How To Find Homes That Aren't Yet On The Market

No matter where you live, you've surely seen the house on the block that seems to sell out of nowhere, with no open houses, no showings, and no sign in the front yard. And yet somehow, suddenly, the home changes hands. For buyers, finding homes that have not yet come onto the market can provide a great opportunity to find an ideal home in a highly competitive market. Learning how to find these homes and capitalize on these opportunities can mean getting a great deal on the right property. If you're asking "how can I find homes that aren't yet on the market," keeping a few simple strategies in mind can help you find a great deal.

Why Do Sellers Sell Homes Without A Public Listing?

It may seem counterintuitive to think about a home being sold without a public listing, especially in a hot market. After all, if homes are receiving multiple offers and selling for over list price, why avoid the process and sell without listing on the Multiple Listing Service (MLS)? It turns out that sellers have a few good reasons to favor "pocket" listings - that is, listings off the MLS.

First, entertaining offers without placing their home on the MLS can be a way for a seller to test the market without going through the hassle of listing their home. If a seller has a particular price in mind, a private listing can allow them to see whether the market will be responsive without the hassle and risk of a formal listing. After all, if a property sits unsold for 30 or 60 days, the home may be perceived as less desirable. Privately assessing the market allows a seller a more confidential opportunity to test the waters. During this time, if the seller's target price is met, they may simply opt for a quick sale rather than trying to maximize return.

Non-public sales can also be a way to generate serious interest in a property. After all, if a sale is "secret," the property may be seen as more desirable, and potential offers may be more serious than in a public process. Looky-lous and casual bidders are less likely to do the legwork necessary to find these non-public opportunities, meaning that the process is fraught with less potential for sales that fail during the escrow process.

The Best Way To Find Non-Public Listings Is By Talking To A Knowledgeable Agent

Knowledgeable local real estate agents and brokers are by far the best resource if you're seeking properties that are not yet on the market. Although there are limits on most agents' ability to maintain private listings, most agents keep in touch with those clients they've worked with in the past, and they may often have some insight into which of their clients might be interested in testing the market or selling for the right offer. These opportunities may not even be with sellers who are currently contemplating a home sale — someone who might be thinking about selling but not for a year or two might be swayed by a particularly attractive offer. A well-connected agent will know which of their contacts and clients might be open to hearing cold offers on their properties, and will also be able to help assist you in thinking about the type of offer that might sway a potential seller.

Baird & Warner agents have some other resources at their disposal as well that the general public does not. Baird & Warner agents are in offices with dozens, or hundreds of other agents who are actively helping their clients to buy and sell homes. They are part of a network of thousands of Baird & Warner agents across the Chicagoland area. They speak to one another on a daily basis, share stories and analyses of the market, and promote their upcoming listings. These agents have greater insights into what is right around the corner than anyone shopping for a home. 

Finally, while most of the homes on the MLS are public-facing, and are syndicated to real estate websites across the Internet, agents have access to something called the Private Listing Network, or PLN. The PLN contains numerous properties that are "Pre-MLS", that is, getting ready to be listed to the general public. 

Direct Mail Marketing

Although this may seem aggressive, sending letters directly to the owners of properties that interest you is a low-risk way to test sellers' willingness to entertain offers. This is a common tactic employed by real estate investors, and can be a relatively inexpensive way to access homeowners who might be willing to sell under the right circumstances. 

Talk To Members Of The Community

Many private home sales are initiated through old-fashioned word of mouth: a neighbor who knows of someone who's thinking of selling but isn't sure if the interest will be there, or a local business owner with a rental property who might be tempted by the right offer. Getting to know the communities you're interested in and reaching out to friends, family members, or even acquaintances can be a great way to learn about potential sales that might not be obvious through other sources. This method has the added benefit of allowing potential buyers to learn more about communities they're considering, and can be a great way to meet new neighbors and get involved in community projects.

Internet Research

Checking for-sale-by-owner (FSBO) listings on public sites such as Craigslist or others, checking community message boards, and even looking at or placing classified ads can also be a way to reach out to potential sellers and let them know of your interest. These methods are often successful, but do carry some risk — potential buyers should be wary of scams and false listings, and should make sure they're doing their homework and consulting with professionals, including local agents, to make sure they're not falling prey to an unscrupulous listing. Further, while home buyers may perceive a FSBO is selling without an agent in order to avoid some commission, many are willing to cooperate (that includes compensation) with real estate agents who have interested buyers. Afterall, the overwhelming majority of buyers are working with an agent. Home buyers should always pursue their future home, on or off the MLS, with the help of a licensed professional. 

Shouldn't Buying a Home Be Easier? 

Finding pocket listings can be a difficult task, but a Baird & Warner agent can make the process easier. As the largest independent and locally owned real estate brokerage in Chicagoland, Baird & Warner is home to thousands of the most highly skilled real estate professionals in the area. Our brokers are hyperlocal experts who know just what it takes to prepare, market, and sell your home, while helping you navigate the process with ease at every step of the way. With mortgage and title services in-house and innovative partners who are as committed to giving clients the best possible service as we are… It's just easier here.