Should I buy my next door neighbour out?
- Thread starter littletee
- Start date
Martin makes a good point. (can't believe I said that!)
I've printed your comment and will file away as proof if needed at some point in the future ... LOL!
Martin
This is a Brilliant idea (Not just good, Steve)
Lock in the sale as quickly as possible while it is still hot. And while no one knows, especially the vendor's close family for the reasons Peter14.7 explained previously.
Keep their mind occupied with the new Dream home and idea$ of what they can do with the $pare ca$h by feeding them with Melton property paper$ (the local Leader), internet printout$, in$pection trip$, etc.
The more their mind i$ in the Dream, the le$$ they would want to $tay in the exi$ting hou$e.
Keep the big picture in mind. You are not doing it for the house, you're doing it for the land.................and don't stuff around and possibly lose it by quibbling about $10K
$10K in $350K is what, 2.85%? Gee you have to be good to value a property 5% either way.
I'm not saying 'Don't negotiate', just put things into perspective.
Agreed- don't let the evil agents into the picture. Buy it - you will not regret doing so.
This is a Brilliant idea (Not just good, Steve)
Great Ken, now Martin's really gonna get a big head!!
If you can develop tomorrow its a bonus- if not wait for urban sprawl to do the job of changing council's minds.
The real advantage is that you can choose your neighbours. Try living next door to some tossers and you will see what I mean.
Update for you guys.
Unfortunately the father gave up and passed a couple weeks ago. The wife called me over during the week and said what we'd offer, I re-iterated our budget is $340k and the most we'd pay is $345k, told her to go away and think about and that I could offer them whatever terms she wanted etc. She stated she'd spoken to Agents and they said she'd get $375-$410 for it which is CRAP cause the inside is a disaster, the kitchen is halfway through a Reno, the walls/roof needs painting, the bathroom needs to be re-done and a few other cosmetic things.
Basically she came back today and said the lowest she could go is $350k. There's a house 4 houses down going to Auction on May 1 which is exactly same size block but cleaner inside, no need for Reno's etc.
I would really ideally like to pay $345k or maybe a little bit more like $347k so at least the $2k pays for her solicitor paperwork and she gets $345k clean in her pocket as that extra $3k or so could be put towards a kit kitchen I'm thinking of putting in on the cheap etc. BUT I don't know if I'm being silly for the sake of $5k or whatever cause in the long run, when I do the development over the two blocks of 1400sqm in Ardeer, it should return profits in the hundreds of thousands.
She can't do anything yet cause her husband didn't leave a Will and apparantly she has to wait until the death certificate comes through before she can do the paperwork etc, so I told her I'd talk to my Wife, Bank, Financial Advisor and get back to her during the week which she was fine with.
If the house was clean and I could just do a little bit of a clean-up and rent out, that would be fine. But this place needs a LOT of work so that's whats putting me off a little bit......But I must think of the bigger picture like you all say and dont worry about the work, just do it and think of the bigger development picture in 10 years time etc.
Need some advice guys, what should I do, don't worry about the price/work to be done and just secure the property asap or stick to my guns at $345?
Advice very much appreciated......TIA
Unfortunately the father gave up and passed a couple weeks ago. The wife called me over during the week and said what we'd offer, I re-iterated our budget is $340k and the most we'd pay is $345k, told her to go away and think about and that I could offer them whatever terms she wanted etc. She stated she'd spoken to Agents and they said she'd get $375-$410 for it which is CRAP cause the inside is a disaster, the kitchen is halfway through a Reno, the walls/roof needs painting, the bathroom needs to be re-done and a few other cosmetic things.
Basically she came back today and said the lowest she could go is $350k. There's a house 4 houses down going to Auction on May 1 which is exactly same size block but cleaner inside, no need for Reno's etc.
I would really ideally like to pay $345k or maybe a little bit more like $347k so at least the $2k pays for her solicitor paperwork and she gets $345k clean in her pocket as that extra $3k or so could be put towards a kit kitchen I'm thinking of putting in on the cheap etc. BUT I don't know if I'm being silly for the sake of $5k or whatever cause in the long run, when I do the development over the two blocks of 1400sqm in Ardeer, it should return profits in the hundreds of thousands.
She can't do anything yet cause her husband didn't leave a Will and apparantly she has to wait until the death certificate comes through before she can do the paperwork etc, so I told her I'd talk to my Wife, Bank, Financial Advisor and get back to her during the week which she was fine with.
If the house was clean and I could just do a little bit of a clean-up and rent out, that would be fine. But this place needs a LOT of work so that's whats putting me off a little bit......But I must think of the bigger picture like you all say and dont worry about the work, just do it and think of the bigger development picture in 10 years time etc.
Need some advice guys, what should I do, don't worry about the price/work to be done and just secure the property asap or stick to my guns at $345?
Advice very much appreciated......TIA
For $5k (not even 2% of the purchase price) I wouldn't even bother thinking about it - buy the place! That's a rounding error, and if you don't mind going to $347k to secure it and you think $3k more is too much than you're a lot better at valuing properties than me!
Hmmmm that probably sounds a bit harsh - all I mean Littletee is, don't let an adjoining block of a development property go for the sake of $5k!
Hmmmm that probably sounds a bit harsh - all I mean Littletee is, don't let an adjoining block of a development property go for the sake of $5k!
Yep...can't add anything to this..it says it all...
