House next to me is up for sale

Hi all

My neighbours house is up for sale. It's would actually be nicer to live in than the one I m in as it has rear access and a single garage. They are all built by the same developer in my street so they're the same thing. I m in Melbourne on the 15 km ring from CBD. Old small 3 brm house entry level.

Each property is on 450 squares. So a combined block of 900 if I owned it. Obviously the easy opportunity is to sell it to a developer for a premium.

So the questions are:

1. How do I check out with the council if you could develop it. I m a newbie so top 3 would be great

2. Is a buyer's agent a good idea so I can deal with the real estate agent anonymously ie not have them know I might pay a premium. If so how can i find a good one and what should I expect to pay.

3. How much over market value should I be willing to pay in terms of percentage? Everyone is saying Melbourne is at least 10 ℅ over valued. But I m not sure a correction would hit the bottom end.

4. Anything else a complete newbie should have asked

 

You need to know if there is a covenant on the title and any overlays that restrict development. The Council should be able to provide some information. The vendor statement will contain lots of details.

A buyer's advocate can certainly help: try Wendy at Amalain.

 

Heheh well the front lawns on my place got away on me. I won't be hurrying to fix that up.

Anyone have any thoughts on number 3

 

Amalain want $4000 for their home buying service. Seems a bit steep for what I want. Basically to just make offers on my behalf. Does anybody know another option.

 

Bump

 

3. find comparible sales in the area to compare to. dont just go over by x% cause someone said so. find what you think it will sell for then work out what you'll pay extra for it.

1. find this out first before making offers

2. i dont think you need a BA to remain anonymous. the agent doesnt know where you live unless you tell them or stroll over in your pj's for an inspection

 

Thanks. The agent does know my name. I didn't mention in my OP I got a letter from them asking if I wanted to enter into a joint sale as they claimed they have developer clients.

 

I m working off my GV. Which is 370. Normally houses sell for 10℅ over GV. And another listing in the same street quoted 405k for a medium offer. The question is more around the potential deal with the developer. Looking at other current developments me area getting 4 townhouses on the block should be easy. They should sell for 525k minimum. I paid 320 k for mine so assuming I sold the block for 850 k. That leaves 1.25 m for the developer to build the townies and turn a profit. Is that realistic?

 

Appoint a friend to act on your behalf.

 

Thanks Terry how would I go about that

 

Say to your mate "could you ring up the agent and ask xxx"

When it comes time to sign you just put your name down. but the vendor may know your name and if they see it is you entering the contract they may then refuse or ask for more.

Or you could talk to a lawyer about a formal nominee - if you could find someone willing to sign, you could then be nominated to settle so the vendor won't know it is you until too late.

 

Your solicitor can handle this for you. I would think the charge would be far less than $4000.

Friend wanted to buy a property from a distant relation not on speaking terms and knew the relation would never sell to him. His solicitor arranged everything, including bidding at auction, and he got the property.
Marg

 

Not sure if Ernie is still around. Maybe Datto can help out?

Ernie Dingo Auction – Fast Forward | Scan 8k

Blacky

 

To add a bit of value to the thread. This page had some planning docs to check at the council.

How to: Tell if a development site is feasible - realestate.com.au

 

My mate looked up his paid valuation website. It listed the value as between 450 to 520. Avg rental return for area 2.77 ℅. So it doesn't seem to stack up as a rental property

 

Since Melbourne likes auctions if it goes to auction just bid, grow your hair and a beard (if male, please don't try if female) and you might be able to disguise yourself.

Otherwise someone can sign with and/or nominee and they nominate you, this will involve a legal fee to do so which you should cover and you would also need to probably provide the initial deposit so you probably want someone you could trust (e.g. relative or close friend).

Also be aware of easements, the house next door to me came up for sale at the end of last year, I might of been interested if I had not bought something a couple of weeks before hand. However as soon as I saw the easement I would of been turned off it as it ran right between both properties so that would really impact future developments regardless of zoning.