Why are Off-Market Property Sales so Significant in Prime London?
Updated: Aug 18, 2022
Around 25% of London properties priced above £1m are sold privately off-market. Furthermore as capital values increase, the proportion of homes sold privately also increases. For example we estimate c50% of properties priced above £5m are sold off-market, with the figure rising to c65% over £10m and c80% over £20m.
There are numerous reasons why Vendors choose to sell off-market including:
Security and privacy: At the upper end of the market Vendors are often reluctant to have the contents of their house and their floor plan displayed on property portals for the world to see. Vendors also recognise that prospective buyers may also not want their future home advertised in the same way.
Testing the market: In a difficult market Vendors sometimes like to test their asking price privately, without the negative publicity of subsequently reducing the price in the open market.
Personal reasons: Often Vendors are reluctant to have their property publicly advertised for personal reasons. Recent examples of this include a vendor in Notting Hill who agreed to take up a new role in New York. Selling privately meant he avoided any embarrassing questions from his boss or fellow employees. Another example were the owners of a large family home in Belgravia. Here the property had been in the family for generations and the owners wanted to avoid revealing to relatives and close friends they needed to sell. Selling privately meant they could say they had an offer that was “just too good to refuse”.
To avoid overexposure in seasonally weak periods: For those Vendors wanting to sell their property in the seasonally poor periods of December, January, July and August, it is often a good idea to market privately during these times and then launch fresh on the open market in the busier periods.
If you would like to find out how we can help you access such a significant part of the market or want off-market sales advice, feel free to get in touch with Ludgrove.
Fraser Slater
Ludgrove Property
43 Berkeley Square
Mayfair
London W1J 5AP
Tel: 0207 889 2860
Email: info@ludgroveproperty.com
Twitter: @LudgroveP
Disclaimer: Ludgrove Property Limited is not authorised or regulated by the Financial Conduct Authority (FCA) and we do not provide any financial or investment advice. We recommend that any property investor seeks appropriate professional advice before entering into any contract, and we would also advise that the value of any investment can go down as well as up and that you might not get back what you put in. You may have difficulty selling a property investment at a reasonable price and in some circumstances it might be difficult to sell at any price. We would urge you not to invest unless you have carefully thought about whether you can afford it and whether it is right for you, and if necessary to consult with a professional advisor in accordance with the Financial Services and Markets Act 2000. All information is provided strictly as a guide only, is subject to change without prior notice and does not constitute an offer of investment. This website should not be regarded as an offer or solicitation to conduct investment business, as defined by the Financial Services and Markets Act 2000. Investors who are resident in or citizens of countries other than the United Kingdom may be subject to local restrictions. In particular, no offer or invitation is made to any US persons (being residents of the United States of America or partnerships or corporations organised under the laws of the United States of America or any state, territory or possession thereof), who are excluded from the services offered in this site. The information on this website has been obtained from sources which we believe to be reliable and accurate, but without further investigation this cannot be warranted.