Developer is Interested

Hello

Just wondering if anybody here would please be able to help with some advice or...link me to some threads on this great forum that would provide me with some reading material regarding a situation that i may be facing soon.

This is the situation briefly...

I own one IP (2bdr unit) in a block of 6.
All the owners are being approached by a developer who has initiated negotiations to buy out the entire block so their development next door to our building can expand.

It is very early days at the moment but I am wanting to prepare myself for this situation so I am ready if/when the time comes to negotiate a good buy out deal for myself.

I had intended to hold onto this IP for a good 20 years or more, in the hope that the situation at hand, would present itself 20 years further down the track. Also, I will be a first time Seller in this situation.

I understand that it will take all the owners to agree before things will progress.

At this point I'm just looking for reading material or other people's experience in handling a situation like this.

Thanks for any advice, I tried to search for some case studies on here unsuccessfully and please feel free to move this thread if I have posted in the wrong section.

Best of luck to everyone out there :)
 
I understand that it will take all the owners to agree before things will progress.

yes, hold out to be the very last person who sells and then ask a ridiculous amount for yours, or at least 20% more than the average price the others sold out for.. good luck with it.
 
yes, hold out to be the very last person who sells and then ask a ridiculous amount for yours, or at least 20% more than the average price the others sold out for.. good luck with it.

I would be a bit careful with this. Family we know had a prime spot in Surfers Paradise. Over the years all around them people were getting great prices for their little little houses as developers bought them up for high rises.

This family held tight, wanting more money than they were being offered.

Eventually, they had high rise beside them, behind them and because they held out for too long and for too much money, they ended up completely surrounded by high rise with them as one little lonely house which, by that time, and was not worth anywhere as much as they had probably been offered because it was now a little house on a small block completely hemmed in by towers.

I know your situation is different, but if one or more owners hold out too long, your developer might just say "too hard, I'll work around the problem".
 
Yep thanks wylie, I've heard your advice before and it accompanied the same situation of what you described up in Surfers Paradise also.

I'm concerned about the boundaries of how far it can be pushed, before it's considered unreasonable and thus loosing what 'may' be a good opportunity.
 
Why don't you let them make a first move/offer.

Speak with the other owners and see how they have gone in negotiations.

You could even possibly run a simple feasability on the project and works backwards to see what their go or no go price would be. There would be plenty of assumptions but could refine as more knowledge on the intended project comes to hand.

Best of luck though - sounds like a great situation to be in (if you are happy sell now and not in 20 years time).
 
Could you hold a meeting with the other owners & come up with a price that suits you all? That way, you're negotiating as one, but with perhaps more power as you have all unit owners looking out for each other?
 
The other thing I would mention is that with the block we have contracted to sell (not settled yet) it was looked at by two developers and lots of families looking for a big block.

The family that bought it paid $85K more than one developer was prepared to pay and $45K more than the second one.

Developers work to a figure and don't buy on emotion. You may just find your neighbouring developer isn't prepared to pay you as much as you will be hoping for. He is looking at his bottom line and how much profit there is (nothing wrong with that) and will only pay so much before it becomes unprofitable to him.
 
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