As you begin your search for a home, you may have come across the term "silent auction." What does it actually mean? Silent sales refer to the sale of homes that are not publicly advertised. This means they are not listed on Funda, NVM Realtors or other real estate websites (or in newspapers). Nor is there a sign in the yard. Instead, they are marketed by word of mouth or exclusively to a select group of potential buyers. In this article, we explore what a silent auction is, why it exists and how to find homes sold through this route.
What is silent selling?
Silent selling is a common practice in the Dutch housing market, especially for high-end homes that require discretion. It allows sellers to keep their homes off the public market while still finding potential buyers through personal networks or real estate agents. Silent sales can additionally be a way for sellers to test the market and see what kind of offers they get without committing to a public sale.
Within homeup's network we have an exclusive housing offer. You can check our exclusive housing offer for starters here.
Why does silent selling exist?
There are several reasons why sellers opt for silent sales. Here are the main reasons for a silent sale:
- Privacy
- Exclusivity
- Market Testing
- Quick sale
Below we briefly explain them.
1. Privacy
Sellers sometimes want to maintain their privacy and avoid having many strangers walking through their home during viewings. Silent sales result in fewer viewings.
2. Exclusivity
Silent sales can give the home an exclusive image and generate interest among a selective group of buyers. This is especially seen with higher-end homes. With these types of homes, a discreet sale is desirable in order to maintain the exclusive character.
3. Market Testing
Sellers can also test the market through a silent auction. By initiating a silent auction, sellers can get an idea of what the home is worth. If your home is for sale with a small group of active home seekers, you can gauge interest and make an offer. If necessary, you can later still sell your house via the usual route with more sales channels.
4. Quick sale
Sometimes sellers want to sell their home and are in a hurry to do so for personal or financial reasons, for example. Silent sales are always faster than public sales. At homeup, we always sell homes within two weeks and often even within five days!
Do you want to conduct a silent sale of a home that is ideal for first-time buyers? Then we will be happy to help you quickly and free of charge. We sell your home for a fixed price that we determine with an appraisal. Check out our page for sellers here.
How do I find homes selling in the silent auction?
Finding homes for sale on the quiet can be challenging, but it's not impossible. Here are some ways to get started:
#1 Ask around in your personal network
If you are looking to buy a home, ask friends, family and colleagues if they know anyone who wants to sell their home. It may be that someone in your network already knows of a home that fits your situation.
#2 Engage a real estate agent
Many real estate agents have a network of sellers who are selling their homes through silent sales. This way, real estate agents have insight into which new homes are for sale. As a result, a real estate agent can also help you right away and inform you of homes that are on silent auction.
#3 Search online
Although homes sold through silent auction are not publicly advertised, there are still some online platforms where you can find them. These platforms offer exclusive access to homes that are not publicly advertised for sale.
Within the platform of homeup, you can find an exclusive offer of houses especially for starters.
#4 Check local real estate ads
Although silent sales do not always involve newspaper or magazine ads, you can still try looking at local real estate ads. There are still sellers who want to advertise their property in local newspapers. They may also be looking for a quick sale and do not want to take the time to hire a real estate agent.
#5 Visit open houses
Although quiet sale homes are not publicly advertised, you can still try to visit open houses. When you are at an open house, you can ask the seller if they have any other homes that are not on the market.
Frequently asked questions about silent sales
Silent sales are an interesting phenomenon in the Dutch housing market, which can benefit both sellers and buyers. We can imagine that you still have questions. We have selected and listed the most frequently asked questions regarding silent sales of homes for you.
What is silent selling?
Silent sale refers to the sale of a property without public advertisements or listing on regular sales channels such as Funda. The property is discreetly offered to a select group of potential buyers through their own networks and real estate agents.
Why do sellers choose silent sales?
Sellers often choose silent sales to protect their privacy, to give the property an exclusive image, to do market testing with no strings attached, or to achieve a quick sale without public attention.
How can I find a home in the silent auction?
There are several routes how you can find homes for silent auction. For example, you can use your personal network. You can also choose to engage a real estate agent and use his professional network of real estate agents. Another common option is to contact buyers and realtors during an open house period. This is a good time to talk to sellers or realtors about housing offers that are not yet on the market.
What are the benefits of silent sales for buyers?
Buyers have the primary advantage of having less competition from the general public. After all, the property is not publicly advertised and in all likelihood came to you through a real estate agent.
In addition, it is a way for buyers to discover unique or exclusive homes that are not yet known within the housing market.
Are there any disadvantages to silent sales?
The question is sometimes asked, does silent selling really work? Yes, there are plenty of examples of successful silent sales. But there can also be disadvantages to a silent sale.
This is because due to the exclusivity of a silent auction, the general public does not know which home is for sale. As a result, you may miss a large group of active home seekers and serious interested parties who may be interested in purchasing your home.
In addition, the eventual sale of a home in the quiet sale may incur additional costs because a specialized real estate agent will be engaged. If you are planning to offer your home for sale on the quiet, it is wise to carefully plan for any unforeseen costs in advance.
How can I estimate the value of a home in a silent auction?
One concrete option is to request a free valuation of your current home. There are several real estate agents who can help you with this.
In addition, you always have the option of searching online for tools that can help you compare homes in the area.
What is the negotiation process for silent sales?
The negotiation process can differ from a regular sale. You usually negotiate directly with the seller or through the appropriate real estate agent. It's important to be well prepared, do your research and possibly hire an experienced real estate agent for guidance.
Can I get a mortgage for a home in foreclosure?
Yes, obtaining a mortgage for a home in a quiet sale works the same as for a regular home. It is important to make sure all documentation and appraisals are in order, and to contact your mortgage lender in advance.
What happens if the silent auction is not successful?
If the silent auction is not successful, the seller may decide to still publicly advertise the property. This can increase visibility and attract a wider group of buyers.
Should I use a real estate agent for silent sales?
No, it is not compulsory to use a real estate agent when selling your home quietly. Nevertheless, it may be wise to use an estate agent. Realtors often have a professional network that gives them knowledge of the local market. For example, if you are interested in a silent auction in Friesland, it is advisable to contact local real estate agents who specialize in this region.
