An off-market sale is when a property is sold privately and is not publicly advertised. Transactions are done by exclusive agents through direct outreach or word of mouth. Some properties are sold off-market because owners don't want the stress of bidding wars and want absolute privacy while making the transaction. A fully marketed process is more advertised and generates more bids at a higher price than the market value. An off-market deal, on the other hand, is offered privately and quickly, and trades away between 5% and 10% more in value. Off-market deals make sense when the seller controls the information. They work against the seller if the buyer does. A common misconception is that an off-market deal means you're getting a better deal. Most owners think that making deals without brokers and avoiding a public process saves money and lets them profit more.

Example: A landlord in the South Bronx gets a call from a developer who heard through a broker contact that the owner might be open to selling. They meet, negotiate quietly over six weeks, and agree on a price of $3.8 million — no listing, no marketing, no competing offers. The deal closes in 60 days, the owner avoids tenant disruption, and the developer gets a site they needed to complete an assemblage they'd been building for two years.