What Are Off-Market Properties?

Disclaimer: This article is for informational purposes only. PropStream does not provide legal, compliance, or financial advice. Real estate professionals are responsible for understanding outreach rules, NAR’s Clear Cooperation Policy, and the risks or profits tied to off-market transactions. Always do your due diligence before taking action.

In real estate, the most competitive deals rarely stay listed for long.

Agents and investors who rely solely on the MLS or wait for opportunities to approach them often find themselves in bidding wars, chasing after properties that everyone else is already pursuing. That’s why many professionals turn to off-market properties—a powerful lead source that can open the door to exclusive opportunities, higher margins, and stronger client relationships.

In this article, we’ll break down what off-market properties are, why they’re so valuable to real estate professionals, and how you can find them using both traditional strategies and modern tools like PropStream.

What Are Off-Market Properties?

Off-market properties are properties that are not actively listed for sale on the Multiple Listing Service (MLS). Unlike standard listings, these homes aren’t visible to the general public or other agents searching the MLS.

It’s important to note that “off-market” can mean several things:

• Truly Off-Market: Properties where the owners haven’t listed the home for sale but may be open to offers.
• Pocket Listings: Homes represented by an agent but kept off the MLS, often shared only with a select group of buyers.
• Expired or Withdrawn Listings: Homes that were once on the MLS but are no longer actively listed.

Related: 5 Reasons to Pursue Expired Listings as an Agent

Common examples of off-market properties that could offer lead potential include:

• Distressed homeowners facing foreclosure.
• Owners of inherited properties who aren’t sure what to do next.
• Long-term landlords who are tired of managing rentals.
• Seniors who may be interested in downsizing but haven’t listed their home.

Because these properties aren’t widely marketed, they represent a unique opportunity for professionals willing to do the extra work to uncover them.

Why Do Real Estate Professionals Pursue Off-Market Properties?

Off-market leads are attractive for both real estate agents and investors, but the reasons differ depending on their goals and business models.

Benefits for Agents

First Access to Listings
Getting in front of homeowners before they officially decide to list gives agents the jump on valuable opportunities.

Instead of competing with dozens of other agents once the property hits the MLS, agents can build relationships early and secure the listing. This not only helps agents grow their portfolio of listings but also shortens the sales cycle.

Relationship Building
Many off-market property owners are in a stage of consideration—they may be thinking about selling but haven’t committed yet. Approaching these homeowners with empathy and offering solutions (such as a comparative market analysis or guidance on timing) positions an agent as a trusted advisor rather than a pushy salesperson. This trust often translates into stronger, longer-term client relationships.

Competitive Advantage
In highly saturated markets, every agent is competing for the same pool of visible listings. By incorporating off-market real estate leads into their strategies, agents can differentiate themselves from peers and present unique opportunities to buyers.

Having access to off-market properties also enhances an agent’s reputation as someone with “insider” knowledge, making them more appealing to both sellers and buyers.

Benefits for Investors

Less Competition, Better Pricing
One of the most prominent challenges investors face on the MLS is overpaying due to multiple offers.

Off-market properties typically have fewer competing buyers, which allows investors to negotiate from a stronger position. This often results in better purchase prices and more favorable terms.

Exclusive Opportunities
Direct communication with property owners means investors can explore creative deal structures that aren’t possible in traditional MLS transactions.

For example, they might negotiate seller financing, lease options, or cash-for-keys agreements. These unique strategies often benefit both parties and allow investors to secure deals that others never even see.

Related: What Is OPM in Real Estate Investing?

For example, a wholesaler can pass the deal to another buyer for a healthy assignment fee, a flipper can renovate and resell with higher returns, and a buy-and-hold investor can start with built-in equity. These advantages make off-market deals some of the most lucrative opportunities in real estate investing.

For both groups (agents and investors), the ultimate appeal lies in the element of exclusivity—being first in line for deals or opportunities others aren’t aware of yet.

How to Find Off-Market Properties

Finding off-market properties takes a proactive approach.

Instead of waiting for listings to appear, professionals must actively seek out potential sellers. There are two main categories of sourcing: traditional and data-driven.

Traditional Methods

• Driving for Dollars: Physically scouting neighborhoods to identify distressed or vacant properties.
• Networking and Referrals: Building relationships with attorneys, contractors, or other professionals who may know property owners ready to sell.
• Direct Mail Campaigns: Sending letters or postcards to homeowners.

These methods can work, but often require much time and persistence. Additionally, without using data to decide where to focus your energy, you could end up wasting a significant amount of time and money with little return on investment.

Data-Driven Methods

Technology has made sourcing off-market leads far more efficient and accessible for real estate professionals at any stage in their careers.

Platforms like PropStream give agents and investors access to nationwide property data, including ownership details, mortgage information, equity, and signs of distress. A built-in filter menu makes it easy to comb through vast amounts of data to quickly find leads in your ideal demographic. Confirm lead qualification using PropStream’s AI datasets (powered by predictive analytics) to determine wholesale value, property condition, and foreclosure factor.

How To Build Your First PropStream Lead List in 5 Easy Steps

Step 1: Identify Your Search Region—To narrow your search, choose a zip code, city, or county.

Step 2: Find Sellers—Use one of our 20 premade Lead Lists and supporting filters to identify selling motivation.

Step 3: Save Your List—Once you’ve identified several leads and performed the necessary research, save them to a carefully labeled marketing list (e.g., “Failed Listings in Orange County, CA”).

Step 4: Automate Your Leads—Use our Lead Automator feature to send leads that match your search criteria straight to your inbox.

Step 5: Start Marketing—Perform a *skip trace to collect contact information before utilizing one of PropStream’s built-in marketing tools, such as email campaigns or postcards.

Best Practices for Connecting With Off-Market Property Leads

Sourcing is only the first step. Success in landing off-market properties also depends on how you approach homeowners.

Here are some tips to help you achieve the best outcome:

• Be Respectful and Professional: Many off-market owners aren’t actively thinking of selling. They may be grappling with the difficult decision to sell, so the last thing you want is to make them feel like you’re preying on their vulnerability. Approach them with sensitivity and position yourself as a resource rather than a salesperson.
• Focus on Problem-Solving: Off-market deals often involve motivated sellers facing challenges (foreclosure, probate, financial stress). Tailor your conversation to solving their specific needs and addressing roadblocks or pain points.
• Stay Compliant: Wholesaling laws, marketing regulations, and disclosure requirements vary by state and city. Always ensure your outreach and transactions follow local laws.
• Follow Up Consistently: Many off-market leads won’t convert immediately. A system of regular follow-up can turn “not interested right now” into a future deal.

By balancing persistence with professionalism, you’ll stand out as a trusted resource, which increases your chances of closing more off-market deals.

Off-Market Properties Can Help You Unlock a World of Opportunities—Let PropStream Help You Find Them

Off-market properties are one of the best resources for real estate professionals to uncover untapped opportunities.

Whether you’re an agent looking for more listings or an investor seeking better margins in a market driven by high interest rates and home prices, these properties offer exclusivity, negotiation flexibility, and the chance to get ahead of the competition.

With traditional methods like networking and driving for dollars, combined with advanced tools like PropStream, you can build a pipeline of off-market leads and consistently turn them into profitable deals.

*PropStream engages an independent third party to perform skip-tracing.