Hi Littletee,
I'm just wondering if there is no will in place how long will all the paperwork take to go through?
In the meantime, if the other property goes to auction on the 1st and gets what the agents are quoting or more, will she change her mind and want to go with an agent?
I'm just wondering if there is no will in place how long will all the paperwork take to go through?
In the meantime, if the other property goes to auction on the 1st and gets what the agents are quoting or more, will she change her mind and want to go with an agent?
If there is no will there is no one with authority to sign a sale contract, YET. I can not see any arrangement with the "hopeful" heirs having any legal standing.
I missed this with my last post. Sorry.
Thanks guys.
No idea regarding the legalities. I know the dead man left his brother in-law as power of attorney over the assets so I know he's the one to sign-off on everything etc but the wife is the one who's calling the shots etc.
I think my main aim is to get a contract of sale signed before 1st May just incase the other one a few doors down goes gangbusters she may change her mind like you state etc. I think we'll do the deal this week if we can but you're all right, for the sake of $5K in the longterm, that really is nothing!
No idea regarding the legalities. I know the dead man left his brother in-law as power of attorney over the assets so I know he's the one to sign-off on everything etc but the wife is the one who's calling the shots etc.
I think my main aim is to get a contract of sale signed before 1st May just incase the other one a few doors down goes gangbusters she may change her mind like you state etc. I think we'll do the deal this week if we can but you're all right, for the sake of $5K in the longterm, that really is nothing!
OK
Agree with others.
You are NOT buying a house, you are buying a development site. The kitchen condition is irrelevant. I would buy at$25k over, so $5K is nothing ASSUMING..... you have run the numbers correctly on the development AND....can afford to do it. If so, then buy it now.
Yes, the will means it is very likely you may struggle to find someone to sign. So do the best you can and may advice, do an exchange of letters and/or get her to sign a simple agreement AND give here $1k (even $5k) as holding deposit to here Solicitor ( he/she has to put in trust). This means when Estate does come to sell you have a good faith agreement that can be used. By going that extra step, the estate may simply agree. If not you can play the first negotitation card, after you firm up numbers you may be able to offer more.
The greatest risk you have is THEM changing their mind. ACT NOW!!!
The time is takes to settle will be at least 6 months so the $5k will be under the market by then.
I have worked in development for developers. I have seen a deal come on the market Monday, we moved heaven and earth and secured it Friday night. Tuesday morning - counter offer for more. Too late - We got it!
18 months later we made $9M clear. If we have mucked about 3 days it would have been stuffed.
Act Now with what ever you can, assuming you have run your numbers right!!!
Peter
Agree with others.
You are NOT buying a house, you are buying a development site. The kitchen condition is irrelevant. I would buy at$25k over, so $5K is nothing ASSUMING..... you have run the numbers correctly on the development AND....can afford to do it. If so, then buy it now.
Yes, the will means it is very likely you may struggle to find someone to sign. So do the best you can and may advice, do an exchange of letters and/or get her to sign a simple agreement AND give here $1k (even $5k) as holding deposit to here Solicitor ( he/she has to put in trust). This means when Estate does come to sell you have a good faith agreement that can be used. By going that extra step, the estate may simply agree. If not you can play the first negotitation card, after you firm up numbers you may be able to offer more.
The greatest risk you have is THEM changing their mind. ACT NOW!!!
The time is takes to settle will be at least 6 months so the $5k will be under the market by then.
I have worked in development for developers. I have seen a deal come on the market Monday, we moved heaven and earth and secured it Friday night. Tuesday morning - counter offer for more. Too late - We got it!
18 months later we made $9M clear. If we have mucked about 3 days it would have been stuffed.
Act Now with what ever you can, assuming you have run your numbers right!!!
Peter
Great reply Peter, thanks very much. Would love to talk to you further one day about developing etc, as this will be my first.
We've decided to pay the $350k they want but my thing now is trying to close this sale asap, I don't know legally what I need to do in order for the property to legally be mine if infact the Wife is still waiting on his death certificate etc. I'll probably call my Conveyancer as I'm hoping they would know but hopefully a standard letter of sale which is signed by all parties including my wife and I, and the wife who is the vendor and brother-inlaw who is the appointed Power of Attorney should hopefully do it perhaps......Anyone have any idea what I'd need to do to tie this one up asap until they sort their paperwork out etc?
Thanks
We've decided to pay the $350k they want but my thing now is trying to close this sale asap, I don't know legally what I need to do in order for the property to legally be mine if infact the Wife is still waiting on his death certificate etc. I'll probably call my Conveyancer as I'm hoping they would know but hopefully a standard letter of sale which is signed by all parties including my wife and I, and the wife who is the vendor and brother-inlaw who is the appointed Power of Attorney should hopefully do it perhaps......Anyone have any idea what I'd need to do to tie this one up asap until they sort their paperwork out etc?
Thanks
ASk you conveyancer and politley make clear to him/her you want no outs and are they up to it. I sense a solicitor firm with staff who do probate in your state is wise. Probate is very state to state specific.
Congrats on going ahead. Development is scary but nothing ventured, nothing gained....It sound slike they want to deal quickly which can happen.
Case in point: My father in law bought the next door neighbours (he had a stroke) 2.5 year old 10K on the clock Hyandai Elantra worth new $21k for $11k by simply asking what the car is doing. 2 weeks later nieghboour sadly died. Win/win for him and the estate form a legal deal point of view.
Car hardly run in.
Peter
