What's the Best Method to Sell Your Apartment or Mixed-Use Property: The Shotgun or Sniper Rifle Approach?

Triton Realty Group
Jun 27
4 min read

At Triton Realty Group, we understand that selling your investment property is a significant decision. Having successfully facilitated hundreds of multi-family and mixed-use property transactions in Chicago—both on-market and off-market—we know that each approach carries distinct advantages and disadvantages. As a property owner, understanding these unique differences is crucial before deciding which sales process is best suited for your asset.

The Shotgun Approach: On-Market Transactions

The more common method for selling real estate is the on-market sale. Here, an apartment building owner formally lists their property with a broker. Following a comprehensive market analysis, an asking price is typically established, and a formal listing agreement is signed.

Sophisticated marketing materials are then prepared, providing all essential information for potential buyers. The property gains widespread exposure through the listing broker's website and national databases such as LoopNet, CoStar, Crexi, and potentially the MLS. Simultaneously, the broker engages with key buyers and disseminates e-blasts to their extensive buyer network.

Over a strategic period, inquiries pour in, and the broker meticulously manages the process: fielding questions, arranging property tours, negotiating offers, and guiding the transaction to a successful close. The listing broker acts as a project manager, not only marketing the property and generating offers but also playing a pivotal role in ensuring the deal reaches completion. The primary advantage of on-market transactions is their ability to quickly and efficiently cover the entire market, aiming to ensure that any potential buyer for your property is aware of its availability.

On Market

Pros	Cons
Broad Market Exposure: Generates a large buyer pool (local and national), maximizing visibility.	Longer Commitment: Typically involves a longer-term listing agreement (e.g., six months).
Price Discovery: Provides psychological satisfaction, knowing the property was fully exposed to the market and likely yielded the highest possible offer.	Buyer Volume: Can lead to a higher volume of inquiries, including those from non-serious or unqualified buyers.
Competitive Bidding: Creates the potential for a bidding war among interested buyers.	Brokerage Fees: Requires payment of a sales commission, typically four to six percent of the sale price.

While an on-market approach can reveal your property's "true market value", this comes with certain costs: a significant sales commission and the time investment required to engage with multiple prospective buyers. Depending on your situation, this might not be the optimal approach. For example, some owners who have held their buildings for extended periods and fostered strong tenant relationships may prefer a sale process that avoids broad tenant notification and uncomfortable questions. Selling a property off-market has much less of an overall hassle and could provide a less stressful exit. You might want to consider an off market sale over a traditional on market transaction, because it is a strategic way to achieve a sale for a maximum value in minimum time.

The Sniper Rifle Approach: Off-Market Transactions

Off-market transactions employ a highly targeted "sniper rifle" approach to selling. The objective is not broad market exposure, but rather to present the property to a select group of highly qualified, targeted buyers. In an off-market scenario, the broker's role is to strategically identify and engage with the "best fit" buyers for that specific property, rather than the entire market.

While a fee agreement between the property owner and the broker is typically still signed, there is no formal "listing" agreement. Property tours are scheduled discreetly with only the most interested parties. This approach significantly reduces the volume of questions and answers, minimizes disruptions from random buyers and contractors, and prevents rumors about the sale from circulating, which could negatively impact resident and/or vendor relationships. Ultimately, the owner engages with a highly vetted buyer, eliminating much of the hassle associated with an on-market listing.

Let's consider the pros and cons of utilizing the off-market approach:

Off Market

Pros	Cons
Discreet Process: Minimizes tenant disruption throughout the sale.	Limited Market Reach: Less overall market exposure due to targeted marketing.
Qualified Buyers: Reduces engagement with non-serious or unqualified buyers.	Perceived Missed Opportunity: Some sellers may feel they left money on the table by not exposing the deal to the broadest market.
No Listing Agreement: Offers flexibility without a formal listing commitment.
Seller Control: Provides greater flexibility to dictate the sale terms.
Potential Commission Savings: In some cases, there's a possibility of reducing or eliminating sales commission.
Enhanced Privacy: Maintains confidentiality of the transaction.

Understanding Off Market Pricing

There's a common misconception that off-market transactions inherently result in a discounted price for the buyer. This is generally not the case. In today's market, off-market transactions typically command market value or even a premium. This is because market pricing for similar properties often dictates final sale prices, and there's a recognized premium associated with exclusivity and the absence of competition for the deal. Most property owners initiating an off-market deal expect to receive at least what the market would pay, or even higher, for their asset. The off-market method offers a discreet path to sale, but not necessarily at a lower price than what would be achieved on the open market.

Making an Informed Decision

Your apartment or mixed-use building is a valuable asset, and the decision of how to sell it should be well-informed. Seeking professional advice from an experienced multi-family real estate broker is paramount.

At Triton Realty Group, we are expertly equipped and highly experienced in executing sales using both the "sniper rifle" (off-market) and "shotgun" (on-market) approaches. We work closely with our clients to determine the best strategy to achieve their specific goals.

Ready to discuss your property? Contact us today.