All Topics / Help Needed! / Best way to buy neighbours property??

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  • Profile photo of JLtarraJLtarra
    Join Date: 2004
    Post Count: 90

    Hi All,

    Just wondering if anyone has any tips on approaching a neighbour about buying their property.  She is an elderly resident and I would like to ask her if she was ever to think of selling to sell direct to me.  I would obviously like to be diplomatic about it but not sure how to initially start the conversation about it.


    Profile photo of sapphire101sapphire101
    Join Date: 2006
    Post Count: 203

    Just ask her. You'll find out soon enough. Maybe tell her your plan briefly and then ask so she understands your reasons for wanting the property. Sit down over a cup of tea perhaps, when the conversation can be brought up and discussed in more detail than when chatting over the fence.
    "Hi ______, do you mind if I ask you something? In the future I would like to ………… and I was wondering if you ever think of selling your house, could you let me know first, because I will buy it off you and save you all the hassle and costs of organising an agent to do it. Plus I could settle very quickly and save a lot of worry. If you do sell, would that be of help to you? "

    She probably has relatives she is leaving the place to if she intends on staying till the end but even so, your offer to purchase no matter what is a way to make the sale process for her or relatives as easy as possible.

    You will save her $10-$20k in real estate agent fees at the least + advertising costs of a few thousand.
    You will save her the emotional drain of organising the whole process.
    You will save her the indignity and hassle of having to vacate the house everytime there is an open house.
    You will save her the worry of time for a sale to occur.

    There are many benefits to the owner so make sure they are aware of each one. And if you agree to a fair and reasonable price, say based on a current valuation then she has that surety as well.

    If you are serious about buying the neighbourhood, offer $500 for first right of purchase to your neighbours left, right and behind and have a small agreement written up, with receipt of the cash transaction. $1500 is a small price to pay to ensure you own everything around you, eventually.

    Profile photo of KlahKlah
    Join Date: 2010
    Post Count: 40

    Tip 1/ Be friendly when you approach her.
    Tip 2/ Don't top visiting her. If you do she will feel used and less likely to contact you when she does want to sell. She may also let her friends know you are looking buying giving you more opportunities.
    Tip 3/ Offer a cheap rent back deal or even free rent if you really want it.

    My guess is that you are looking to buy her block to develop on. If so it might be worth cutting her in on the deal!

    Profile photo of Jamie MooreJamie Moore
    Join Date: 2010
    Post Count: 5,069

    Aim for the win-win. As somone mentioned above, the savings involved by not using a realestate agent may be attractive. Are you planning on keeping this as an IP? If so (and you're not planning on knocking it down) you could, as touched on above, rent it back to her. To give comfort you could offer a long lease.

    Jamie Moore | Pass Go Home Loans Pty Ltd
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of sonyasalsonyasal
    Join Date: 2008
    Post Count: 421

    Make sure that everything is done 'above board' don't try to rip her or her family off. If you have known her for a while and have actually been 'neighbourly' she may be more receptive, than if you are just 'business oriented' and have had no previous contact or conversations with her.

    May also be good to speak with her when her family are present so that they can be advocates for her and for them to be reassured that their mother is not being taken advantage of. As mentioned above be a 'genuine' neighbour so that she doesn't feel used, especially if this has been her home for a long time. Her decision will probably be more sentimental than practical/financial. if you approach this in the wrong way you may be frozen out of any future sale of the property.

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