Off-market homes: how homes are sold before public listing

You may therefore hear about the home through an estate agent's (ejendomsmægler) buyer register (køberkartotek) before it goes public, or without it ever reaching the open market.

That does not change the fact that you need to understand the home's documents, the financing and the purchase agreement (købsaftale). An off-market home is a market term, not a shortcut around the ordinary property transaction.

In brief

• An off-market home is also called an off-market sale (skuffesalg), a discreet sale or an off-market property.
• The home is not marketed widely, but is typically shown to selected buyers through a buyer register.^[1]
• An off-market home is not a separate legal type of transaction with its own rules for buyers.
• Limited exposure means you may have less public market data on interest in that particular home.
• You should still go through the sales listing (salgsopstilling), reports, easements (servitutter), finances and purchase agreement.
• The estate agent represents the seller, also when the home is sold discreetly.
• If several buyers are to submit bids by a shared deadline, ask whether this is a formal bidding round (budrunde).

What is an off-market home?

An off-market home is a home that is not advertised widely on property portals or in ordinary marketing.

Instead, the agent can present it to buyers who have already said what they are looking for. This can happen through:

• A buyer register
• Direct contact from the agent
• The agent's local network
• A limited preview

Boligsiden describes an off-market sale as a home that is not publicly advertised but is held by the local agent and offered through the buyer register.^[1]

Some homes later come onto the open market. Others are sold in the limited process.

An off-market home is not a special legal category

The terms off-market home and off-market sale describe the way the home is marketed.

They do not mean that the documents, the purchase agreement or the buyer's safety net disappear. The purchase agreement is still the parties' contract on price, handover and other terms.^[2]

You should therefore distinguish between:

• How you found the home
• How the seller chooses to negotiate
• Which document you are asked to sign
• When an offer or an agreement can become binding

A home can be off-market and later end up in a bidding round. They are two different descriptions of the process.

How buyers get access to off-market homes

The most common route is to register in one or more agents' buyer registers.

The agent will typically ask about:

• Area
• Type of home
• Price level
• Size and number of rooms
• Preferred handover date
• How far you have got with your financing

The more precisely you describe your search criteria, the easier it is to see whether a home is a match.

There is no guarantee that you will see every home before others do. Each agent has their own register and their own portfolio, and the seller decides how the home is to be offered.

Get the material before you assess the home

When a home has not yet been publicly advertised, the material may be less complete at first contact.

That does not mean you have to decide without documentation.

Ask for the material relevant to the type of home, for example:

• Sales listing
• Property data report (ejendomsdatarapport)
• Land register (tingbog) and easements
• Condition report (tilstandsrapport) and electrical installation report (elinstallationsrapport) when buying a house
• Energy label (energimærke)
• Insurance quote and information on the Danish home inspection scheme (huseftersynsordningen)
• Owners' association (ejerforening) documents for an owner-occupied flat (ejerlejlighed)
• Building and housing register data (BBR)
• Information on known plans or circumstances

If the documents are not ready yet, you can note what you are missing and when you will get it.

Also read BoligKlar's guide to documents when buying a home.

Is the price lower for an off-market home?

Not necessarily.

Limited marketing does not in itself tell you whether the price is high or low. The seller may choose an off-market sale for reasons of privacy, timing or the wish for a more limited process.

As a buyer, you can compare with:

• Recent sales in the area
• The home's condition and location
• Price per square metre for relevant comparisons
• Expected renovation costs
• The home's ongoing owner costs (ejerudgift)

A public asking price is not proof of market value either. The same applies to a price you are given for an off-market home.

Bids and negotiation on an off-market home

The seller is free to choose whether an offer is accepted, rejected or leads to further negotiation.^[3]

If you are asked to submit a bid, get clarity on:

• Whether there are other interested parties
• Whether the process is an ordinary negotiation or a formal bidding round
• When the offer expires
• Which conditions are included in the offer
• Which handover day (overtagelsesdag) is wanted
• When the document can become binding

The agent must pass purchase offers on to the seller, but continues to represent the seller's interests.^[4]

If several buyers submit bids by a shared deadline, you can read the full guide on bidding rounds when buying a home.

Adviser and bank conditions still apply

It may feel as if you have to react faster because the home is not publicly for sale. But speed does not change the consequences of a signature.

An adviser condition (rådgiverforbehold) can give you the chance to have the transaction reviewed within the agreed deadline. A bank condition (bankforbehold) makes the agreement subject to approval of the financing.

They are different from the statutory right of withdrawal (fortrydelsesret), which is normally six working days against payment of 1 per cent of the purchase price.^[2]

Read more about lawyer and bank conditions.

The estate agent's role

The estate agent is the seller's representative.

The agent must carry out the assignment with due care and observe good estate agency practice, but is not the buyer's adviser.^[5]

This means the agent can give you information and handle the sales process, while you yourself have to decide:

• Whether the home fits your budget
• Whether the documents need a closer review
• Which conditions you need
• Whether the proposed handover date works for you
• Who should advise you on the agreement

Checklist before you go further with an off-market home

• Have I received the home's address and key information in writing?
• Do I know why and for how long the home is being sold off-market?
• Have I received the sales listing and relevant reports?
• Are any documents missing that will only come later?
• Have I compared price and condition with relevant sales?
• Does the home fit my overall purchase budget?
• Do I know whether other buyers are taking part in the process?
• Is it an ordinary negotiation or a formal bidding round?
• Are the handover day and the included fixtures and fittings described?
• Are the adviser and bank conditions clear?
• Do I know when my offer can become binding?

Common misunderstandings

An off-market home is secret from everyone else

Not necessarily. The home may have been shown to several buyers or mentioned in the agent's network, even though it is not on the big portals.

The price is automatically lower

No. Limited marketing does not in itself say anything about how attractive the price is.

The documents can wait

No. The same key aspects of the home and the purchase agreement still need to be looked into.

The agent is also the buyer's adviser

No. The agent represents the seller.

An off-market home is the same as a bidding round

No. Off-market describes the marketing. A bidding round describes the way several bids are collected.

Quick access requires a bid without conditions

No. A condition can be important for getting the financing and documents assessed. The consequences of leaving it out must be understood before you sign.

In summary

An off-market home gives you access to a home that is not marketed widely. It does not give you a different set of rules for the purchase itself.

Get the documents, compare the price, know your budget, and find out whether the process is an ordinary negotiation or a formal bidding round.

If several buyers are involved, you can continue in the guide on bidding rounds, binding bids and conditions.

BoligKlar gives you a second pair of eyes and an overview. The specific agreement and the home's documents must be assessed on the basis of the individual transaction.

Frequently asked questions