Ethical Dilemma: Who to Sell to?

[Deactivated] on 26/10/2019 - 18:43
Last edited 28/10/2019 - 08:28 by 1 other user

Dear Conscience Ozbargainers,

Our lovely tenants of 3 years are moving overseas in 2 months. We knew this was coming, although we didn't know the exact date they would be moving out until last week. A neighbour had approached us earlier this year and made a verbal offer on the apartment, which at the time I thought was fair and agreed to discuss it with my wife and our tenants. Neither were overly-enthused by the idea , so I declined the offer in writing ( via sms) but agreed that I would contact him if we ever decide to sell.

Fast forward to now, where not only have our tenants notified us of their intention to vacate the property but they have also found us a potential buyer, 'Dammo', who has fallen in love with the views from the apartment. His offer is higher than the one the neighbour made us and he has the money ready in his bank account.

My wife and I are keen for an easy sell and have no interest in pitting them against each other.

My questions are:

  • should I tell the neighbour?

  • should I contact my solicitor for advice?

  • are my wife and I sitting on a gold mine and should we be more interested in making the most out of it?

Cheers,
JJB

Poll: who to sell to?

Update :

  • Neighbour is not happy and threatening to contact his lawyer as according to him we had a "deal", which isn't true.

  • Dammo "doesn't quite have the money" but is expecting it to "hit (his) account within 10 days."

Sigh

Might get in touch with a couple of REAs on Monday.

Poll Options

  • 367
    Dammo as he's made the higher offer and has the money to back it up.
  • 2
    The neighbour, at the original offer price.
  • 122
    Pit the 2 against each other.
  • 88
    Use an RE and go through the process of properly marketing the property.
Home & Garden

Comments

  • ThithLord on 26/10/2019 - 18:48
    +32

    Offer the neighbour the price Dammo offered and go with them if they agree.

    • [Deactivated] on 26/10/2019 - 19:08
      +5

      We've met Dammo. He is genuinely in love with the apartment and has that look of desperation that all home buyers that have been looking for a long time have.

      The neighbour is going to Airbnb the place.

      • Unorthodox on 26/10/2019 - 19:21
        +3

        Airbnb could potentially lead to issues that might happen that you should consider if you live in the area.

        Excess trash/rubbish
        Noise from parties
        Unruly behaviour
        Parking/car build ups
        Alcohol

        • [Deactivated] on 26/10/2019 - 19:22
          +12

          We don't live in the area.

      • ThithLord on 27/10/2019 - 16:04
        +21

        Then go with Dammo. If he's looking as owner occupier but your neighbours are looking to invest, I say Dammo!

      • Lysander on 28/10/2019 - 14:37

        That is an easy choice then. Go with Dammo unless you feel you are fine with contributing to (a) homelessness, and (b) ever increasing (more than already with outside investment) home prices which will also affect you.
        Plus, Dammo actually loves the apartment and has the money.
        What more can you ask for?

      • AustriaBargain on 29/10/2019 - 19:59
        +2

        Who cares. do the thing that gets you the most money. You're not selling organs here, it's just a house.

    • nikey2k27 on 27/10/2019 - 18:50
      +1

      go with high price that all you care about

  • Donaldhump on 26/10/2019 - 18:48
    +76

    Tell ur neighbour Damon’s offer, give them the option to match it, if not damo wins

    Stop being so nice:)

    • Hybroid on 26/10/2019 - 18:50
      +15

      /endpost.

    • FireRunner on 26/10/2019 - 18:53
      +6

      This sounds fair. OP never agreed to sell it at neighbour's offer price. He just said he'll get in contact if he later decided to sell.

    • [Deactivated] on 26/10/2019 - 19:20
      -4

      Stop being so nice:)

      I'm not nice. Just ask my neg-stalker :p

      • [Deactivated] on 26/10/2019 - 20:17
        +6

        He's not nice.

        • [Deactivated] on 26/10/2019 - 20:48

          Does that mean I won't be getting my '54 light blue convertible :(

  • dcep on 26/10/2019 - 18:50
    +42

    if your apartment has the sex appeal, sell it double to unistudent

    • spackbace on 26/10/2019 - 19:05
      +2

      And throw in a 99 civic into the deal!

      • dcep on 26/10/2019 - 19:10

        with rego or without ?

