where supply is particularly limited, a “secret” pre-market phase can serve as a valuable component of a broader selling strategy. This approach may help generate initial interest before deciding whether to pursue full exposure.
Yet, some sellers may initially favour quiet marketing only to later decide that the wider audience reached through online listings could be beneficial. Motivation to sell, combined with a desire for full exposure, often prompts a shift towards open marketing in time.
How do I find a property before they hit the market?
Securing a property before it officially hits the market is challenging, but certain strategies can improve your chances.
Subscribing to pre-market alerts from real estate platforms and agencies can give early access to new listings, often as a premium feature.
Building strong relationships with estate agents, property finders, and other industry professionals can also provide insider knowledge on properties about to be listed.
Additionally, reaching out directly to property owners in desirable areas can be effective, particularly for rare or highly sought-after properties, though this approach requires tact and discretion to make a positive impression.
How to find off-market properties in London
To find off-market properties in London, a strategic approach is required, as these listings are not widely advertised. Building relationships with local estate agents is a great starting point, as agents often share exclusive listings with select clients before they reach the open market.
Additionally, engaging a property finder or buying agent can be highly beneficial; these professionals utilise networks to uncover properties that align with specific client needs, often before they’re openly listed.
Finally, word-of-mouth and networking within local communities can reveal discreetly marketed opportunities, especially in high-demand areas where sellers may prefer private transactions.
If you’d like to discuss selling your home, our team of local experts would be delighted to explore the best strategy for your sale. Get in touch for a no obligation discussion.
