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Dropoffer Inc. Forecasts Increase In Off-Market Sales for 2023

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The off-market trend is lead by privacy and lack of inventory that fit clients needs

SALT LAKE CITY - Amzeal -- Drop Offer, Inc., a Real Estate technology company that allows users to find any home and submit an offer, forecasts a strong increase in off-market sales in the coming year. The trend of homeowners never listing their home on the Multiple Listings Service (MLS) happens more often than many know of and looks to be increasing as homeowner awareness and new technology make it more possible. According to the National Association of Realtors (NAR), off-market transactions are at the highest they have been since 2001.

"Off-market deals are an often overlooked part of the real estate business," said Kimani Clark, Co-Founder of Drop Offer, Inc. "The data shows that the majority of what buyers want from their agent is to help find them the perfect home. That means digging through the off-market and sourcing those houses. If an agent has the right tools to find those homes, their clients will value that effort more than anything else."

According to the National Association of Realtors®' 2022 Profile of Home Buyers and Sellers, only 86% of home sales hit the Multiple Listing Service in 2022. That leaves 14% using alternatives to sell their home. There are likely even more and are inputted into the MLS for statistical purposes only. Many times these transactions happen without anyone knowing. For example, Steph Curry sold his Silicon Valley Home for $31.2 million in the Fall of 2021, however it only recently surfaced and made the news in the Fall of 2022, allowing privacy for the high-profile client.

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"As of November 2022, there were 751k listings in the US. Assuming that number is only 86% of the total listings, this leaves over 100k sellers looking to sell their homes that are not currently on the open market or on a MLS service," explains Greg Burns, Co-Founder of DropOffer.  "DropOffer helps homeowners looking to sell their home in a more private and convenient manner while helping buyers find their perfect home."

The 751k homes on market represent less than 1% of the homes in the U.S. With this constraint, agents are continuously looking for ways to find new inventory, for their clients, and themselves. High-profile and high-earning real estate agent Josh Flagg, known for his role in Bravo's Million Dollar Listing, bought his recent home for $9.2 million, in an off-market transaction. After courting the owners, he was able to put a deal together for the Beverly Hills home.

Many other high end areas have very active off markets such as the Hamptons, or New York City, where The Wall Street Journal reported there was a total of $188 million in off-market sales in the city in 2021. One New York City agent stated off-market transactions were 40% of his business.

Below are several notable off-market deals around the country that took place this year:
  1. Montecito, California - $36 million. Seller: Ellen Degenerous
  2. New York City residence - $10 million. Seller: Marjorie Gubelmann
  3. Malibu, California - $45 million. Seller: Skincare businesswoman, Victoria Jackson
  4. Montecito, California -$9.1 million. Seller: Singer, Ariana Grande
  5. Montecito, California - a total of $17 million. Seller: Oprah Winfrey sold 2 homes

Behind the prediction

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DropOffer expects off-market volume to rise by 3.0% on average in 2023. Homeowners are more aware than ever to selling without ever having to list their home traditionally thanks to ibuyers spending hundreds of millions on marketing and educating consumers. Although 98% of the homeowners were often not pleased with the offered prices from ibuyers they did prefer the privacy, convenience and speed of the transaction. We also believe that inventory will tighten up again towards the later part of the year as builders slow and buyer demand will increase.

To learn more about buying, selling or dropping an offer, visit dropoffer.com or download the app in the App Store.

About DropOffer:
DropOffer is the nation's first automated "Off-Market" real estate-focused app expanding consumer home search options by helping turn the Off-Market ON. The DropOffer app empowers top-performing agents and their clients to submit offers automatically to off-market homeowners using real-time data. DropOffer's patent-pending technology allows users to find any home not currently on the market and with just a click of a button, gain access to property information, data-backed home valuations, and the ability to submit offers directly to homeowners. For more information, visit https://dropoffer.com/.

Source: DropOffer
Filed Under: Technology

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