I recently met with two separate couples in the throes of the buying process. One had called me directly regarding a listing and another came into one of my open homes. Both cases were somewhat different, however in conversation both were in the process of interviewing agents. The one point they both independently brought up and wanted advice about was the ‘off market’ sales pitch they had heard from some other real estate agents they had spoken with.

Let’s look at the reality where ‘off market’ sales might occur. First, if the buyer has a very specific location in mind and would pay above current value and connect with ‘the’ agent who happens to have a client in that location. In this one scenario, you can see the two biggest variables…paying above market price and then through chance for most buyers finding the one agent who would have a connection in that location. Agents who promise off market deals may know of listings they have coming up but they don’t know ‘if’ or ‘how’ they will work for a specific buyer they just met.

The second case is one in which a seller is ‘in trouble’ and needs to sell and again the biggest variable is the specific agent or connection. Is the agent who’s promising you this ‘un-marketed’ inventory really going to deliver?

In a market such as San Francisco, where there is limited supply the sellers ‘always’ control the market. Yes, even now. I have spoken to sellers who had their homes on the market last year when the uncertainty was great enough that they wanted to sell. But last year, buyers for the most part weren’t biting (even though that was the time they should have). Now the economy has improved just enough that these folks are just ’sitting tight’..hence our current situation of lower than expected inventory.

It is human nature to want to believe we’re going to get in on the one deal that no one else will know about. The reality is, however, that situation won’t occur and its comparable to saving and becoming wealthy. It’s the consistent smart decisions with trustworthy advisors that get you to the finish line. One of my favorite lines comes from ‘Rich Dad, Poor Dad’ where the author says the two advisors he pays without question are his real estate agent and his attorney because they both make him many more times than they cost. And therein lies the hollowness of the ‘hook’ of ‘off market sales’, the real deals will go to those agents’ best and most loyal clients first. They won’t go to someone they just met.

All the Best,

Lance

415-793-6140