We are looking at 5 subdivided blocks in East Melb to build on for our PPOR. Two of the blocks are 400m2 the other three are 350m2 (and one has an inactive easement in it). We are interested in one of the larger ones however our builder has had a look and can give us a design for any of the blocks. However the designs of the smaller blocks are more expensive. Our due diligence suggest the bigger block is worth 350-360k. Vendor wants 375k each- yep regardless of size. NOT negotiable. Have been up for 2 months with nil sales. Vendor 'doesn't care if it takes over a year to sell them, he's not budging on price'. The problem is, the other blocks in the area are larger and therefore more expensive. We can't afford them even though they are better value compared. They are also in various states of sloping and some are battle-axe. The 5 above are flat to the naked eye. We have 90days till the settlement of our current house. So I guess my question is, should we wait and hope something else comes up? Has anyone dealt with stubborn vendors like this? Any tips? (emotionally I love the land, but I'm trying very hard not to be emotional!) Also the house next door to the vacant land (4bd) just sold for 880k. Shocked. Thanks guys!!
Land. Giving the vendor what they want?
- Thread starter sinead
- Start date
If the value is $360k and he is asking $375k that is only $15k difference
If it's a matter of affordability then you could suggest that the vendor finances part of the $375k asking price. You could even suggest that he finances the whole purchase price and then you refinance after you build. This may suit him as you say he is prepared to wait.
Bottom line is be creative to get the deal done.
Cheers
If it's a matter of affordability then you could suggest that the vendor finances part of the $375k asking price. You could even suggest that he finances the whole purchase price and then you refinance after you build. This may suit him as you say he is prepared to wait.
Bottom line is be creative to get the deal done.
Cheers
Pinkboy, Andy have you two been getting knock backs in Victoria? Was that bike ride a disguise for a buying trip?
If that's the case, move on. So be it, you will find something else. They might come crawling back in 6mths, but don't hold out on it.
Haha, no property recon. To busy taking in the beautiful countryside!
pinkboy
If you can make up that $15k on easier design, less earthworks and you love the location I'd buy it at asking price.
I would try and get a nice long settlement though and get your building license in that time, combine land and construction loan and then be ready to build the day it settles.
I would try and get a nice long settlement though and get your building license in that time, combine land and construction loan and then be ready to build the day it settles.
Thanks for all your advice! I think you're right. 15k in the scheme of things is little. If we got one of the other blocks in the area, we would be looking at major cut and fill and/or bringing services up the driveway. Whilst we have 90 days to 'wait' for something else to pop up, we also don't want to live at mums forever (she's kindly taking us in whilst we build- hello good cooking!)
The broker has asked us to ensure settlement is on the same day as our current PPOR and the bank is happy to keep our existing loan and not do the shut one down open a new one up senario. Saves us on paying a small amount of LMI.
so we decide on plans, send to council for approval etc, as long as there are no major road blocks from council, 90 days should be enough to get it all sorted and have the building start on settlement? (brought plenty, but never built so appreciate your help big time!)
Thanks again.
The broker has asked us to ensure settlement is on the same day as our current PPOR and the bank is happy to keep our existing loan and not do the shut one down open a new one up senario. Saves us on paying a small amount of LMI.
so we decide on plans, send to council for approval etc, as long as there are no major road blocks from council, 90 days should be enough to get it all sorted and have the building start on settlement? (brought plenty, but never built so appreciate your help big time!)
Thanks again.
They don't HAVE to. But the bank is willing to keep our current loan open and then 'top it up' with our new land/building loan. If we don't have settlement on the same day then our sale proceeds go into a bank trust account, the loan is closed and a new one open= LMI and opening fees charged.
i see so substitution of security. Ask your lender if you could sell and keep loan open by using term deposit as security.
I think this is possible, he mentioned something similar. We are looking to get land ASAP though given we've just sold, we don't want the market to increase too much before we buy again. However, if we don't get the land in time for our settlement we will discuss the trust account idea.
UPDATE: The vendor is paying two separate realos to sell the blocks. The first realo we are currently dealing with has no set date for the sales. The new realo who had just listed the land has a set date for sale for 2 weeks time. Given the first one said 'he doesn't care if it takes a year to sell' I'm assuming the new realo is just using the date as a ploy? Now I'm unsure if we should offer again now or wait until just before the set date or what..
UPDATE: The vendor is paying two separate realos to sell the blocks. The first realo we are currently dealing with has no set date for the sales. The new realo who had just listed the land has a set date for sale for 2 weeks time. Given the first one said 'he doesn't care if it takes a year to sell' I'm assuming the new realo is just using the date as a ploy? Now I'm unsure if we should offer again now or wait until just before the set date or what..