Off-market sales are a topic of contention in the realtor for Lake Geneva industry. It wasn’t always this way. But, like many things in 2022 that used to bother people, they bother people today. A handshake was all that was needed to sell a house to a neighbour in 2014. If you sell your house to someone today and it wasn’t listed on the outdated MLS, everyone loses their mind. You wouldn’t sell your house to anyone for what you want! These are the opinions of other people. Today I closed a lakefront off-market deal for $6M. An earlier off-market deal was closed for a much higher price. Two one-party transactions I closed last December were worth approximately $8M. The market’s question is: Why?

Open Door is the best way to answer this question. You can also learn more about Buyers. This is something I have written many times about. I believe the models are completely useless once the market stops. I believe Buyers work best in uniform markets like the American Southwest. A small pool, a rock yard, and a ranch of 1732 square feet made from cinderblock. I can do it! This is the market that buying operates in. buying works by allowing sellers to sell at a perceived discount in the market, providing them with the assurance of a good deal and a time that suits their needs. The concept consumes mundane markets, and the real estate authorities don’t seem to care. Direct broker sales are what they care about. They, at least, look almost identical to the Buyer sales. The only difference is that prices reflect values that match or exceed open-market pricing. A broker is involved and not an automated process fuelled by share holder money.

Lake Geneva has a very limited supply of lakefront inventory. This is something we all know. I pointed out last Wednesday that there are still eight lakefront properties available for sale in tight markets. None of them have pending contracts per MLS, even though I was later chastised. You wouldn’t be able to see the impact of a property’s days on the market if it has active properties. A house that sells within a day of being listed on the market usually receives its asking price or more. What if the property is on the market for more than a month? Two or five months? Do you think a buyer will come in and give the seller what they want. They can sometimes, yes. Real estate data is not supposed to play the Sometimes Game. It is supposed to be a game of chance, and older inventory will produce lower offers, lower prices, and eventually lower prints. This is common sense.

Direct deal-making is often a good option for sellers. There is a possibility that an open market sale will yield a higher price. This applies to any transaction, whether it is on or off the market. There is always the possibility that someone will pay more for something you have sold. This is how markets function. There is also the possibility that the market will reject the price. In this case, you may be forced to compensate for your insecure number by letting your house languish on the market and allowing the rumour mill to circulate (why isn’t my house selling?) Whisper, gasp, whisper. Your house will be open to weekend viewings by buyers who may or not be motivated or compelled to act. This can lead to price declines and increased market exposure. Many sellers prefer direct deals.