Morals of buying from a friend

[imonmyway]

A friend of my wife is going to sell her 2 bedroom flat in a inner Melbourne suburb. Shes says that she would happily take 275k for it and is sourcing an agent, she is desperate to sell. Now immediately on hearing this I think Id buy it for 275 in a heart beat and save her the agents and advertising fees.

My wife however feels that this is taking advantage of a friend and wont even consider it. I can see someone with a similar mindset to me coming in and offering her say 265k she accepts in and the agent takes his 10k cut and she ends up with 255k in hand.

Any suggestions on how to handle this or anyone been inn a similar situation and let an opportunity like this pass them buy. Am I being a ***** for even thinking of wanting to purchase from a friend in need?

 

[troyhunt]

I'd do it if I was in your shoes! Sit down with the two of them and put all the cards on the table. If you can't all walk away happy, don't do it. There should be a win-win in there somewhere given the agent fees would not be paid.

 

[Simon]

Sounds to me like you are doing her a favour.

A quick, hassle free sale for the price she wants.

Unless you feel she may get a lot more at auction I can see no conflict.

Remember that you are using logic and reason whereas your wife is considering it at an emotional level. Given time she will probably come around - especially if the friend is grateful.

 

[our obsession]

Imonmyway:

A friend of my wife is going to sell her 2 bedroom flat ......this I think Id buy it for 275 in a heart beat and save her the agents and advertising fees.

..........
Any suggestions on how to handle this or anyone been inn a similar situation and let an opportunity like this pass them buy. Am I being a ***** for even thinking of wanting to purchase from a friend in need?

Yes, I have done this, similiar situation, friends wanting to sell, made an offer, no agents involved and sold it quickly.

Was actually quite interesting to have the direct communication line with the sellers, as the title, (for the land block that came with it) was an incorrect one. You have communication/knowledge on all levels, not just via conveyancers/solicitors, (talking via other folk)....that was really good.

It all went fine, they had their "about price" and I obviously came close to it, win/win=yep.

Hope it goes well for y'all.

 

[lizzie]

i agree with the others - as long as your friend is happy with the price they get then i can see no problem. and they are getting an extra $10k in the pocket by not having to pay agents fees.

other positives are that she can settle in a timeframe that suits - not having to negotiate with hardball strangers - she can move out at a preagreed time rather than vacant possession etc.

all good imo.

 

[ianvestor]

Are they familiar with the concept of 7-10 year doubling? If not, would they resent you more and more as time went on and saw you get capital growth out of it?

They might say they are happy with the price now, but how will they feel about YOU when they look back at the situation 10 years from now when it's worth over half a million?

 

[tarah]

Hi imonmyway,

You should definitely buy it from her. As said above it is a win/win situation! But you just have to convince your wife!

I have just purchased from a man I work with and he was pleased with the savings on agent's fees and the quick sale. And I am happy with the price, dealing with the seller directly and the settlement date!

Go for it as long as your wife is happy!

Good luck!
Tarah

 

[Bradsdad]

If you're happy with $275 and so is she then go for it. Even if agent can get over $280k she's still in front.

 

[silversands]

Hi,
We purchased from a former employee. We had her get an appraisal from re agent that both parties trusted and then offered that amount less any commission the agent would have earned. Condition of sale was fast settlement, that was desirable at the time for us and that we had access to property prior to settlement for the purpose of spruce up, maintenance etc.

Result was great buying for us and a huge relief to her. If she is truly a friend, aim to do the right thing by her. Just my opinion fwiw, as my good friends are priceless, and worth more than any property deal to me.