A Real Estate Agent just came over?...

our next door neighbour is selling their house.

their real estate agent just knocked on my door and tells me that next door have just had a really strong offer on their house. the couple is from melbourne and they have a mother in law that lives in a different suburb in Adelaide.

this couple from melbourne want to buy next door's house, but they/mother in law also want to buy my house so they can get their relative to move in.

he asked me what i thought of the idea.

i said: "I'm not actively looking to sell, but I'm not against the idea, but of course the number has to be right. if they came in with a strong offer, id consider it"

as it turns out we are looking at selling in the next 6-12 months.

he then tells me that even if wasn't to sell now, they'd be very very interested in getting some legal documents signed where they had "first option" on the house. i asked him what this meant, he said that it meant that if/when i decided to sell the house before it even went on the market, this 3rd party would be given the option to buy my house. i could stipulate what the price was etc but they'd be given the first option to buy. i dont think the price is pre-determined etc.

anyway, quite coincidental as we are looking at buying a new house to move in to.

anyone got any thoughts or advice on this?

what is the advantage I have in signing this "first option" contract with another potential buyer? I presume the main advantage is potentially getting a good offer on your house without having to go through the normal selling process and wait times that can come along with that?

What questions should I be asking or what stipulations should in such a contract?
 
id simply say,

bring me your best offer in writing, and if im happy with it, ill sign whatever documents you need me to
 
Yeah....jack the price of your house up by 50%.....that's the min price. You gotta pay a premium if ya wanna live next to relos..lol....1st option will then be guaranteed!
 
Is your house in an area where there is lots of developing going on? Sounds like a good spin for a developer to pick up a few adjoining properties.

I could be wrong, but be weary of such approach unless you can verify in fact it is a little old lady and a genuine story.

pinkboy
 
Thanks for the advice guys. Much appreciated.

We live in Wayville, Adelaide.

We are actually looking to sell relatively soon so being able to get a good price for the house without the worry and time associated with the normal selling process would be really good.

if we were to go down the "first option" path, do people normally pay a price for this privilege?
 
Is your house in an area where there is lots of developing going on? Sounds like a good spin for a developer to pick up a few adjoining properties.

I could be wrong, but be weary of such approach unless you can verify in fact it is a little old lady and a genuine story.

pinkboy

Have a solicitor review the agreement before committing to it.

Could be just an REA with a deceptive method of getting listings.

Cheers

Jamie

Good comments here. Many people would just get caught up in the hype of a possible quick sale.
 
johnpendles;1224512We live in Wayville said:
Maaaaaaate,you live in one of the closest and sought after areas of Adelaide.When your ready to sell,the buyers will be beating at your door.I think the agent is full of Cr@p.
 
our next door neighbour is selling their house.

this couple from melbourne want to buy next door's house, but they/mother in law also want to buy my house so they can get their relative to move in.

They never watched Everybody Loves Raymond did they?

Relos would drive you absolutely mad within a day.
 
Do some reading up on options.

I think you will find that there will be a price. Buyers sign options where they think the price will rise and/or they want to tie up a few properties (say for development). Once you sign one they ave the choice as to whether to buy it. From what I've read they have the advantage. Unless the price is very high I can't see why you would want to sign one.

From the sounds of it I'd say the agent will get you and your neighbour to sign then sell the option to a developer.
 
Get your place valued by a few REAs, then decide what you want to sell it for and let the REA who visited know.

They might not want to pay that much and then you decide if you want to go to the open market.
 
what is the advantage I have in signing this "first option" contract with another potential buyer? I presume the main advantage is potentially getting a good offer on your house without having to go through the normal selling process and wait times that can come along with that?

What questions should I be asking or what stipulations should in such a contract?

Firstly, don't believe the story about the granny. It could be a developer who wants 2 properties side by side. It oculd be the agent just trying to get you signed up - and granny will disappear.

There is little benefit for you selling an option to purchase. The benefit is they do not purchase and you keep the property and the option fee. Make sure the option fee is worth your while if this were to happen.

The benefit is with the purchaser. He can sit back and wait. If he wants to buy he can, if he doesn't he doesn't have to. You are being tied up. Also there is a risk the market will jump and you will be selling lower than market price at the time - but this will depend on the terms.
 
Is your house in an area where there is lots of developing going on? Sounds like a good spin for a developer to pick up a few adjoining properties.

Most probably this is it.

We have a sub-dividable property and if we buy the next house we will gain one additional lot. I should try this granny idea :p
 
Is your house in an area where there is lots of developing going on? Sounds like a good spin for a developer to pick up a few adjoining properties.

I could be wrong, but be weary of such approach unless you can verify in fact it is a little old lady and a genuine story.

pinkboy

This was my first thought.

Is there an added value (development potential) by owning two neighboring properties?

Use this information to negotiate on an appropriate price.
 
If you have further conversations with the agent and can satisfy yourself that he is telling the truth, then avoid signing up an Option contract as others have said. You might be better of agreeing to give the intending purchaser "first right of refusal" instead. See a good property lawyer.
 
First right of refusal and if they are willing to pay a premium for the purchase if they're willing to proceed when the time comes, so be it.
 
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