Have you ever considered looking for off-market properties for sale in your area? Finding off-market properties to purchase for short-term rentals can be extremely beneficial to hosts. In this article, we will discuss the benefits of buying off-market properties and provide tips on how to find off-market properties for sale to use as part of your short-term rental strategy.

Host Tools provides an automated, unified calendar for short-term rental hosts, allowing you to seamlessly list on all major channels. Start your free trial today! 

What are Off-Market Properties for Sale?

Off-market properties for sale are those that are not listed on the open market. This means that they are not available to the general public.

Instead, off-market properties are only available to a select few individuals who essentially have special connections. However, it is possible to find these special listings!

What are the Benefits of Off-Market Properties for Hosts?

There are several benefits to off-market properties for hosts:

Price

One of the biggest benefits is that off-market properties can be purchased at a lower price than those that are listed on the open market. This is because off-market properties are not exposed to the same level of competition as those that are listed on the open market. Additionally, some off-market properties may be in need of repairs, which can further reduce the purchase price.

Location

Another benefit of off-market properties is that they can be found in desirable areas. Sellers of off-market properties are not as concerned with getting the highest possible price for their property and are instead more interested in selling quickly. You can find sellers like this in all locations. 

Flexibility

Negotiating with owners of off-market properties is generally easier because there is less buying competition. You, as a buyer, have the advantage of time, as there is less pressure to close a deal before another buyer swoops in with a higher offer. Because of this, buyers can work with a more flexible timeline rather than focusing on beating out tens of other options in a short window of time.

How to Find Off-Market Properties for Sale

If you’re interested in learning how to find off-market properties for sale, there are a few things you can do:

Look for “For Sale By Owner” (FSBO) signs

These are often a good indicator that the owner is open to selling their property off-market. It can be financially beneficial to negotiate directly with the owner without the middleman of a real estate agent. 

Contact a real estate agent who specializes in off-market properties

These agents likely have a database of off-market properties that they can show you. However, they usually keep these properties on hand for their most serious investors. Start reaching out to prominent real estate agents in your area to form a relationship and show them that you are a serious contender for a good investment.

Look for probate listings

Probate listings are often good candidates for off-market sales because the heirs of the property may be more interested in selling quickly than getting the highest possible price.

Use a property search engine that includes off-market listings

These search engines will help you find off-market listings that match your criteria. Sites like Zillow, Craigslist, and eBay are popular sites for finding off-marketing listings.

 Network

Just like telling a recent graduate it is important to make connections; it’s important for new short-term rental hosts to network. You never know where a connection might lead. Reach out to local real estate brokers, contractors, sellers, investors, and even your friends. You never know “who knows somebody.” 

Bid at real estate auctions

You may think of auctions as an opportunity to sell off grandma’s nick-nacks, but real estate auctions are an excellent opportunity to browse properties. Oftentimes, hosts can find and purchase properties with tremendous short-term rental potential for a fraction of the price at a real estate auction. 

Take a drive

The real estate world has coined the phrase “drive for dollars.” This means a potential buyer spends some time perusing a neighborhood looking for signs of vacant properties or just properties they may be interested in purchasing.

Even if the home isn’t for sale, buyers should note the address and look up the owner’s contact information in the public records. From here, you can reach out and see if the owner would be open to selling.

Use social media and online clubs

Real estate investor clubs often have access to off-market listings that they share with their members. Get involved with these clubs, and follow their groups on social media.

Connect with the chamber of commerce

Check with your local chamber of commerce or board of realtors. They may have off-market listings that they can share with you.

Final Thoughts

While an off-market sale may not be the right choice in every situation, it’s definitely worth considering if you’re looking for a property for your short-term rental business. Remember that the advantages of purchasing an off-market property include flexible negotiation, less competition, and the potential to get a good deal. With some effort and research, you can find the perfect off-market property for your business!

Host Tools provides an automated, unified calendar for short-term rental hosts, allowing you to seamlessly list on all major channels. Start your free trial today!