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

        • Name on 28/10/2019 - 01:18
          +1

          Very confusing as to why people are negging that comment.

  • pingualien on 27/10/2019 - 14:43
    +3

    Make them fight and whoever wins the duel gets the apartment

  • fozzie on 27/10/2019 - 16:02

    I would sell to the person that can make the transaction easier. If you involve an estate they will need their cut, so I would sell privately.

    You can still ask the real estate for an appraisal just to see if you are getting the right money.

  • Aust on 27/10/2019 - 17:43
    +7

    Does Damo work on an oil rig and want to pay with PayPal?

    • charligirl on 29/10/2019 - 21:43

      Yeah but his mate has come to check out the apartment, so it is all good.

  • Dreamcast on 27/10/2019 - 18:10
    +1

    Bloody Dammo, always ruining it for everyone.

  • SlickMick on 27/10/2019 - 18:29
    +3

    I'd be seeing some RE just to get a 2nd and 3rd opinion on market value.
    When we listed our property for rent we had people competing for it, and we realised we must have undervalued it.

    If your price is ballpark, then I guess I'd tell the neighbour that you've been made an offer, and see if they're still interested. But if they don't have the cash ready, I think they'd have to up their offer since you're in a situation of just having a conveyancer process the sale and could be done in a week-ish??

    If you decide to use a RE, I'd be negotiating hard on the commission. I once sold a property to a developer that wanted it as well as the neighbours, so we used the same agent. We paid his full commission for doing absolutely nothing - the conveyancer even wrote the contract coz he didn't like the agent's. The ozbargainer in me has regretted giving away that money ever since.
    I'd only be paying a % of whatever they can get above what you've already been offered. They might not want to negotiate, then I wouldn't use them. You clearly don't need an agent.

  • GourmetFoodie on 27/10/2019 - 19:50
    +2

    Your place is clearly in a high demand spot. I'd test the open market via a real estate agent and auction. You don't owe anyone anything, Both Dammo and neighbor sound like they think they have scored a bargain hence their desperation to buy…

  • geoffs87 on 27/10/2019 - 20:24
    +1

    Yeah old mate neighbour has no leg to stand on. Not a lawyer but done a few property law units back at uni. There may have been an offer but no acceptance.

    However, imagine every property transaction was settled off baseless verbal contracts haha. In property, nothing is final until contracts signed and cooling off has passed. Everything else is an invitation to treat, without a right or an obligation!

    Best of luck to them.

  • kiitos on 27/10/2019 - 20:24

    Do you think Dammo would think again if he knew the block was becoming more and more Airbnb?

    • [Deactivated] on 27/10/2019 - 20:28

      He must know as he is friends with my current tenants. My understanding is that he has crashed on their couch a couple of times.

  • GoldenDragon888 on 27/10/2019 - 21:22
    +2

    “We had a deal!”, he screams into the night air
    Like a firemen going to
    A window that has no fire.
    Except the passion of his heart…

    • [Deactivated] on 27/10/2019 - 21:28
      +3

      "It's really hard.
      This poem sucks.."

      Charlie as he approaches Harriet :)

      • GoldenDragon888 on 28/10/2019 - 08:01

        I think your pet-negger is Harriet’s sister Rose. Lol

  • hur91 on 27/10/2019 - 22:24
    +1

    Is Dammo pronounced more like "Daymo" or like "Demo"?

    • buckster on 28/10/2019 - 15:25

      It's definately Daymo, we're in Straya

  • BartholemewH on 27/10/2019 - 23:32

    Your neighbour sounds like a riot. Tell him to go his hardest. Tell Damo to pull his finger out or it hits the open market where he'll get his arse kicked.

  • CalmLemons on 28/10/2019 - 00:48
    +2

    lol @ the neighbour. You should not sell it now, and rent it out to social housing.

  • Name on 28/10/2019 - 01:21
    +1

    Hah the neighbour sounds like an idiot after that update. I'd not sell to him just on principal now.

  • random101 on 28/10/2019 - 07:42
    +1

    New option - I’ll buy it for $10k more then what the other two offered.

    Because I want and love a sea view!

