Invest
Is a ‘good price, minimum hassle’ mentality a bad idea?
Vendors are at risk of underselling their properties due to the emerging “off-market” sales trend – and it’s by as much as 5 per cent, according to a real estate CEO.
Is a ‘good price, minimum hassle’ mentality a bad idea?
Vendors are at risk of underselling their properties due to the emerging “off-market” sales trend – and it’s by as much as 5 per cent, according to a real estate CEO.
Starr Partners CEO Douglas Driscoll has expressed the belief that “it’s not inconceivable that some people could be underselling their homes by as much as 5 per cent, which on a $1 million property – the median price of a property in Sydney – is a significant $50,000”.
Off-market sales usually describe properties that are put up for sale without being advertised on major property portals.
It’s a growing trend, according to Mr Driscoll, as real estate agents get savvier about leveraging their own buyer databases.
Not only is the term misleading to vendors, it’s causing some agents to adopt a “good price, minimum hassle” mentality, the CEO said.
“Technically speaking, there’s no such thing as an off-market property – in fact, it’s an oxymoron,” Mr Driscoll commented.
“Many agents use the term when describing a property that is being covertly marketed, and it’s time we stop that.”
He highlighted that the moment an agent promotes a property in any way that may be taken to indicate it’s for sale, “the property is very much on market”.
According to the CEO, a more appropriate term for the trend would be “marketed quietly”.
He highlights how “traditionally, a lot of high-end homes in affluent areas tend to sell ‘off-market’ as they target a niche buyer audience”.
“However, as of late, we’ve seen this extend to outer suburbs and moderately priced properties, which for me is a concern,” the realtor commented.
He noted that some property owners are being told by agents that if they sell “off-market”, they can save on vendor-paid advertising (VPA).
While this might be true, Mr Driscoll said they are at risk of not creating enough competition for their property.
While for all agents leveraging their databases, he highlighted that “they typically only represent a cross-section of the buying population”.
He is of the belief that the increasing popularity of such “off-market” sales – could potentially be “an early death knell for VPA”.
“The more these agents continue on the path of solely relying on their buyer databases, the more they’re at risk of forgetting about latent buyers.”
According to the CEO, “VPA is known to achieve the best price for vendors, regardless of market conditions”.
Potential sellers and vendors alike need to comprehend that VPA “is an investment, not a cost”, he concluded.
RELATED ARTICLES
About the author
About the author
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more
Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more
Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more
Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more
Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more
Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more
Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more
Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more
Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more
Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more
Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more
