What Does Off Market Mean on Realtor?
Unravel the meaning of "off-market" property status on Realtor.com. Gain clarity on this real estate term and its implications for buyers and sellers.
When searching for properties online, “active” or “pending” are common indicators of availability. However, the term “off-market” can appear on real estate platforms, creating confusion for those unfamiliar with its meaning. Understanding this status is important for anyone navigating real estate, as it signals a property’s current standing outside conventional public listing channels.
Understanding Off-Market Status
On platforms like Realtor.com, “off-market” typically indicates a property is not currently listed as “active” on the Multiple Listing Service (MLS). This means the property is not publicly available for offers or showings through traditional real estate channels. It signifies an inactive listing status on the primary database real estate professionals use, reflecting a temporary or indefinite removal from the active public market.
The MLS serves as the central hub for real estate agents to share property information and facilitate transactions. When a property is off-market, it has been removed from this database. This removal can be due to various reasons, and potential buyers cannot inquire about or schedule a showing through standard online search methods.
Reasons for Off-Market Status
Several distinct scenarios lead to a property being designated as “off-market.”
One common reason involves listings voluntarily withdrawn by the seller. This temporary removal from the MLS might occur if the seller needs to address personal circumstances, undertake significant repairs, or wishes to test market interest without full public exposure. Such properties can be reactivated on the MLS once the seller is ready.
Another scenario involves expired listings, where the contractual agreement between a seller and their real estate agent has concluded without the property being sold. If the seller does not renew or enter a new listing agreement, the property automatically moves to an off-market status. Similarly, “pre-market” or “coming soon” properties are also considered off-market. These homes are being prepared for an official MLS listing, undergoing staging, photography, or minor renovations, and are not yet available for public showings or offers.
“Pocket listings” or “quiet listings” represent another category. In these cases, a real estate agent markets a property exclusively to a select group of potential buyers without ever listing it on the MLS. This approach is often chosen for privacy reasons, to avoid public open houses, or to gauge initial interest before a wider release. Finally, a property might be temporarily removed from the market for non-sale-related reasons, such as extensive renovations, family matters requiring the property to be vacant, or other unforeseen circumstances.
Engaging with Off-Market Properties
For buyers interested in off-market properties, working with a well-connected real estate agent is a primary strategy. These agents often have extensive networks and can access information about properties not yet publicly listed, sometimes through direct communication with other agents or property owners. Agents may be aware of “pocket listings” or properties where sellers are considering a sale but have not formally listed. Leveraging an agent’s professional connections can uncover opportunities unavailable through general online searches.
Another approach for buyers involves direct outreach to property owners in desired neighborhoods. This method is less common for the general public and requires significant effort. This could include sending personalized letters of interest to homeowners, which might prompt a conversation about a potential sale. However, this strategy often yields a low response rate and does not guarantee a property is available or will be sold at a favorable price. Buyers should also ensure any direct communication adheres to local solicitation regulations.
Sellers might consider an off-market approach for various strategic reasons, such as maintaining privacy during the sale process or testing market interest without incurring significant marketing costs upfront. This method allows them to avoid the disruption of frequent showings and open houses. To facilitate an off-market sale, sellers typically work with an agent who specializes in such transactions, leveraging their client network or private listing services. These agents can discreetly present the property to qualified buyers, potentially leading to a quicker sale with less public exposure.