Hi there
Looking at buying a 1.6 hectare block of land in country Victoria, with the idea of a future retirement PPOR, or to sell the block in 5-6 years if our retirement plans change.
it is a low demand market, but good blocks are in short supply. It is not possible to subdivide this block. I would expect some growth in future years with baby boomers moving into this area, but most of them would want smaller blocks with less maintenance. It has been on the market for 2 years with no reduction in price, but the real estate agent tells me the owners are now looking for offers. There is one other block available in the same area, advertised at a higher price, that in my opinion are not as good, it has also been on the market for 2 years. It is 10 km from the main town, in an area of 10-15 houses on rural living zones, there are 2 vacant blocks left, and another subdivision for 10-15 more blocks in this area is currently in the planning stages, where people expect the new blocks to be at a higher price.
I am looking to buy it at a considerable reduction on the advertised price, and am not able or prepared to pay the asking price. My original thought was to make an unconditional offer, 60 day settlement with a 3 day expiry, and expect it to be unsuccessful. My next thought was to increase my offer by 10000, same conditions and if unsuccessful, make a final offer of another 5000.
Is this a reasonable approach, or is there a better way to approach this? I guess I don't want to appear too keen, and how long should I wait before making my next offer. Do I pretend to be no longer interested and then come back in a week or a fortnight with my next offer?
Over what time period would negotiations normally last, until you either were successful or gave up. Is it 1 week, 2 weeks, 4 weeks?
Thanks for any advice
Kevin
Looking at buying a 1.6 hectare block of land in country Victoria, with the idea of a future retirement PPOR, or to sell the block in 5-6 years if our retirement plans change.
it is a low demand market, but good blocks are in short supply. It is not possible to subdivide this block. I would expect some growth in future years with baby boomers moving into this area, but most of them would want smaller blocks with less maintenance. It has been on the market for 2 years with no reduction in price, but the real estate agent tells me the owners are now looking for offers. There is one other block available in the same area, advertised at a higher price, that in my opinion are not as good, it has also been on the market for 2 years. It is 10 km from the main town, in an area of 10-15 houses on rural living zones, there are 2 vacant blocks left, and another subdivision for 10-15 more blocks in this area is currently in the planning stages, where people expect the new blocks to be at a higher price.
I am looking to buy it at a considerable reduction on the advertised price, and am not able or prepared to pay the asking price. My original thought was to make an unconditional offer, 60 day settlement with a 3 day expiry, and expect it to be unsuccessful. My next thought was to increase my offer by 10000, same conditions and if unsuccessful, make a final offer of another 5000.
Is this a reasonable approach, or is there a better way to approach this? I guess I don't want to appear too keen, and how long should I wait before making my next offer. Do I pretend to be no longer interested and then come back in a week or a fortnight with my next offer?
Over what time period would negotiations normally last, until you either were successful or gave up. Is it 1 week, 2 weeks, 4 weeks?
Thanks for any advice
Kevin
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