The Pros and Cons of Selling Off-Market Properties
Selling off-market properties can be an effective way for real estate agents to create inventory, particularly in low-supply markets. This strategy was especially common prior to the COVID era, notably around 2010, when competition for listings was fierce and housing supply continued to shrink.
Beginning in and after 2010, lawsuits emerged from sellers who claimed their homes were sold off-market without adequate exposure, resulting in what was commonly referred to as “money left on the table.” These cases were based on the argument that limited marketing restricted a property’s exposure to the broader buyer pool, preventing sellers from achieving the highest possible price and increasing liability for agents and brokers.
As a result of these lawsuits, selling agents are now required to have off-market sellers sign a written acknowledgment stating that selling off-market may result in “money left on the table.” This acknowledgment helps protect the selling agent and broker by confirming the seller’s informed consent and holding the broker harmless from future claims.
Off-market sales have recently increased in the Palm Springs area and surrounding cities despite higher inventory levels. In this environment, it is essential for agents and sellers to follow best practices, prioritizing transparency, disclosure, and informed decision-making.
With over 34 years of experience in real estate, I have learned that ethical and transparent business practices remain the foundation of long-term success—regardless of how appealing an off-market offer may seem. I stand by to offer any information/ideas/perspectives to you, your friends and your family as needed.