The current transaction process makes it difficult and expensive to buy and sell commercial real estate.
Issues with Brokered Transactions
Selecting a broker, negotiating their fee, and getting them educated on your property is a time consuming headache, and you end up doing most of the transaction work anyway.
Lack of Control
Ceding control of the transaction process to a broker, who's incentivized to “just get a deal done,” can lead to a conflict of interest and a lack of transparency that may impact your return.
Fees Impact Returns
Every dollar used to pay percentage-based fees is equity capital that is no longer available for investment to generate a return for you and your investors.
Listed properties that are overexposed to the entire universe by brokerage firms, coupled with lengthy beauty contests and public auctions, limit interest from qualified buyers.
Issues with Auction Sites
No due diligence period, non-negotiable purchase agreements, compressed timelines limit a bidders ability to properly underwrite a deal and offer the best price. Prudent Bidders will always offer a lower purchase price to offset higher risk.
Lack of Transparency
Have you ever wondered who you are bidding against? It could be the Seller! Real estate auction sites often allow the Seller to participate in the bidding process to artificially drive up to price.
The "Buyer’s Premium" fee that auction sites charge is added to the purchase price and is just another transaction fee that Sellers incur, as it results in lower bid amounts received on the property.
Buyers have to agree to unfavorable and non-negotiable terms to bid, face a lack of transparency during the bidding, then pay a hefty fee. The result is Sellers may get the highest price from a pool of "bottom feeders".
Benefits of OffMarket
By reducing the number of parties involved, direct transactions between Buyers and Sellers streamline the deal process from start to finish.
Communication is direct and information is unfiltered, enhancing the transparency for Principals throughout the deal process.
No Transaction Costs
No matter how many deals you do on OffMarket, you'll never pay a transaction fee, real estate commission or buyer's premium.
Properties that are purchased “off-market,” directly from the owner without beauty contests or public auctions, attract quality buyers as they are more desirable and difficult to find.