What is an assignment property listing?

The real estate market can be puzzling, especially when dealing with an assignment property listing. It's a term that often confuses buyers and sellers. Essentially, it involves the sale of an existing contract, which are often pre-construction or pre-sale properties before completion. The challenge is navigating this complex process and understanding its implications. This blog simplifies these intricacies, guiding you through the world of assignment listings in real estate, helping you make informed decisions.

What is an Assignment Listing?

‍An assignment listing refers to a unique type of real estate transaction. Instead of buying the property itself, you're purchasing the original buyer's contract with the developer in a pre-construction project. This means you essentially step into the original buyer's shoes to complete the purchase.

Why Can't Assignment Listings Be Found on the MLS?

‍Assignment listings often don't appear on the MLS (Multiple Listing Service®) because they are not standard property sales. They involve the transfer of a contract, not the direct sale of a physical property, which doesn't align with traditional MLS listings. Furthermore, the owner of the property, often a builder, needs to authorize the marketing of the assignment properties on MLS®. Oftentimes, the builders do not want to list the assignments on MLS® as they are inconsistent with their existing marketing and pricing for the development.

Why Would Someone List an Assignment?

‍Sellers might list an assignment due to changes in their circumstances, such as financial shifts or life changes, preventing them from completing the purchase; or as an investment strategy. It allows them to transfer their obligation without the penalties of breaking a contract.

Why Would Someone Buy an Assignment Listing?

‍Buying an assignment can be advantageous. Buyers often get a chance to purchase a new property that can’t be found anywhere else. Depending on the market, assignment listings can be listed at potentially lower price than current market rates. It's also a way to buy into developments that are otherwise sold out.

What Other Types of Off Market Properties Are There?

‍Besides assignment listings, other types of off-market properties include exclusive listings, coming soon listings, and for-sale-by-owner listings. Each serves a unique purpose and caters to different needs in the real estate market.

Understanding an assignment property listing is key in the dynamic real estate market. Whether you're a buyer or seller, knowing the ins and outs of such transactions can open up new opportunities and pathways for property ownership and investment.