    • [Deactivated] on 26/10/2019 - 19:17

      It depends on what the definition of "sex appeal" balcony is. If it's:

      • a place your neighbour can watch you have sex ?

      Yep! If they aim their binoculars your way.

      • A place you can watch others have sex?

      Yep! If you buy a binocular. Bonus city, river and bay views :)

      • A place which can help you get girls/boys/men/women/ all of them

      Who brags about their balcony when they're trying to pick up? Or is balcony an euphemism?🤨

      • crentist on 27/10/2019 - 06:51
        +1

        I once lived in a decently sized apartment. And on top of that, the balcony was the same size. Absolutely massive. Couple of sofas outside, couple of hammocks, a waterproof pool table the previous tenant left behind. Some unused gym equipment around the corner (also previous tenant).

        It was, pretty good.

  • Bluberry on 26/10/2019 - 18:52
    +8

    Are you sure you have a good idea of what the market is like?

    Unless it is a rediculously high offer, you maybe better off going to auction.

    Also, I don't see an ethical dilemma here. You are over thinking this.

    • [Deactivated] on 26/10/2019 - 19:48

      Are you sure you have a good idea of what the market is like?

      We asked 2 RE at the beginning of the year and were given widely differing estimates. Dammo's offer is 40k over the average of those estimates.

      • darkchoc on 28/10/2019 - 09:41
        +2

        The market has moved since the beginning of the year. Really in the year, backs were tight on lending and properties were not selling.

        Now: Borrowing conditions are looser for people and rates are lower.

        Agent and advertising will cost you about 1.5%-2.5% off the value of your place.

        Seeing that you have 2 people competing, best to test the market IMO

      • saine on 28/10/2019 - 15:38
        +1

        A lot has changed in the market since the beginning of this year.

        • cloudy on 29/10/2019 - 10:00
          +1

          What hasn’t changed is the likelihood of agents over pricing what you are likely to get in order to snatch exclusive rights to sell your property.

  • SBOB on 26/10/2019 - 18:55
    +6

    Pretty sure I'd still be hitting up a few re agents to get an idea on what it's worth (or what they claim it's worth).

    Don't want to be leaving 50k+ on the table by taking the convenient offer. If local sales are within 20k or so id take the quick, non real estate agent sale every day though.

    • pwnd on 27/10/2019 - 09:38
      +6

      On the other hand, he’s not using a RE this way, and is not having to pay the commission and marketing fees
      Adds up to a fair bit

  • kahn on 26/10/2019 - 19:09
    +11

    With a name like Dammo, how could you resist?

    • oO0Dam0Oo on 29/10/2019 - 06:11
      +3

      That’s what I told my wife but the novelty soon wore off!

  • holdenmg on 26/10/2019 - 19:17
    +1

    Firstly, why isn't there a "Swords at Dawn" option… :+)

    Second, your only obligation is to advise "The neighbour"

    You can say that you have had a firm unsolicited offer from an individual
    that has fallen in love with the views from the apartment.

    They may (or may not) be still looking.

    • geoffs87 on 27/10/2019 - 08:58
      +4

      I like this idea.

      You could also play it like a real estate agent would, silent auction. Say to your neighbour you have an offer from a friend of the tenant (you weren’t looking to, but it’s an offer worth considering). Suggest their offer is higher than what theirs was, and you would prefer not to tell them, if they’re still interested in buying, to make a higher offer than their original, and see how it pans out. If it’s more than Dammo’s, take the higher offer, if it’s less, take Dammo’s offer.

      At least this way you gave them a chance.

      If it’s roughly the same, I’d sell o Dammo as he seems like he’s trying to get in the market… easy to say though when it’s not your own property, ha!

      • smashman42 on 27/10/2019 - 16:16
        +4

        Hell, let Dammo know of their counter offer if they beat it too.

        He doesn't know he's in a competitive auction but the neighbours know and know the bid to beat.

        Financial swords at dawn!

  • vikvance on 26/10/2019 - 19:19
    -1

    Are you sure you want to sell now ?

    The market seems to be appreciating.

    • [Deactivated] on 26/10/2019 - 19:25
      +3

      Others in the complex have started airbnb-ing their apartments and we can foresee the headaches that we will have to deal with with future tenants. We could also use the money.

  • brendanm on 26/10/2019 - 19:26
    +17

    Just sell to Dammo if he has cash waiting and wants the place. More money and no hassle is basically a dream deal. Also sounds like no slimy real estate agent involved.

