Sometimes, but not automatically. The most-quoted Australian study, PropTrack’s analysis of 2022 sales, found houses sold off-market fetched 4.3% less on average nationally than comparable houses listed on realestate.com.au. That is an average across thousands of sellers, not a discount any buyer is owed, and plenty of off-market homes sell at or above value.
So the honest answer to “is it better to buy off-market?” is that it can be, for reasons that have more to do with competition and terms than with price. This page sets out what the data actually says and the risks you take on. If you are still getting your bearings, read our guide to what off-market property is first; if you want to see how we approach off-market buying, that is on our main off-market page.
What did the PropTrack study actually measure?
PropTrack is the property data arm of REA Group, which runs realestate.com.au. Its 2023 report, Off-Market Sales Performance by senior economist Paul Ryan, matched state Valuer General sales records against realestate.com.au listings for 2022 and used a statistical model to compare prices.
Its headline figures for houses sold off-market, relative to comparable houses listed on realestate.com.au:
| Market | Average price gap, houses, 2022 |
|---|---|
| National | 4.3% lower |
| Sydney | 4.3% lower |
| Melbourne | 2.6% lower |
| Brisbane | 3.6% lower |
| Perth | 4.9% lower |
Units showed a smaller gap: 1.2% lower nationally, 2.8% in Sydney. Source: PropTrack, Off-Market Sales Performance 2023, also reported by the ABC.
City by city, we cover how off-market buying works in Sydney, Melbourne, Brisbane, Perth and Adelaide.
Why that number is not your discount
Four things about the study matter more than the headline.
It was written for sellers. The report’s conclusion is that vendors do better by listing online. That is a fair reading of the data, and it comes from the company that sells the listings. Neither point makes it wrong. Both are worth knowing.
“Off-market” meant “not on realestate.com.au”. The report defines an off-market sale as any sale it could not match to a realestate.com.au listing. That includes properties advertised exclusively on other platforms, and the report notes address matching is imperfect. Some of those “off-market” sales were advertised somewhere.
It covers one year, and an unusual one. The data is 2022, when price growth slowed quickly and fell in many areas. The report itself says the gap may be larger when buyer demand is strong and prices are rising, so treat 4.3% as one year’s reading, not a constant.
An average hides the spread. Some off-market sales went well under value because the vendor needed speed or privacy. Others went at full price or more. A 4.3% average tells you the channel tends to favour buyers. It does not tell you what the property in front of you is worth. Only comparable sales can do that; here is our guide to analysing comparable sales.
Where does any price advantage come from?
From the vendor’s situation, not the label. A vendor who needs certainty, privacy or a particular settlement date may trade some price for it. A vendor who simply wants to see what the property might fetch without a campaign often asks more, not less.
What off-market buying reliably changes is competition. With fewer buyers in the room there is no auction-day escalation and more room to negotiate on terms: settlement length, conditions, access. That is a genuine advantage. It is not a guaranteed discount, and property values can fall regardless of how you bought.
What are the risks of buying off-market?
The risks are mostly the same as any purchase. What changes is that the public campaign is no longer doing some of your checking for you.
| Risk | Why it is sharper off-market | What to check |
|---|---|---|
| Overpaying | No public competition sets the price, and the asking price may be untested | At least three recent comparable sales, adjusted for condition |
| A vendor testing the market | Some vendors go quiet first to fish for a high offer | Ask why the vendor is selling privately and how long it has been offered |
| Rushed due diligence | Deadlines like “the vendor wants it signed by Friday” are common | Your own building and pest inspection, never only the vendor’s report |
| Contract terms you have not read | Less time between offer and contract | A solicitor or conveyancer reviews the contract before you sign |
| Bank valuation below the price | Lenders value on comparable sales too; a gap can mean a bigger deposit | Speak to your broker before you commit; we do not give credit advice |
| Being outbid after agreeing a price | Until contracts are exchanged an agreed price may not bind the vendor, depending on the state | Know when your state makes the deal binding; see negotiating off-market |
| The market falls | Off-market buying does not protect you from a falling market | Buy on fundamentals you would accept on the open market |
The legal disclosure rules do not disappear because a property is unadvertised. More on the legal side of buying off-market.
When is the trade-off worth it?
It tends to suit buyers with a fixed brief (budget, location, property type, yield) who will walk away from anything outside it, because the lack of public price signals matters less when you do your own valuation. It suits time-poor and interstate investors who have someone independent inspecting and valuing for them. And in a heated market it can be a way to avoid auction-day prices that run ahead of the comparable sales.
It does not suit someone buying because “off-market” sounds exclusive, someone without finance approval or a solicitor ready, or anyone prepared to buy sight unseen without independent representation.
Five myths, briefly
- “Off-market property doesn’t really exist.” It does. Some is genuinely unadvertised; much is pre-market or database-only. See how to find off-market properties.
- “It’s all distressed or defective.” Privacy, tenanted sales, estates and relocations are ordinary reasons to sell quietly. Inspect anyway.
- “It’s only for insiders.” Anyone can register with agents and off-market portals. Insiders simply hear earlier.
- “It’s always cheaper.” See above. Sometimes; not automatically.
- “You can skip the checks because there’s no competition.” The opposite. With less public scrutiny, your own checks carry more weight.
Still want to buy off-market?
House Finder is a buyers agency acting for investors only. We source off-market property against a written brief, value it against comparable sales and negotiate for you. We are not financial advisers or mortgage brokers. If you want a straight answer on whether off-market makes sense for your brief, talk to us.
FAQ
Are off-market properties cheaper in Australia?
Not automatically. PropTrack’s study of 2022 sales found houses sold off-market fetched 4.3% less on average nationally than comparable houses listed on realestate.com.au. That is an average across many sellers, and individual off-market properties can be priced at or above market value.
Why do some off-market properties sell for less?
Usually because of the vendor’s circumstances. A vendor who values speed, privacy or certain settlement terms may accept less in exchange, and with fewer buyers competing there is less upward pressure on price.
Is it better to buy an off-market property?
It can be, mainly because there is less competition and more room to negotiate terms. It is not automatically better: the price still has to be checked against comparable sales, and the purchase still needs full due diligence.
What are the risks of buying off-market property?
Overpaying because there is no public price discovery, vendors testing an inflated price, rushed due diligence, contract terms reviewed in a hurry, a bank valuation below the purchase price, and the same market risk as any purchase. Property values can fall.
Can a seller accept my offer and then sell to someone else?
It depends on the state and the stage. In NSW, for example, the seller may keep negotiating with other buyers until contracts are exchanged, according to the NSW Government. Get advice from a solicitor or conveyancer in the state where you are buying.
How do I know if an off-market price is fair?
Compare it with at least three recent sales of similar properties nearby, adjusted for condition, land size and position. Do not rely on the asking price or the selling agent’s guide alone.
About the author. Written by Simon Loo of House Finder. Simon Loo won Buyers Agent of the Year, Residential Investment, at the Australian Buyers Agent Awards 2026. This article is general information. It is not financial, credit, legal or tax advice and does not take your circumstances into account.