    • [Deactivated] on 28/10/2019 - 08:27
      +1

      And how much would that be?🤔

      • TerryJustTerry on 28/10/2019 - 11:07

        This much

        • [Deactivated] on 28/10/2019 - 11:19
          +1

          According to one of the overly-optimistic RE I spoke to that might be the magic number …🙄

          • TerryJustTerry on 28/10/2019 - 11:22
            -1

            @[Deactivated]: Listen Jar jar, I need to close this deal fast for random101.

            On behalf of random101 am willing to increase his offer to this

            • [Deactivated] on 28/10/2019 - 11:24

              @TerryJustTerry: A $100 million and a free vagina joke?! Property is yours. When can you come pick up the keys?

              • TerryJustTerry on 28/10/2019 - 11:52

                @[Deactivated]: Any chance I can speed up delivery of the keys to 0800 AEST 26/10/19?

                To account for the inconvenience random101 has said he is willing to up his offer

                • [Deactivated] on 28/10/2019 - 11:54
                  +1

                  @TerryJustTerry: Sure. Just knock on the door, my your tenants will let you in.

                  • TerryJustTerry on 28/10/2019 - 11:58

                    @[Deactivated]: Sollddd!

                    It was nice doing business with you.

                    @random101 You are welcome (also don't forget my 5% commission on the buying price is due within the week).

                    • [Deactivated] on 28/10/2019 - 12:23

                      @TerryJustTerry: A pleasure doing business with you too :)

                      Slow day at work? 🤔

                    • random101 on 28/10/2019 - 20:58
                      +1

                      @TerryJustTerry: Excellent work Terry!

                      Love the sea view!! Worth every penny!

                      And of course the sharks with lasssers

                      • TerryJustTerry on 29/10/2019 - 08:48

                        @random101: Always man!

                        Jar jar was a hard bargainer but I feel like I got you the best deal possible (I am thrilled to hear you like the leaser sharks Binks threw in!)

    • TerryJustTerry on 28/10/2019 - 12:00

      I got you mate :D

  • T1OOO on 28/10/2019 - 08:16
    +1

    dealing with people is dangerous, as is giving them too much / any information.

    Its you right to do as you wish, i would tell your neighbor, due to the conduct and behavior we will not be selling to you. In future i suggest he behaves a lot more appropriately if he seeks to gain any success, and happy to have any of his lawyers contact him, and provide the address… add a foot note,.. you bad manners, and only exceeded by your bad manners.

  • oO0Dam0Oo on 28/10/2019 - 08:26
    +6

    Sell it to me. User name checks out!

  • dbglt on 28/10/2019 - 08:45
    +2

    Transacting in property is probably the single biggest financial matter for most people. Don't go with your gut. Be clinical, detached. Highest price, money available, are the only two variables in this. Do whatever you need to make that happen.

  • Dr-StrangeLove on 28/10/2019 - 08:55
    +4

    @JarJarBinks Yousa takin it too hard on yourself. Yousa might already know that there are a lot of legalities involved when transferring a property and it needs to follow all the rules to be valid. Yousa may feel like it's a moral obligation in your scenario but the legal obligation takes much more preference

  • Nuggets on 28/10/2019 - 09:52
    +1

    Don't need to answer if you prefer not to, just curious why you are selling? As it's not mentioned in the original post.

    • [Deactivated] on 28/10/2019 - 09:56
      +1

      I explained it here

      • Nuggets on 28/10/2019 - 10:19
        +1

        Thanks. Good luck with it all.

  • syousef on 28/10/2019 - 10:04

    The only ethical dilemma here (well more of a puzzle than a dilemma) is why you'd agonize over the feelings of strangers instead of trying to get the highest possible price for your family. Your family are the people you have an obligation to. You haven't agreed to a deal. You've agreed to let one person know before you sell. Let them know. Then put it to auction or sell to the highest bidder. Looks of desperation and other nonsense are none of your business or concern. If someone came to you with a sob story begging to have your property for free, would you just give it to them?

  • jno on 28/10/2019 - 11:14
    +1

    You said you would tell him when you were planning to sell so…" Hey mate I'm selling this place to dammo, cheers"

  • Bargain80 on 28/10/2019 - 11:36

    looks like your neighbor is a di*k.
    Sell it to Dammo.

  • kiitos on 28/10/2019 - 12:28

    o I declined the offer in writing ( via sms) but agreed that I would contact him if we ever decide to sell

    What exactly did you say in the reply? Any hint about keeping your offer in mind or something?