    • [Deactivated] on 26/10/2019 - 19:28

      This is our preferred option. Was wondering if I had an obligation (legal? ethical?) towards the neighbour.

      • brendanm on 26/10/2019 - 19:29
        +19

        Nope. Business is business. I'd also prefer someone to love the place than air bnb it and make everyone else's lives hell.

      • Almost Banned on 26/10/2019 - 20:59
        +9

        You have no legal obligation to the neighbour, but I would suggest you have some moral obligation to at least let the neighbour know you are now looking at selling since that's what you promised to do. Contact them and let them know you have received an offer.
        See what happens.

      • AlienC on 26/10/2019 - 22:46

        Just give them the news like you would if you had to flake on meeting up with a friend.

        It is hard to do but everyone will understand and feel better for it after.

        Unless you are good friends with your neighbour or really value that relationship more than the extra money don't do it aka give them the place for cheaper.. money is money and money talks money walks.

        • [Deactivated] on 26/10/2019 - 22:49

          Not friends. He got our number through our tenants.

      • jace88 on 27/10/2019 - 19:49

        None. You didn't have a "deal" based on the conversation you had. Besides, if I recall from my contract law studies correctly, sale of land/property must be in writing.

      • Never Pay RRP on 28/10/2019 - 00:34
        +1

        Based on your further comment about your neighbour wanting to talk to his lawyer, I would explicitly exclude them to avoid further problems.
        You declined their offer in writing, I'm not sure why you would have any obligation to them

  • [Deactivated] on 26/10/2019 - 19:31

    Why not lease the apartment again to new tenants?

    • [Deactivated] on 26/10/2019 - 19:32

      This

      • [Deactivated] on 26/10/2019 - 19:50

        Saw that just after I posted!

        Could you get apartment appraised (with no obligation to list) in order to assess as to whether Dammo's offer is worth considering after allowing for R/E costs/commission if you then go to market?

        • [Deactivated] on 26/10/2019 - 19:51

          Dammo's offer is 40k above the average of those estimates and close to a 100k more than my wife and I were expecting the place to go for, considering how much we personally hated living there.

          • [Deactivated] on 26/10/2019 - 20:27
            +2

            @[Deactivated]:

            Dammo's offer is 40k above the average of those estimates

            You don't want an 'average' sale price - you want to set an apartment block/street/suburb record! 😀

  • geech on 26/10/2019 - 19:35

    I agree with comments above. Tell the neighbour you’ve received an offer, and that if he’s willing to match it, then it’s his - otherwise go with Dammo. You can’t have a guilty conscience if you give him the opportunity to match, and you won’t be selling yourself short.

  • brendanm on 26/10/2019 - 19:37

    Does the neighbour have cash or at least some sort of pre approval? If not, this could be a much bigger pain than old mate Damo who doesn't need to muck around with banks etc.

    • [Deactivated] on 26/10/2019 - 19:39

      Was pre-approved at the beginning of the year, based on what he said at the time.

      • brendanm on 26/10/2019 - 19:46
        +2

        Still requires hassle, hopefully bank values it ok, waiting etc etc. I love money, but I love easy transactions even more.

      • 87percent on 26/10/2019 - 19:49
        +2

        Pre-approval nowadays means squat. Lending criteria is super strict now. Money is king, whoever can pay, gets the property

      • lainey13 on 28/10/2019 - 01:46
        +1

        Expired by now then and lending market has tightened up. Means nothing I think. Probably wants to make a bargain not give you a fair price.

  • Skramit on 26/10/2019 - 19:48
    +3

    What? There’s zero ethical dilemma here. You’re nuts if you over think this as anything more than as selling your property for the highest possible price.

    Speak to some local real estate agents about the price. Get an independent opinion (preferably 3) to make sure you’re not under valuing your property then sell it to the highest offer.

    Your crazy if you don’t advise the neighbour that you’ve been offered more. But in my opinion leave this bit to the professionals by engaging a RE agent. This is what you pay them to do - get you the best price.

    It’s realllllly simple.

    • Mokr on 27/10/2019 - 10:27
      +1

      U don't want to piss off your neighbors though even if they should understand.

      Btw could damos I feel in love with the place be a great negotiation tactic.

