An off-market transaction is a real estate sale without a traditional bidding process. Only a selected group of potential investors can take the opportunity to inspect the transaction details. This approach is efficient and effective for certain property sales. If the potential buyer is interested in buying and if an agreement can be reached on the price, the real estate transaction is usually carried out quickly and confidentially: In most cases, little information about the sale is made public.
If no agreement is reached on the purchase price, the seller still has the option of a more complex bidding process. It is more difficult the other way around, because after a structured bidding process, the property was on the market for a long time, interested parties could become cautious and / or the property could appear to be a problem property.
Going off-market is not always the best option. Some investors cannot carry out an off-market deal due to audit security. And sellers who have to prove to their shareholders that the highest possible sales proceeds have been achieved have no choice in the bidding process. Otherwise the liability risk would be too great.