    • [Deactivated] on 28/10/2019 - 12:30

      "Hey mate. Discussed your offer with the missus as promised but we're not selling. Will keep you in mind if we do. Cheers." something along those lines.

      • [Deactivated] on 28/10/2019 - 14:04
        +2

        How someone can construe that txt as a "done deal" is baffling.

        • kiitos on 29/10/2019 - 08:21

          I agree!

  • westzod on 28/10/2019 - 12:39
    +1

    So you told neighbour that you're not selling it then you changed your mind for a better sale and an easy transaction that would benefit you, your family and maybe your future investments? OP you're a devil, that poor neighbour…

    • [Deactivated] on 28/10/2019 - 13:32
      +1

      Not quite. Our tenants didn't know when they will be moving out. The husband was promised a job overseas for nearly a year now but it didn't eventualise until last week, when he finally signed the contract. They have been good tenants and we didn't want to kick them out and agreed to a month-to-month lease instead of selling.

      Financially, we were doing ok too as my wife went back to working full time. She is very passionate about what she does and it has been really great seeing the way her eyes light up when she talks about her research :) she has to travel a fair bit for work though and so did I. Something had to give. So now I'm the part-time stay-at-home parent and it has affected us financially as I used to earn more than her. Happy to sell now and be mortgage free and have 1 less thing to worry about. Nothing to do with the neighbour.

      We're also not greedy and would rather help a first-home buyer if we can.

      • charligirl on 29/10/2019 - 21:48

        You sound like an upstanding, honourable guy!

    • [Deactivated] on 28/10/2019 - 13:53
      +5

      Oh, wait! Was that sarcasm?

  • brad1-8tsi on 28/10/2019 - 13:26
    +1

    Your neighbour being upset isn't your issue. Their solicitor will laugh at them and tell them to see him first next time so an options contract can be drawn up.

    I would cease communication with them until Damo gets his act together.

    Damo needs to understand that if he can't pay a substantial, non-refundable deposit and sign a valid contract within 10 working days the property will be on the open market. If Damo has been house hunting for a while he should have his money ready to roll.

  • jaimex2 on 28/10/2019 - 13:49

    Why are you selling?

    Just don't sell and keep leasing it till death.

  • Andard on 28/10/2019 - 14:33

    OP said he would inform the neighbor when they were thinking of selling. Dammo came in with an offer before I can assume OP was considering selling, else he would have informed the neighbor beforehand, but Dammo's offer was so high OP decided on the spot it's time to sell.

    So the dirty here is OP not telling neighbor they decided to sell like he said he would.

    I can understand, I would have done the same in OP's shoes… but OP you should have texted your neighbor after you got Dammo's offer.. even something like:
    OP: "HEY decided to sell!!"
    Neighbor: "Great well my offer still stands"
    OP: "oh damn just got another huge offer. Sorry! Want to bid?"

    There was no deal with the neighbor, there was an initial offer and it was rejected. But still should have told them you decided to sell, even without any details about Dammo's offer.

    • [Deactivated] on 28/10/2019 - 14:43

      I was notified that the apartment will be becoming vacant in the new future + received offer in the same email. Caught up with my tenants the next day for brunch to congratulate them on their new job posting and their friend, Dammo, was there, eager to meet my wife and I and present his case.

      • Andard on 28/10/2019 - 14:57

        the apartment will be becoming vacant in the new future + received offer in the same email.

        well I guess if that's the case, if you informed the neighbor along the lines of, hey the house is available (and at the same time) we've received a higher offer than yours, then no harm no foul…

        they gave you an offer and you declined it. Nothing more to it.

  • snook on 28/10/2019 - 14:35

    Don't go to a REA and lose money for no reason. All you need a conveyancer to draw up a contract and they'll do the rest.

  • Coude Copon on 28/10/2019 - 16:59
    +1

    Whoever you are going to sell to, do not sell it to your neighbour.

  • curtturtle on 28/10/2019 - 17:46

    There is nothing legally binding you to a sale with you neighbour. Screw them for getting shitty. Sounds like your property is worth something. Go the proper way and go through an agent. They will get you more than they cost in commission. You are just ripping yourself off doing it yourself.