      • Skramit on 27/10/2019 - 12:02
        +3

        Who cares? Once sold they are no longer his neighbours. And selling to another person for a higher price does not qualify as a reason for “pissing off the neighbours”. OP is entitled and should go for the best price possible.

  • Muten-Roshi on 26/10/2019 - 20:08
    +4

    Add 10k to whatever Dammo offered when you quote it back to your neighbour. Dont feel bad because letting him know is the honourable thing at least.

  • [Deactivated] on 26/10/2019 - 20:17

    Sale by tender.

  • JimmyF on 26/10/2019 - 20:43
    -1

    Tell your neighbour you're looking at selling again and see if their offer has changed, if not or the other offer is still higher, then go with whoever.

    You should also get some agents in to 'price' the place to make sure the offers on the table are not way under its value. But remember, they always give high prices so you sign with them. So factor in some lies and remember the commission fees. Don't sign ANYTHING with them.

  • slowcoach on 26/10/2019 - 21:08
    +3

    I’d prefer to sell to someone who was going to live in the place and appreciate it.

  • Seraphin7 on 26/10/2019 - 21:16
    +1

    Ummmm … whoever's going to give you the most cold hard?

  • H E B on 26/10/2019 - 21:30

    I'm not seeing your dilemma.

    Surely you're not serious about just dealing with Dammo or you'd have started the process by now.

    It's an investment property 9/10 people will put it on the market as a logical choice and pit everyone up with everyone unfortunately that's business.

  • Cheeper on 26/10/2019 - 22:03

    If you can find a reputable real estate agent ??? They do exist.. go there.
    I just sold a property thru one and got a sale in 2 days for much more than i thought it was worth.
    Their fee was worth every cent.

    • profar on 26/10/2019 - 22:09
      -1

      Not smart you didn't get the highest price you could have got !

      Worst you think you may have lol

    • AlienC on 26/10/2019 - 22:48

      Damn I should become a real estate agent is it hard to become one only thing is I don't have a car lol so would be pretty funny catching the train to different places but I am good at not being a douchebag and talking about stuff and places and the important information maybe too much information but I definitely add in all of the details as everybody knows :)

      • T1OOO on 28/10/2019 - 08:19
        +1

        nah the bus isnt the issues, lugging the forsale sign an would be the issue.

        • AlienC on 28/10/2019 - 13:42

          Ah yeah you are right.

          But I mean nothing like free advertising lugging that through public transport just gotta wash the shame away after and start with no dignity so I am half way there.

  • onetwothreefour on 26/10/2019 - 22:10

    Get the highest price you can, who cares what the new owner will use the property for.

    • Lysander on 28/10/2019 - 14:39
      -2

      You will if as a result of people buying AirBNB properties you and.or your children cannot afford a rental or to buy a house in the future.

  • gimme on 26/10/2019 - 23:34
    +1

    If you can't figure out the obvious choice you will have bigger problems my friend

  • askme69 on 27/10/2019 - 00:18
    +2

    Sell it to Dammo.

    Why add misery to the other people living in the block with another shit Air B'N'B place.

  • Name on 27/10/2019 - 01:03
    +2

    You have no obligation to the neighbour. Surprised you're weighing up taking a lower offer just because they made an offer first.

    I'd just tell the neighbour that your existing tenants had a mate who made an offer of xxxx, let the neighbour know you're seriously thinking of taking it and see what they have to say. There won't be any hard feelings from the neighbour and if there are who cares, they're not your friend and you'll never see or hear from them again anyway.

  • runnerj on 27/10/2019 - 05:53

    Sounds like it would be a hassle to sell to the neighbour. They don't need to know your business. Just sell to Dammo via your solicitor.

  • Downvoter on 27/10/2019 - 07:46
    +1

    Is it Dammo or pronounced “Day-mo”?

    • [Deactivated] on 27/10/2019 - 07:49

      It is a contraction of the words "damn" and "ammo" meant to save time on the battlefield.You pronounce it whichever way you like.

      • Downvoter on 27/10/2019 - 07:52
        +1

        I thought his real name might be Damien (Damo)

        • [Deactivated] on 27/10/2019 - 08:00

          It is but he prefers to be called 'Dammo' . He looks more like a gamer than a soldier.

