Off-market property deals get a lot of attention in the investment world. The idea is appealing: a property that is not on Rightmove, fewer buyers competing for it and, potentially, a chance to secure something at a better price.
We source both on-market and off-market properties for our clients, and from our experience there can certainly be advantages to buying off-market. But we would never say that an off-market property is automatically a better investment.
When we present an off-market opportunity, the buyer’s fee needs to be justified. That means looking at the value of the property, the checks already completed and what the buyer gains from purchasing through us.
We have sourced very good properties directly through landlords and local contacts, but we have also secured strong investments through estate agents and the open market. The important thing is whether the overall deal works.
What Is an Off-Market Property Deal?
An off-market property is a property being offered for sale without being openly advertised on the main property portals.
There can be lots of reasons for this. A landlord may want to sell without disrupting an existing tenant. Someone with a portfolio may prefer to deal directly with another investor. A seller might want a quicker or more straightforward transaction, or a local agent may know of a suitable property before it is advertised.
Through our off-market investment sales service, we deal with landlords looking to sell buy-to-lets, HMOs and investment properties directly to other investors.
For buyers, access to these deals tends to come from relationships built with landlords, developers, local agents and other people working in the market. That is also why using a company specialising in property sourcing in Leeds can open up opportunities that an investor searching online alone may not see.
However, the fact that a property is off-market does not, by itself, tell you whether it is a good deal. You still need to understand the price, costs, risks and likely returns.
Are Off-Market Properties Cheaper?
They can be, but there is no guarantee across the wider market.
Some sellers value certainty, speed or convenience and may be prepared to agree a price that reflects that. Others know exactly what their property is worth and are simply choosing not to advertise it publicly.
For the off-market properties we offer, we would normally expect the price to compare favourably with similar on-market opportunities. The purchaser pays an off-market fee, so there needs to be a clear reason why the investment is worthwhile once that fee and the other purchase costs have been included.
Occasionally, a property may be unusual, rarely available or particularly well suited to a buyer’s requirements. In those circumstances, the appeal may be exclusive access and avoiding wider competition, rather than a substantial discount.
Either way, we assess the property carefully:
- What have similar properties actually sold for?
- What is the realistic rent?
- What work needs doing, and what will it cost?
- Are there any planning, licensing or compliance issues?
- What does the return look like after the fee and other costs are included?
We have bought and sold tenanted properties off-market where rents were below the current market level, or where there were maintenance or compliance issues to resolve. That does not necessarily make the property a bad investment.
What matters is identifying those issues before the purchase, working out the realistic cost of dealing with them and making sure the numbers still work.
A property being £10,000 cheaper than a comparable house is not much use if you discover £20,000 of work that was never included in your calculations.
What Should the Off-Market Fee Cover?
The fee should reflect more than simply being introduced to a property that is not listed online.
Before we send an off-market opportunity to our clients, we will have assessed its investment potential. Depending on the property, that includes reviewing the planning position, likely works costs, rental projections, capital value and overall return on investment.
We want to present a compelling investment proposition, with a clear explanation of the opportunity and any issues that need addressing.
This preparation can also help the seller. An attractive offer does not always lead to a completed sale. A lender’s valuation may come in below the agreed price, a survey may identify significant defects, or planning and compliance issues may emerge later. These can lead to renegotiation or the buyer withdrawing.
By investigating the property earlier and allowing for known issues in the figures, we aim to reduce avoidable surprises for both parties. The objective is a price that works for the seller’s circumstances and makes sense for the investor.
These checks help reduce uncertainty, but they do not replace the buyer’s legal advice, survey or lender’s assessment.
What Are the Benefits of Buying Off-Market?
One of the clearest benefits can be reduced competition. If a property has not been advertised to the whole market, you may avoid competing against multiple buyers. That can make the process more straightforward and sometimes gives more room for sensible negotiations.
There can also be more flexibility. When one landlord is selling directly to another investor, both sides usually understand the type of information that is needed. That could include rental history, tenancy details, compliance documents, access for surveys or a realistic understanding of work that needs doing.
Having that information reviewed before an opportunity is presented can help buyers make a more informed decision and may make the purchase process smoother.
Off-market deals can include opportunities that may never reach the portals at all, including tenanted properties, HMOs and portfolio sales. We share suitable opportunities through our Investor Club where appropriate.
However, we would never advise someone to proceed simply because a deal is described as exclusive. The value and the due diligence still need to justify the purchase.
Why We Still Buy Properties From the Open Market
There is sometimes an assumption that the best investments are hidden away and that anything listed on Rightmove has already been seen by everyone.
In reality, some very good deals come through the open market.
A property may have been badly marketed. It might need refurbishment that puts off owner-occupiers. The seller may become more flexible after several weeks or months, or the asking price may simply have been set too high initially.
We monitor new listings, price reductions and properties that have been sitting on the market alongside opportunities that come through our own network.
Whichever route a property comes through, we assess whether it works as an investment.
