Finding the right home can be challenging, especially when the options on the MLS don’t quite match your needs.
But the search doesn’t have to stop there. Many homes never make it to public listings, yet they’re still available to buy—if you know where to look.
Whether you’re a first-time buyer or simply struggling to find the perfect property, exploring off-market opportunities can expand your options and help you land a home that fits your needs.
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Main strategies for finding off-market homes
A little creativity can go a long way. So here are a few strategies for finding off-market homes and getting ahead of the competition.
Check your home loan options today1. Network with real estate agents
Don’t wait until you’ve found a home to reach out to a real estate agent. They’re not only helpful for touring homes and creating the perfect offer—they can also help you find off-market opportunities.
Agents regularly network with other realtors, so they might know about soon-to-be-listed homes, as well as homes being sold privately, which allows you to avoid competition altogether.
Start by connecting with real estate agents in your circle (such as a family member, a neighbor, or even the spouse of a coworker), and let them know your interest in off-market opportunities.
Some sellers will accept strong offers before listing their homes, meaning you could find a property without the stress of a bidding war.
2. Leverage local connections
In addition to building a relationship with a realtor, don’t overlook the power of your local connections.
There’s a chance that someone in your family or a friend knows about a home that’s about to hit the market. In which case, they might be able to connect you with a seller.
Additionally, a casual conversation might lead to someone mentioning how they’re about to sell their home.
If it’s in your desired neighborhood and within your budget, this could be a chance to make an offer before they publicly list the property.
3. Explore auction and foreclosure markets
Another unique way to find housing in a tight market is to explore foreclosures and auctions. This is ideal if you’re looking for a deal and you’re open to making repairs or upgrades.
These homes are typically sold as is, meaning you may not have the opportunity to inspect them, and the seller is unlikely to fix any issues.
While this can sometimes lead to costly repairs, you might also find hidden gems in mint condition. Plus, these often have less competition, increasing your chances of securing the right home.
However, due diligence is crucial. Research liens, title issues, and the market before bidding. It’s also essential to work with an experienced real estate agent and attorney who are familiar with foreclosure properties and the auction process.
Additionally, be mindful that these purchases often require cash or preapproved financing, so you’ll need to have your funds in place beforehand.
4. Use real estate websites with off-market listings
Keep in mind that certain real estate websites may also feature off-market listings, giving you early access to homes before they’re listed on the MLS.
Talk to your realtor and ask whether Zillow or Realtor.com offers “Coming Soon” listings in your area. Since fewer buyers have access to these properties, you may have the opportunity to tour and make an offer with less competition.
If this option is available, check these websites regularly and set up alerts to be notified when a home that fits your criteria becomes available.
5. Look into new construction or pocket listings
If you’re considering new construction, this could be a great way to save money when buying a home.
While new construction homes are typically priced at market value, many builders offer incentives that can lower your out-of-pocket costs. These may include builder credits for customizations, special interest rate deals when using their preferred lender, or closing costs assistance.
Additionally, some builders may have unlisted properties (homes that were under contract but became available again due to a buyer backing out).
Ask your real estate agent about pocket listings as well, which are properties quietly marketed and not widely advertised. Since there’s often less competition in these areas, you may be able to find a home more quickly.
6. Drive through target neighborhoods
Another strategy is to drive through your desired neighborhood and look for homes for sale. Some sellers choose the For Sale by Owner route, meaning their home may not appear on the MLS.
Since these properties aren’t always widely advertised, this approach can help you find potential homes with less competition.
If you’re considering a For Sale by Owner purchase, it’s wise to have a real estate agent or at least a real estate attorney to help negotiate the contract. If you use your own agent, you may be able to ask the seller to increase the sale price by 3% to cover the agent’s commission.
Important considerations when buying off-market homes
While finding a home outside of the MLS can give you an edge in a competitive market, it’s important to proceed with caution and avoid rushing the purchase.
Time to make a move? Let us find the right mortgage for you1. Get a home inspection
Always, always, always get a home inspection. Even if it seems like you’ve found a hidden gem, there could be underlying issues that aren’t immediately visible.
A home inspector will assess the property for structural problems, faulty electrical systems, plumbing issues, and other hidden damage that could be costly. To protect yourself, consider making your offer contingent on a satisfactory home inspection.
2. Verify the home’s value
Similarly, it’s important to ensure you’re paying a fair price for the home. Just because a seller markets their off-market home as a bargain doesn’t mean it actually is. Keep in mind that your mortgage lender will schedule a home appraisal to determine whether the home is actually worth the asking price.
3. Understand the risks of off-market deals
Be mindful that negotiating directly with a home seller comes with its own challenges.
Without a real estate agent involved, the seller may overestimate the home’s value and set a higher price. Additionally, if they’re offering you first dibs, they might be unwilling to make any repairs.
Ultimately, you and the seller need to reach a deal that works for both of you—but that doesn’t mean settling for a bad investment. Likewise, it’s always wise to have a real estate agent working on your behalf.
The bottom line
Many home buyers rely on the MLS to find their next property, but it doesn’t always reflect the full range of available homes. That’s why thinking outside the box and exploring off-market opportunities can help you discover more listings and gain a competitive edge.
Before you start your search, explore your financing options and get preapproved so you can shop for a home with confidence.
