Property experts warn against off-market holiday buying risks

Property buyers have been urged to exercise caution when considering off-market purchases during the Christmas period, when traditional listings typically decline.

The Real Estate Buyers Agents Association of Australia (REBAA) has warned that buyers might be tempted to pursue off-market properties without proper consideration of the risks.

REBAA President Melinda Jennison said buyers needed to look beyond the perceived exclusivity of off-market listings.

“Off-market properties can become an appealing option for buyers who are finding limited choices on major real estate portals,” she said.

Jennison warned that some buyers were paying premiums for off-market properties to prevent public listings.

“It’s driven by the perception that acting quickly will keep the property out of reach for others, leading some buyers to offer more upfront,” she said.

The association noted a rise in new buyers’ agents marketing exclusive access to off-market properties.

“The reality is that oftentimes these ‘opportunities’ are overpriced B- or C-grade properties presenting as exceptional finds,” Jennison said.

She questioned the logic of off-market sales in undersupplied markets like Perth, Adelaide and Brisbane, where open market competition could drive higher prices.

REBAA members consider the entire property market when searching for clients, rather than focusing solely on off-market opportunities.

Jennison emphasised that thorough due diligence remained essential for all property purchases.

“The method of sale, or whether a property is on or off-market, should not be the sole determinant of its suitability and value,” she said.