How Do We Compare the Two?
The same basic checks apply.
The purchase price is the obvious starting point, but we also look at comparable sales in the immediate area. Any sourcing or off-market fee needs to be included when comparing the total cost of different opportunities.
In Leeds, local knowledge matters. A postcode alone does not tell you enough. Different neighbourhoods can perform very differently and, in some cases, there can be a noticeable difference between one street and another.
We covered this in more detail in our article on working with a local property expert in Leeds.
The achievable rent also needs to be realistic. We would rather work from evidence of what similar properties are actually letting for than take the highest advertised rent online and build an investment case around that.
Then there is the property itself. Does it need a light refresh or a full refurbishment? Are the boiler, electrics, kitchen and bathroom likely to need replacing? Are there compliance works? How long will the project take before the property can be let?
Where work is needed, we put realistic costs against the property refurbishment rather than relying on a rough allowance. The budget also needs room for unexpected work and any period without rental income.
All of those costs affect the return.
Yield Is Useful, but ROI Tells You More
Headline rental yield is a useful starting point, but it should not be the only figure used to judge an investment.
Gross yield compares the annual rent with the purchase price. It does not account for the buyer’s fee, purchase costs, refurbishment, finance, maintenance, management or periods without rental income.
A property with an attractive headline yield can deliver a disappointing return once those costs are included. A lower-yielding property may suit an investor better if it offers more consistent tenant demand, fewer maintenance requirements or stronger prospects for long-term capital growth. None of those outcomes should be assumed without checking the evidence.
When comparing opportunities, we look at the total money being invested and the expected return after realistic costs. We also consider how the figures would change if the refurbishment ran over budget, the property took longer to let or the achievable rent was lower than expected.
City-wide averages can provide context, but they cannot tell you whether an individual property is a good purchase. The house, street, condition and local tenant market all matter.
Does Off-Market Mean Less Risk?
The off-market label alone does not make a property less risky. What can reduce uncertainty is the quality of the investigation carried out before a buyer commits.
For a tenanted property, we want to understand the rent actually being paid, the tenancy arrangements, payment history, maintenance requirements and available compliance documents. Buying with a tenant already in place can provide continuity, but those details still need checking.
Our guide to buying a property with tenants in situ in Leeds explains the practical considerations in more detail.
For an HMO, the review also needs to consider the planning position, applicable licensing requirements, room sizes, fire safety and whether the intended use is viable. Requirements depend on the property and its circumstances, so assumptions should be checked before purchase.
Where refurbishment is needed, the scope, budget and timescale should be clear. Any permissions or approvals required for the proposed work also need to be investigated.
Our early assessment helps identify issues and build them into the investment figures. It does not remove every risk or replace the work of the buyer’s solicitor, surveyor or mortgage lender.
Finding the property is only the beginning. Understanding what you are buying and what it will cost to bring it into the condition you need is just as important.
So, Are Off-Market Deals Better?
Some of the strongest opportunities we have found have come through our own network. Others have been advertised openly through estate agents.
Off-market access can mean less competition, more direct discussions with the seller and the chance to consider a property before it reaches a wider audience. But those advantages only matter if the investment itself makes sense.
For the opportunities we present, the buyer’s fee needs to be supported by the investment merits and the preparation already completed. We would not circulate a property simply because it was available off-market.
We look at the purchase price, total acquisition costs, realistic rent, local demand, condition, refurbishment requirements, compliance position and potential return. Where capital growth forms part of the strategy, we assess its prospects without treating it as guaranteed.
The aim is to find the right investment for the buyer’s objectives, whichever route it comes through.
Frequently Asked Questions
Are off-market properties cheaper than properties on Rightmove?
Sometimes, but being off-market does not guarantee a discount. We would normally expect the off-market opportunities we offer to compare favourably with similar properties on the open market, allowing for the buyer’s fee and other costs. For an unusual or rarely available property, the benefit may instead be exclusive access and reduced competition.
How do investors find off-market property deals in Leeds?
Off-market opportunities often come through relationships with landlords, local agents, developers and property sourcing companies. Investors can also join our Investor Club to hear about suitable opportunities when they become available. Any property should still be assessed against the buyer’s budget, objectives and required return.
Is an off-market property a better investment?
It can be, but the route to market does not determine the quality of the investment. Compare the total purchase costs, likely rent, refurbishment, ongoing expenses and risks with other available properties. An on-market property may offer a better overall return than an off-market alternative.
What should an off-market property fee cover?
The fee should reflect the service provided and the value of the opportunity. Before presenting a property, we assess its investment potential, including the planning position, likely works costs, rental projections, capital value and expected return where relevant. Buyers should understand what is included in the fee and allow for it when comparing investments.
Looking for an Investment Property in Leeds?
We help investors assess both on-market and off-market opportunities, with local knowledge and realistic figures to support their decisions.
Contact Property Elevate to discuss your requirements, or join our Investor Club to hear about suitable investment opportunities.