LOVE THY NEIGHBOUR
How to sell or buy better
by Neil Jenman
Reading time: Apx 2 mins
It was a British sitcom. It was quoted in the Bible. We are told to “love our neighbours”. Yet many of us never think of neighbours.
In real estate, there are two big ways neighbours can help you.
ALWAYS MEET THE NEIGHBOURS.
First, you should always meet the neighbour before you buy a home.
Some people sell homes because of “neighbours from hell”. Loud music, parties, drunken fights, and unsavoury characters.
Believe it, bad neighbours can make your life miserable.
So, never ever buy a home without meeting the neighbours.
Ideally, you should meet those on either side of the home you plan to buy plus those directly opposite. Explain where you are thinking of buying and that you want to know what it’s like to live in this neighbourhood.
Chances are that you will meet lovely people – and you will indeed “love thy neighbour”.
But gee, if you strike a bad ‘un, you’ll be glad you took this simple step so that you can cancel your purchase.
And be sure to drive past late on a Friday or Saturday – make sure it’s peaceful.
ALWAYS ASK YOUR NEIGHBOURS.
Second, when selling, your neighbours can save you tens of thousands of dollars.
How so?
Sometimes your neighbours will buy your home or know someone who’ll buy your home.
One day I will collate research on how many times, when properties sell, the buyers are people who live nearby.
Often right next door.
It’s not only common, but local people – especially near neighbours – often pay the best price for a property.
There are many stories in the real estate world. Here’s one: Some homeowners in an upmarket Sydney suburb decided to sell. They made the common mistake of agreeing to pay thousands of dollars upfront for “marketing”.
In total, their spend on advertising was $53,000. Of course, their agent was delighted. All that free agency promotion. Plus extra leads for the agent.
And who bought the home?
Yes, the neighbours.
Recently, a friend sold his cattle farm. He was delighted with the huge sale price.
But the commission to the agent, wow, it was heavy. Including those absurd “marketing costs”, my friend paid over $300,000 commission.
Oh sure, he got close to $30 million – and the commission, at one per cent, was a good deal. Really?
Guess who bought the farm?
Yes again, the neighbours. It happens so often.
So please, before you speak to an agent, ask your neighbours. You never know.
If they say no, so what? You have lost nothing.
But if you sign-up with an agent and your neighbour buys your home and you pay $30,000 (or more) in commission, you may feel silly. Especially after reading this article.
Salespeople have a saying: “If you don’t ask, the answer is always no.”
So, whether buying or selling, always ask your neighbours.
If they say yes, you’ll really “love thy neighbour”.
