When it comes to London’s property market, what you see is not necessarily what you get. Beyond the property portals lies a secret marketplace where the very best homes exchange homes discreetly without ever being advertised online.
What Are Off-Market Properties and Why Are They So Sought After?
Off-market properties are those not listed on mainstream property portals, or through standard estate agent listings. These properties account for an astonishing one in three UK deals according to the latest figures from estate agent Hamptons International one in three £1m-plus homes changed hands without being advertised.
Camilla Dell, Managing Partner of Black Brick comments, “Last year a record 73% of properties we sourced for our clients above £3 million were not being advertised. Below £3 million, off-market sourcing was still significant, running at 36%. For buyers hoping that their perfect property is going to appear on a portal or with an estate agent, they run the risk of either never finding the right property, or buying something average because they didn’t have full visibility of all the options that were available to them.”
Given the scale of off-market property in London, it is crucial that buyers have access to this covert sales market to be sure that they are selecting the very best home for their needs.
And, for buyers who value privacy, it is reassuring to know that their new home hasn’t been widely viewed online, complete with floor plans, location maps, and photographs. Camilla continues, “We’ve had cases where some of our ultra-high net worth clients have been put off buying a property because it’s been splashed all over the portals. The security risk is high if the world can see the floor plan.”
Why Prime London Sellers Choose Off-Market Transactions
Some vendors prefer the discretion of selling off-market because they don’t wish friends and neighbours to be aware they are selling an asset.
High profile, security conscious figures don’t want details of their homes’ interior and layout plastered over the internet, or endless viewers tramping through their private spaces.
And, if a home is particularly spectacular, estate agents may advise their clients that they simply don’t need to bother putting it online. Camilla comments, “A good selling agent doesn’t need the portals to find the right buyer for a property. Often buying agents are the first port of call, as estate agents know we represent some of the most serious and committed buyers in the market, meaning we get access first.”
Off-market sales soared in popularity during the pandemic, because owners wanted to control the number of people entering their homes. That popularity has endured, because marketing a London home off-market is a way to filter out time wasters and focus on serious, motivated buyers.
How Buyers Gain Access to Off-Market Property in London
Simply scanning property portals will not, by definition, help buyers discover off-market sales.
Building a relationship with individual agents is time consuming, although it may bear some fruit in terms of persuading them to allow you to see one or two off-market homes if you make a good impression.
But the London market is currently extraordinarily fragmented. Beyond the well-known international brands operating in London’s sales market there are literally hundreds of small brokerages and agencies all selling property. Camilla comments, “Property platforms like Rightmove list roughly 800 distinct branch offices in the central zone. Across Greater London as a whole, the market expands significantly to feature over 7,150 total estate agencies. For most of our clients, there are not enough hours in the day to make contact with all of the agents selling properties in your chosen areas. In addition to the agents, there are also now WhatsApp groups with hundreds of agents and fixers, all posting properties, the majority of which have no online presence. Trying to navigate this is complex and exceptionally time consuming, even for seasoned buying agents like Black Brick.”
The silver-bullet solution is to hire a buying agent to work with. They should have decades of experience in London’s market – Black Brick was founded in 2007, and managing partner Camilla Dell is rated one of the capital’s best buying agents by Spears – and a superlative contacts book.
This means that they are able to put together a definitive, comprehensive shortlist of homes for you to view, whether or not they are officially on sale or not.
Camilla continues, “At Black Brick we’ve gone one step further and invested in technology that enables us to enter a clients property search requirements and bring up a list of properties that meet their brief and are not on the open market. We can then target those homeowners, write letters to them, explaining who we are, that we are retained by the buyer and therefore don’t require a fee from them, and their home might be a match. This approach has resulted in several successful off-market acquisitions over the years for our clients, including this home in Dulwich.”
The Role of Buying Agents in Securing Discreet Property Opportunities
A buying agent’s value is based on their contacts book. Estate agents represent the interests of vendors. Buying agents, as the name suggests, act for buyers.
Once they have been briefed by a client they are able to go to their multiple contacts and find out about opportunities not visible on property portals. As well as homes being sold off-market this could include homes which are about to go on sale, and those which have been withdrawn from sale but which – for the right offer – the buyer might reconsider.
A great buying agent can get their clients in to view houses before anybody else has seen them, putting them in pole position to secure a deal. Camilla adds, “The team at Black Brick have over 100 years combined experience in the London and country property markets. The relationships we’ve built over two decades of being in business mean we are often the first call when someone is looking to sell.”
How Off-Market Deals Are Structured and Negotiated
Your buying agent will not only find you properties to look at. They will also accompany you on viewings to point out the pros and cons of the property and the neighbourhood.
With an encyclopaedic knowledge of local house prices, once you have found your perfect property, they will be able to advise you on its true value which means you don’t have to fear overpaying.
With a longstanding reputation to rely on they can vouch for your credentials as a buyer – confirming that you are serious about the purchase and have the funds to do so. This alone can be enough to persuade an owner to work with you.
During the negotiation process your buying agent will work to get you the very best price for your chosen property. This will include providing evidence of other recent sales, as well as proof of the cost of any work the property might need. Camilla comments, “Before we submit offers on properties for our clients, we look very carefully at values, collating relevant comparable sales data so our clients can quickly form a view on what would be a sensible price to pay for the property, and what wouldn’t. We also do due diligence on the seller, who they are, why they are looking to sell – understanding this is critical to a successful negotiation.”
Black Brick has strong contacts contractors and engineers to assess the property, as necessary, solicitors who can oversee your sale and, post-sale, can put you in touch with architects and interior designers if you want to put your own stamp on it. It is a truly end-to-end service.
Risks, Misconceptions, and What Buyers Should Watch For
Everybody knows that a property is a serious investment. Just like buying a piece of art or investing in stocks and shares, only real experts should undertake it without professional advice.
There are many risks involved with the process. Buyers going it alone may find themselves with a property that is blighted – perhaps by noise from underground train lines running beneath it, or because the building it is in is not well managed. This will have serious repercussions, both in terms of lifestyle and in terms of resale when the time comes.
The British buying system is complex, and slow, and international buyers would be forgiven for finding it impossible to navigate solo. An estate agent won’t even speak to you until your financial credentials have been proved, to comply with legislation designed to prevent fraud and money laundering.
The buying process will include commissioning, and interpreting, structural surveys, dealing with unusual, historic covenants, and investigating whether there are any plans for major building works nearby which could impact the property. Much can go wrong in this process, which takes an average of four months, and as a result almost a third of agreed sales in inner London fall through according to property analyst TwentyCi.
A fall through is an extremely rare occurrence for Black Brick, because it does so much research and due diligence before an offer is even made meaning that there are no nasty surprises awaiting its clients.