How to make an unsolicited offer on an adjoining property with development potential?

Discussion in 'The Buying/Selling Process' started by HBU, 13th Apr, 2015.

  1. HBU

    HBU Member

    Joined:
    13th Apr, 2015
    Messages:
    3
    Location:
    SYDNEY
    Hi, first time poster and long time lurker. I've had a lot of fun reading the discussions on this property forum and have learned a lot about investing and finding oppurtunities.

    I am currently facing a bit of a dilemma. I have three houses in a Sydney suburb which have been rezoned for high density housing since I bought them. My problem is that I have an owner occupier in between my three properties and I want to know how to properly approach them with an offer. Do I use a local real estate agent or a buyers agent or do I make an offer myself and how? What are some negotiating tactics I can use to make this a "win win" for both myself and neighbour?

    As a development site it would have potential for 40+ apartments + retail.

    My goal is to buy my neighbour out with a view of developing in the future.

    All advice is greatly appreciated! :)
     
  2. Gockie

    Gockie Life loving Big 4 Banker

    Joined:
    15th Sep, 2011
    Messages:
    288
    Location:
    Northern Sydney
    You can write them a nice handwritten letter and post it to them. Say something like I love your house.... Blah blah blah.

    Or, talk to them face to face and see their thoughts on selling. If need be, offer over market value. Or propose to do a joint sale with all yours and spilt profits. If sold together the properties are worth $2 mill each, whereas as single properties there'd be worth 500k, I'd share the profits as a win-win.
    Plenty of dollars to go round, and good feelings. Rather than, my neighbour screwed me over....
     
  3. willair

    willair xx

    Joined:
    23rd Jan, 2003
    Messages:
    6,850
    Media:
    3
    Location:
    fibro humpy..
    "IF",you already control 3 then it would be no problem to control the 4th,myself I would not use any agent ba's ect,stay in the background through a company-abn what ever, and use a skilled Solicitor to draft a simper letter asking if the would like to sell, simple question 50/50 the rest is just imagination,don't let the title holders know who you are,those that need to know,know,,the rest don't need to know anything..imho..
     
  4. evan1875

    evan1875 Member

    Joined:
    26th Sep, 2010
    Messages:
    305
    Location:
    melbourne
    This is like Monopoly in real life! Not many people end up in that position! May I ask if you had been planning these acquisitions?

    But it is a big project @ 40+ and mixed use. Very big $ needed and presales etc. Do you have the means to take it to completion? If it is your intention to sell the site maybe it is easier to approach the neighbour. They might not have the incentive to sell if they don't know that they are sitting on a gold mine. But anyone will sell for the right price.

    The put it on the market and split the profit. Less hassle and risks.
     
  5. Propertunity

    Propertunity Real Estate Buyers Agent

    Joined:
    1st Jul, 2008
    Messages:
    9,698
    Media:
    1
    Location:
    NSW Central Coast, Sydney, Newcastle and Lower Hunter
    If you know the neighbor well enough, then make a personal approach over the back fence or at the front door.

    If you don't then consider using a buyers agent (declare my biased view here). If you approach it wrongly, then you can burn the relationship and get no-where for years. You need to find out their intentions without violating their emotional attachment to their home - and a professional is trained to do that.