  • rlay3 on 28/10/2019 - 18:37

    I don't see the ethical dilemma, you never agreed to sell.

  • MrThrifty on 28/10/2019 - 18:54

    Neighbour has not signed a contract to purchase, their legal threats are baseless. Personally would turn me off selling to your neighbour for this reason alone. If I was in your shoes, I’d go to a few agents and tell them your position i.e. you’ve got 2 buyers already and one (2?) has already made an offer you’d accept. If you get an agent that thinks he/she can get you more than this price, tell them you’re happy to get an agreement drawn up where you pay 0% commission up to the price you obtained yourself, with a very healthy commission rate of 10-20% (depending on your price bracket) on anything they obtain above that. No skin off your nose (unless it sells for less) and big incentive for agent to get you as much as they can. If no agents agree, then the price you’ve already obtained may well be fair market value. At least if you did this you may not get sellers remorse…..wondering if you’d sold too cheap.

  • coolroy on 28/10/2019 - 20:56

    Best price always wins the day.

  • gromit on 28/10/2019 - 21:43

    I see no ethical dilemma here at all. It is your property and you should simply take the best deal. If anything at this point I would go with Dammo to spite the neighbour unless you really did have a deal or the neighbour significantly ups his offer. And no, telling him you will notify him when you are selling is not a deal, it was either an agreement in writing or nothing, even verbal aint worth much of anything when it comes to these situations but it doesn't sound like you had that either.

  • This Guy on 28/10/2019 - 23:02

    Me. I will give you one dollar. And a hug. But you pay my costs (not limited to transfers and travel)!!!

    • [Deactivated] on 28/10/2019 - 23:10
      +1

      The hug is a deal breaker. I don't accept hugs from just anyone. I have some very high standards :p

      • This Guy on 31/10/2019 - 18:19

        Fine. You drive a hard bargin. $1 dollar. No hugs. Pancakes instead. You pay all expenses.

        Deal./s

        • [Deactivated] on 31/10/2019 - 18:22
          +1

          You snooze, you lose…

          • This Guy on 31/10/2019 - 18:23

            @[Deactivated]: You drive a hard bargain. Two pancakes. 50c. You pay all expenses.

            BSB and account number pls so I can pay 5% deposit. /s

  • dono2 on 29/10/2019 - 03:47

    No ethical dilemma, money talk highest bidder wins, if they are good for it

  • Gersman on 29/10/2019 - 05:36
    +1

    If Dammo has to get a loan and his offer is way above the estimations then he would need a bank valuer to do the same IE stack it up to the higher price above the estimations compared to similar recent sales in your area, in this market they are tightening up on valuations and swaying towards the conservative side , so I would be extremely wary of his finance getting approved.

    If you can get an unconditional offer in writing with 10% deposit paid even if it is lower than Dammo' s that should be your main objective subject to finance can always fall over and leave you with nothing.

    Just read he is waiting for the money to come in just wait until that happens until then it's only talk, then get your solicitor or conveyancer to do the rest contract of sale section 32 etc., and explain your situation to them.

  • kiitos on 29/10/2019 - 08:32

    How did you present the news to your neighbour? Seems like a very inflammatory response to whatever you said.

  • [Deactivated] on 29/10/2019 - 09:14

    The person offering the most money gets to buy the house is generally how buying houses work. I would inform the neighbour of your intent to sell, and inform them that you've already had an offer. They can make an offer and you can choose who you want to sell to. This doesn't seem complicated. Hell if they offer more than Dammo you might get a bit more cash out of him.

  • Munki on 29/10/2019 - 15:39

    Can I give you tree fiddy for it?

  • Rohangiga on 30/10/2019 - 00:40

    No screw the neighbour for acting like a jerk and threatening you. No deal was made with im (according to your post) so he hasnt got a leg to stand on and he is acting like a dick. And also why settle for less. Youll be gone from there anyway so you wont have to deal with him

  • eggnbacon on 30/10/2019 - 10:11
    +1

    Hi JJB,

    Reads to me as if you have two options. You could deal with it yourself and save a few thousand dollars (sounds like you may have some time on your hands), or pay a real estate agent to take on the headache of dealing with people. There are flat fee services available which might be worth checking out. Good luck!

    Regards,
    EnB

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