Sellers may opt to offer their property for sale off-market to try and save on advertising costs, but new research shows this may be a false economy.
PropTrack analysis of houses sold off-market between July 2021 and March 2022 shows the price achieved off-market is 3.8% lower than listed properties.
The biggest differential was in Greater Sydney where off-market sales went for 4.2% less than on-market sales, which is equivalent to about $60,000.
The unit market had similar results with off-market sales achieving 1.3% less.
PropTrack senior economist Paul Ryan says selling off market can come at a “significant cost to sellers”.
“Some sellers might try to save money by not advertising online, (but) this analysis shows the potential earnings lost in the final price far outweighs the initial cost of advertising — particularly in a market with prices falling,” he says.
The PropTrack research shows off-market sales in locations where median prices range from $500,000 to $750,000 are affected the most with unlisted sales selling for 4.2% lower than those properties taken to market. The difference was slightly lower in high-end markets where off-market sales went for about 3.5% less than on-market sales.