Faqs

What is off-market property, and why should I consider buying one in Liverpool?

Off-market properties are those not publicly listed on traditional real estate sites like RightMove and Zoopla. Instead, these properties are sold privately, often through direct negotiations between the buyer and the seller. Buying off-market properties in Liverpool can be advantageous for several reasons:

• Reduced Competition: Without public listings, there’s less competition from other buyers, potentially allowing for better deals.
• Negotiation Flexibility: Direct communication with sellers can lead to quicker, more flexible and personalised negotiation terms.
• Exclusive Opportunities: Off-market deals can offer unique properties that aren’t available on the open market, including distressed or undervalued properties.

How can I find off-market properties in Liverpool?

Finding off-market properties requires a proactive approach:

• Networking: Build relationships with local real estate agents, property managers and other industry professionals who might know of off-market opportunities. This is where we at The Finance Business come in as we are so well connected that opportunities arrive at our door daily.
• Direct Approaches: Contact property owners directly, call them or even make door-to-door enquiries. Expressing interest directly can sometimes uncover sellers considering selling but who haven’t listed their properties.
• Investment Groups: Join local property and real estate investment groups or forums where off-market deals are often discussed and shared among members.
• Property Sourcing Services: Utilise property sourcing companies that specialise in finding off-market deals for investors.

What are the advantages and disadvantages of buying off-market properties?

Advantages:

• Privacy and Discretion: Transactions are kept private, which can be beneficial for both buyers and sellers.
• Potential for Better Deals: With fewer competing offers, buyers may be able to negotiate better terms and prices.
• Flexibility: Direct negotiations with sellers can lead to more flexible purchase agreements and much quicker and streamlined  timelines.

Disadvantages:

• Limited Availability: Finding off-market properties can be challenging and time-consuming, which is why we here at The Finance Business identified this problem and created our off market property division.
• Less Transparency: Off-market deals may lack the transparency of public listings on RightMove and Zoopla, requiring more due diligence.
• Risk of Overvaluation: Without comparable sales data from public listings, it can be harder to accurately assess the property’s market value.

What steps should I take to ensure a successful off-market property purchase in Liverpool?

To ensure a successful off-market property purchase:

• Set a Clear Budget: Understand your financial limits and secure financing if necessary. Having pre-approval can strengthen your negotiating position. At The Finance Business, we are well placed to secure your commercial mortgage or bridging loan to allow you to complete the property purchase quickly.
• Conduct Thorough Due Diligence: Perform comprehensive inspections and obtain a detailed property history to uncover any potential issues.
• Legal Representation: Hire a competent Solicitor to review contracts and ensure the legality of the transaction.
• Get a Professional Valuation: Engage a qualified surveyor to assess the property’s market value, helping you avoid overpaying.
• Negotiate Terms: Work directly with the seller to negotiate favourable terms, including price, closing date, and any contingencies.

Are there any legal or financial risks involved in buying off-market properties?

Yes, buying off-market properties can involve several risks:

• Undisclosed Issues: Without public scrutiny, some property issues may not be immediately apparent. It’s crucial to conduct thorough inspections led by your Quantity Surveyor and Valuer.
• Valuation Challenges: Lack of comparable sales data can make it difficult to assess the property’s true market value, increasing the risk of overpaying.
• Legal Complications: Off-market transactions might involve less standardised contracts, increasing the risk of legal oversights. Employing a good experienced Solicitor can mitigate this risk.
• Financing Hurdles: Some lenders may be hesitant to finance off-market properties, particularly if they perceive the transaction as unconventional. Again, we can help you finance your off market property purchase in Liverpool and Merseyside.

By taking these steps and being aware of potential risks, you can navigate the process of buying off-market properties in Liverpool more effectively.

Can you really buy an off market property with a large discount?

Yes is the simple answer.

We came across a 19 room aparthotel near Water Street/Castle Street, Liverpool recently that was valued just 12 months earlier at £2,110,000. The sellers were unable to sell the property and wanted to move on to developing other non-hotel assets.

We were asked if we could help them find a buyer amongst our list of off market buyers and we were able to secure a sale for them at £1,600,000

So to find off-market property, the buyer needs to know where to look and that is where we come in

Why would a seller ‘sell off market’

Avoiding time wasters and tyre kickers is another one.

One we see a lot (that is rarely mentioned) is also so the seller’s competitors don’t get wind of the fact that they are selling land or property as that can be seen as failure in some people’s eyes.

However, in most cases, this is simply because the asset doesn’t fit in with the sellers core asset acquisition strategy.

For example, they may wish to concentrate on residential assets, not commercial.