Best way to approach someone to buy their house that is off the market?

Just looking at peoples ideas on the best way to approach someone to purchase their house that is currently off the market?

Background:
- house is on a fairly large block in Melbournes North.
- House built in 1979, 3 bed, 2 bath, brick
- 20m wide x 31 m deep
- I know the person well (sorta) through work, She has been made redundant, very close to retirement age, however she is back at work practically every day as a casual. She has no children and a partner.

My thought process is that if I can purchase directly from her, she would save on agents fees, etc. (I wouldn't go in and lowball, but basically a fair outcome for both). I may even be prepared to pay her legal fees, as a sweetener, depending on the price. I would even consider her stay/rent the house for a year(maybe more) until I sort out all the planning development topics etc.

What are your thoughts on how to win a deal like this?

 

It's a hard one to judge sensitivity-wise, you could be seen as either a vulture or a knight in shining armour.
But if she's in for it, then great!

 

Judging from the outside, looks like some curtains are ripped and haven't been changed for years The windows look like they haven't been opened for some time, and they have that foggy uncleaned appearance. Perhaps this could entice her to downsize and purchase a brand new townhouse in the area, with a fair bit of left over money...

 

Ask if they want to sell.

Ask what they want for the place, maybe get a valuation and then agree on an amount.

 

I would not judge.

I know people who have old sheets and table cloths across windows on a 17 year old house, they are working hard in business 7 days a week, anyway, point being, they could change them if they wanted too, most people would think they were on the edge of going under, but not so.

 

Tried this and problem is from my experience suddenly they are in the box seat and could very likely want more than the property is worth. Don't under estimate outcome by age of the owner, they can easily phone local agent that would jump due to low stock.

Its still worth a shot, why not.

 

And agent is likely to give inflated price, as many do......then they all go off talking to friends and family and of course they all know this great website that tells you how much every place is worth !

But you never know.

 

You could prepare your own estimate/valuation and document it all with recent nearby sales and get pics for her .Then you could explain kindly what its worth .Then if they want to get another valuation great -work with them to get a fair outcome .If it comes back at a ripoff agent price -get another fair agent in .

 

Agreed. It doesn't need to be overly complicated.

Tell her that you're in the market for a house just like hers - that might open up a conversation about whether she's ever thought about selling.

Cheers

Jamie

 

You could factor her into the deal with an option to buy.

You go through the risk and cost of the planning process but she gets a cut of the profit. Basically you would pay a smallish deposit to secure the deal ( which you may lose if the planning falls through ). Obviously you would need legal advice.

I was told that this scenario can also allow you to remove stamp duty from your equation.

Allows her to continue living in the house until development starts.

Edit - @SmileSydney told me about this approach last week

 

I'd consider feeling her out with a casual approach, mostly to find out what might motivate her to sell. Then when you know what would appeal, approach her with a solution. You might consider making the approach through your solicitor to give it a bit of credibility

 

You have no idea if she is remotely interested in selling.
But you do know her, so a casual approach may be a good start.

Why not a simple "if you are ever interested in selling, please let me know as I may be interested in buying"?

Her response will give you a better idea of where things stand.

However, you mention that she has a partner. Maybe the house is actually his? Or he has an interest in it? Even if she owns the house, any decision would probably be a joint one.
Marg

 

i bought a demo at auction that i then decided to reno
all of a sudden i got a card in my letterbox from a real estate agent saying they had a buyer that wanted to make an offer if i was wishing to sell. I went through with enquiry just out of curiosity(it was a developer, large block) they were offering 90k over my 260 purchase price only a few months after i bought it. it was only because of the hard work my old boy had invested in renovating that I didnt consider. plus the potential for growth is there...
now the reno is done 1 year later its still only worth 350.
anyway i digress the agent dropped a card in the letterbox saying they had a legitimate offer. I'd go that way and use the agent as it takes out the personal aspect. theres no marketing fees or showing fees etc. and buyers agents are cheap

 

I had the chat with the lady, and she was quite happy with the discussion. Lets see what happens next.....

 

The fairest way to determine the value is get 3 local REA's to inspect the site and ask them to give their price based on comparables. Demand comparable sales, don't allow them to inflate it by saying "yeah but this one...blah blah".
Also ask them if anything is needed to achieve this price for example painting.

Take the average and your set with a figure.
Then just deduct ALL the selling costs but add back say 5k. You then sell the idea as a win/win.

Your buying a property without most of the selling costs so will likely save yourself 15k.
They benefit by making an extra 5k when you factor in costs PLUS you will purchase as is so no need to do anything PLUS they don't have to go through the selling process PLUS favorable settlement terms.

Just keeping stacking the pluses on top.

 

I have done this in the past.

You are not gagging to buy. You love the location. If she ever wants to sell down the track you would love to talk to her and she will save agents fees.

My wife and mother in law are better at this than I am - they are friendlier and nicer people. I come across as a opportunistic raider.

 

Might be a female touch? Personally... and only a generalisation... I like booking airbnb accommodation more with females than male hosts. I think women tend to understand homemaking and have an extra deeper level of empathy/sensitivity to draw upon.... (clue the haters!!!) Guys have advantages in other areas though.

 

Interesting thread @JK200SX . I have thought about doing this on my next development site (though with complete strangers). Let us know how you go!