          • Downvoter on 27/10/2019 - 14:52
            +2

            @[Deactivated]: Ah okay, so it is Damo

            • [Deactivated] on 27/10/2019 - 14:57

              @Downvoter: What's in a name Mick Mike? Wouldn't a rose by any other name smell just as sweet? ;)

    • idonotknowwhy on 27/10/2019 - 12:54
      +1

      I knew one of these.
      His name was Damien, but he preferred Dammo, pronounced "Day-mo".

  • slow on 27/10/2019 - 07:50

    It is not sold until you have the money, despite what potential buyers say, so I wouldn't risk upsetting either of them. How fixed is Damo's offer? Do you have it in writing? I would go to the neighbour and tell him you have had an offer and give him the opportunity to make a counter offer. If he says no your conscience is clear. If he makes one you have more money

    • [Deactivated] on 27/10/2019 - 08:06
      -2

      If he makes a counter offer, wouldn't we have to go back to Dammo? :(

      • jimdotpud on 28/10/2019 - 14:58

        bring them both to the apartment, get them to lay out their best offer or fight it out mini auction style, top dollar wins. you have given both the option (not gone public) to give their best, and also avoid commission and advertising fees

  • Hardlyworkin on 27/10/2019 - 08:18
    +1

    Only ethical dilemma I see is not letting someone buy their dream home so that you can sell it to someone who just wants to Airbnb it.

  • knasty on 27/10/2019 - 08:54
    +4

    When my parents sold their house they took an offer 5k less than another bidder because the couple (supposedly) loved the house and wanted to move in and keep it as a family home. Afterwards they put in uni students…selling houses is business and $$$ counts.

  • HeWhoKnows on 27/10/2019 - 09:41

    Well the obvious is to take the highest price!

    As a courtesy you inform your neighbour and see if they want to put in a better offer.
    If not then its a done deal with dammo.

    The real question is….
    Are both offers well under the market value of the property?

    Get a few real estate agents opinions before you sell just to make sure you are not dudding yourself.

    • Skramit on 27/10/2019 - 12:05

      I’m getting the impression OP wants to sell it without an agent to save on fees. But probably ignoring the fact that advertising and agent contacts can massively help improve sale price.

      • [Deactivated] on 28/10/2019 - 08:33

        Not so much to save fees as to cut out the bs and have a quicker sale.

        • Skramit on 28/10/2019 - 08:36

          Yeah but is a quick sale worth not maximising sale price? Weird trade off IMo.

      • HeWhoKnows on 31/10/2019 - 22:08

        I was only suggesting to get a few agents opinions to establish its true value and have something on paper to show the two prospective buyers

  • DiscoJango on 27/10/2019 - 10:08
    +2

    You don’t owe your neighbor a thing? Lol what kind of society do we live in where people fear selling their own assets. Business is business. Need to remove your feelings from the equation, especially your low balling neighbors looking to get a deal.

    • Mr Shooty on 27/10/2019 - 10:19
      +3

      We live in a society.

      • brendanm on 27/10/2019 - 19:47
        +2

        Yes we do murr-ray

      • navyskies on 28/10/2019 - 14:52
        +2

        GAMERS RISE UP

  • bigbadboogieman on 27/10/2019 - 13:05

    I would at least get a formal valuation to ensure I am getting a fair price either way. May be a courtesy call to the neighbours if you have close ties.

  • mousie on 27/10/2019 - 13:08

    Arm's length transaction as there might be something which would go bad during the settlement. Why you would sell to a friend of a tenant is beyond me.

    Also your selling the apartment for a reason. It's really not your business if they use it for Airbnb or run a brothel out of it.,

  • happirt on 27/10/2019 - 14:15

     

    • [Deactivated] on 27/10/2019 - 14:39
      +3

      what are your intentions for selling it? where are you going to live?

      It is an investment property. Although we did live there for a couple of months when we first bought it, it definitely would not be suitable for a family of 5 + ewok + bunny. We prefer to live further from the city where the kids and pets can have a backyard to run around in.

      We've also already bought another IP and have had wonderful tenants move in after we renovated it. They love it so much that they've signed a 2.5 yr tenancy lease. We really need to sell this one to pay off the mortgage on the other one.

      • happirt on 27/10/2019 - 16:37
        +1

        I think it's only fair you tell your neighbor straight up and that you are obviously going to take the highest bidder or if Dammo ends up purchasing, he may end up in an awkward position with his new neighbor.

      • [Deactivated] on 27/10/2019 - 22:30
        -2

        Why the negs?

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