Making an offer to buy a house which is not on the market.

[sinead]

I own a rental property on Auckland's North Shore. I would also like to own the property next door which is currently owner occupied. The idea is to develop the back of the two sections by adding two minor dwellings. I cannot develop my section on it's own due to access problems (the house sits diagonally on the section preventing access to the back of the house other than on foot). The access problems would be solved if I owned the property next door as their driveway is between the two properties. I would be interested in people's ideas on the best way to approach the neighbours. We have never met.

[Stevegoodey]

So do you really need their property or joint access to the driveway?

Steve

[Wezz]

Making Offers To Buy A House That's Not On The Market

Hi Sinead - You know, the older I get, the more I realise that it's the simplest solutions that are the best. My advise would be to go next door and simply, introduce yourself as their friendly neighbour. You could spend a lot of time and energy finding out about the opportunity/solution next door, but if the vendors aren't willing to sell, then there's nothing you can do about it. To save money and not give any power to your neighbours in the discussion/negotiation, don't tell them "why" you want the property as they will (if they have any sense) try to get you to pay retail plus, for the property. Just get to know them. Develop a relationship and let them know you like the area so much, you'de like to buy a house in the same area, so that your mother can live close by (you get my drift). They may just say "we may be interested in selling our house". Worst case scenario, down the track, when you've developed a bit of a relationship I would try to obtain agreement from the next door neighbours that you would like to have the first right to buy the property. You never know till you try. I don't know if there's a formal legal document for this process (rather than a handshake), but I'm sure there will be. Maybe someone else will be able to assist you with that. Good luck. Kind regards - Pete.

[sinead]

Hi Steve,
Joint accees to their driveway would probably be enough to develop my property. I was thinking that buying the property next door and building 2 minor dwellings would make a good positive cash flow deal.

Sinead

[sinead]

Hi Wezz, Thanks for the advise. I have been wondering how I might build a relationship with them when I don't live close by. I could drop by and introduce myself but I'm not sure what I would do next...

[Dean@Massiveaction]

Hi Sinead,
Suggest that first of all you jump onto QVonline and find out what they paid for the property and when. You can also establish whether they are actually owner occupiers. Then decide ho wmuch the maximum you would pay is $$ wise and go and visit them.
I find honesty the best policy. Tell them you're interested in buying and seee if you can negotiate a sale within your price margins.
If that fails then plan B is to discuss with them about minor dwellings nad see if they would be interested in building one with your help in exchange for them granting you access to yours.

[pgflt]

Ask if they are interested in selling.
Answer: Yes or no.
If yes, you're on a roll.
If no, ask them what price they would want if they were to change their mind.
If price given, you are on the trail, and they may weel end up selling. If not - forget it.
In any case send them a bottle of wine or similar as an expression of goodwill for their time, with your contact details on the gift card.

[Don and Liz]

Hi sinead,

I agree with dean. Jump on qv and find out what you can about the person who owns the property.


I would not approach these people yourself as it puts you behind from the begining. Ideally a third party may be able to see if there is any interest on their behalf in a straight sale anyway - if so you could save a few dollars.
regards
Don

[sinead]

Dean/Don and pgflt, Thanks for all the advise. Here is what I know so far from terranet. They bought the property for $180k in May 2005. New CV this year is $280k. Shame I didn't realise it was for sale last year, $180 was a real bargain in my view. I think I will get a third party to approach them on my behalf as I have no experience in trying to put together this kind of deal and I think the first contact with the neighbours will be very important. I'll get someone lined up in the next few days and let you all know how I get on.

[drelly]

Hey Don,

When you say that approaching them ourselves may put us behind, do you mean because they will perceive us as being a "motivated buyer"? Wouldn't that apply no matter who approached them or are you suggesting approaching them in a way that doesn't imply someone is interested. If so, how?

cheers,
Dave.

[Don and Liz]

hi dave,

I was thinking about that when I wrote the first post. I have never done this but here is an example. The other day I was in the hunter valley in nsw and a real estate agent presented with the door knock approach introducing himself and doing the whole this is who I am and what I can do for you thing. He was pleasent, we met him and he left. It is an extension of the business card in the letter box approach.

Three days later there is a call from the same agent who now has a interested buyer. This was unusual because the property is a vacant piece of commercially zoned land between two other shops. Obviously he was acting as an agent for the buyer. So the agent had made an approach which failed and then went with the direct approach. Not ethical because in this instance the agent should be acting in the interest of his client (you) rather than the buyer/developer - probably illegal (not sure really).

Perhaps you could engage a buyers agent in your area to approach these people. The key would be to find an ethical balance in how you approach the deal. I'm a big believer in karma.

regards don

[sinead]

Hi Don, do you know of any buyers agents in Auckland? The only reference I have seen to a buyers agent has been a real estate agent advertising to recruit one. The role included following up buyers who have been through open homes and sourcing listing opportunities!!! How that relates to be a buyers agent I'm not sure.

[Don and Liz]

hi _ no I can't help with that one