Letter box drop leads to over $400k BMV purchase in Sydney

I know I know I coped a lot of grief from my mates for selling it. As with all my classic cars yes I always come out in front. Looking forward to an overdue catch up.

 

Good one mate! Almost like one of those real estate guru book stories. Anyway, you are demolishing and build? Or just renovating the existing one. Care to share the property or suburb? You mentioned it was the only free standing home, so must be very inner in Sydney or Melbourne.

 

Well, thread says Sydney, so that narrows it down for you

 

Well done Josh, congrats! look forward to hearing more about it at the next catchup!

 

My key takeaways from this thread:

1. Spam the neighborhood with unsolicited letters
2. flesh out uninformed owners
3. when uninformed owners are found, time to sweet talk and develop friendship
4. lowball them
5. if first lowball offer fails, increase offer slightly
6. if increased offer doesnt work, harass vendor
7. if that doesn't work, increase offer a little more
8. harass vendor
9. harass the vendor again
10. one last barrage of harrasment, perhaps with a final sweetener
11. target older folk, preferably those without the internet

sorry @josh123, just having a bit of fun

 

It does work though! My aunty got her block by letterbox dropping. She wanted a certain area/only wanted to buy in 2 specific streets.

 

Yes, need higher power reading glasses...

 

Nic

Nice one @josh123 . Feet on streets pays dividends.

I think you might owe Mrs Josh a finders fee

 

Word is on the street the Hemsworths and half of Byron have seen the light and moving to the Druiee.. You heard it here first

 

Mate I'm telling ya not surprised what so ever!

 

We recently had an unsolicited approach to purchase a CIP (indirect neighbour from an adjoining street). The guy had to do their homework as it wasn't a letterbox drop (title search, company director search etc). We held a few discussions to flesh out a proposal.

In the end we decided that there were no alternative investment opportunities which would provide the same/better ROI so we decided to hold.

That's not to say a direct approach doesn't work, but it can get just as much traction as sitting, waiting for something to hit the market and pouncing.

 

Its a hot market in Perth, after reading this I decide to drop 12 personally hand written notes to area I have been hoping to secure

I got a text this morning and spoke to owner, but to my disappointment the property has already been subdivided. I did not realise at the time.

After chatting he wanted too much for the front house. I dare say hard to secure a property this way in hot market, but not impossible. Need some luck here

 

Awesome result, and now the vendor must be kicking himself for not going through an agent.

 

@albanga did someone mention BMV....

 

My feelings too.
The seller might not feel so good when they find out what they could have got.
Difficult situation but there is always an obligation to make sure we aren't taking advantage of people. Even if they don't have dementia or are old.

 

Many years ago we prospected a property near our agency (the owner called us in). Met up with them, told of their plans to move to a newly built 5 star retirement village in the Eastern Suburbs (perfect candidates) etc, then informed that the son looks after 'things'.

Contacted the son, who happened to have POA. Luckily they had family who were able to intervene.

 

The entire game of real estate is to gain whatever advantage you can to secure the best buy or sale. Fibbing, pressure tactics, time pressure tactics, made up stories, playing down defects, optimistic or pessimistic analysis to buyer/seller re market, high pressure auction tactics, pitting buyers against each other to emotionally induce higher prices, cosmetic works to portray more value then actually exists, BnP reports to get reductions etc its all part of the game to pressure, scare, push buyers/sellers to make a move and take the deal. Has been since day dot.

Back a few years there was a seller who had severe anxiety ( on meds) that the market would tank and sold her apartment for a terrible price. Of course that anxiety was used to the advantage of the buyer.

It's the reality of the game. Everyone wants the upper hand to get the best outcome for themselves. While I do feel for some folks, it doesn't impact my own decisions to get the best deal. Of course within reason. There are limits, ie I wouldn't knowingly take advantage of a seriously mentally ill person.

Most folks ( not meaning yourself) who preach otherwise are just hypocrites, deluding themselves.

 

ah, no. Not everyone has a "win at ANY cost" mentality.

 

The reason why it’s 400k BMV is because of the market. As I said in a previous post the vendor got $500k more than his neighbour got 6 months earlier. I can’t help lack the of supply and how hot this property market is. No one would thought the other property going to auction the following weekend would of achieved what it got (300k above reserve). We paid more than what another off market property went for the week before we purchased. That’s just the market. It has moved so quickly in a few weeks.

 

Im certainly not suggesting 'at any cost'.

Only replying to the comment 'not taking advantage of people ' needs to be qualified with a dose of reality.

Most of the successful folks on here would have ' taken advantage of' situations. Which is really a euphemism for, people. Most just don't like to acknowledge it. And some like to be hypocritical about it. Trying to take a moral high ground. Puuuulease.

Simply offering a very low offer in a stagnant market is trying to take advantage of (the situation). Aka, folks.

'Taking advantage of' (markets, low stock, etc etc, is the name of the game. Essentially, people can be impacted. It's reality.

Like I said, I draw the line with mental illness and the like, but otherwise, it's just business.