Advice on Buying Neighbor's Apartment

Good question. I would go with Option B. Option A also has the risk that, once it is listed, someone else could scoop it up before you get a chance (or you could get pulled in to a bidding war). Also, your neighbor is going to learn how interested you are when you "move quickly" to make an offer, so I don't really see the weakended negotating position as a reason not to reach out ahead of time. Plus, the 6% right off the top that the seller saves in a broker fee is likely more than you could negotiate by pretending to be not that interested.

if you are as awesome as Ellie Manning you can write an offer price on a piece of paper and slip it under your neighbor's door.

You are over thinking this. The only option is B. Your interest is in getting the place and to achieve this you should be focused on making sure that your neighbour gets a fair deal, not one that is lopsided. So stop worrying about how to get a best deal for yourself and instead figure out how to achieve a win-win situation.

Yes. Depending on the market for larger apartments in your neighborhood and building, the neighbor knows that the apartment is worth more to you than to someone off the street, so it's not just a question of her saving the 6%.

That A is an option at all suggests that you don't really need the space, so would just do the combo and flip the place.

E.g., my four rooms and the neighbor's three rooms would combine to a six-room apartment that'd sell for maybe $1.5M more than the two separately. The neighbor's no fool and would look to get a good chunk of that premium.

How is your relationship with the neighbor? If it is good or no relationship, I would still try B.

I believe option B makes the most sense since you cut out the broker's fee and any time and effort in finding a buyer.

You can talk honestly with the owner and it may get you far.

My neighbor did option B with me. When I wanted to sell, the guy low-balled me. I sold to someone else and would not entertain his subsequent proposals.

How is it that you have never met your neighbor?

If you want this apartment so badly & it's the only one that will easily combine with yours, do you really think that your neighbor doesn't know this? I'd forsake the idea of saving the 6% & instead hope to pay a not unreasonable sum.

Option C
Try and find a way for a social conversation. In the conversation mention your thinking about selling because you think you want a larger apartment.
Then mention you've considering combining with the OTHER neighbor's apartment, you just don't know if you want to go through the work. (this more desirable neighbor doesnt have to know their apartment is better suited for you).

Now you've planted the seed. If the next conversation THEY bring up the subject good chance they might be interested. If not, you didnt sully the field.

What truthskr10 said. Totally.

Depends on size and price ultimately. Option B seems the smartest route. Engage with them and see what their thought process is on price. You may still have to pay top dollar because the market is crazy in most places and although the trend has been lately for neighbors to purchase, they have also been paying what the market dictates. Do your research and try to ascertain what the real value is and be prepared with some info before you engage.

My neighbor purchased my apartment by getting the broker who originally sold me the unit to aggressively ask me to place my unit on the market. And when I say aggressively, I mean it was nonstop. Every time I saw this broker she would ask me if I wanted to sell my unit. Which I didn't. Finally after she had cornered me in an elevator for the nth time, asking me if I would sell my unit, I gave her my after-tax dream profit price. I was amazed it was accepted. That's when she explained my neighbor wanted to combine units. The price probably would have been lower if I had been asked directly.

more curious how you live next door to someone and don't speak....only in NY.

I've only done this once...but, it worked.

I left a note for my neighbor asking them stop by whenever for a coffee or drink. They stopped buy and after some small talk I just flat out said that I don't know anything about their plans but, when they think of moving on to please let me me first. -and they did. I probably paid a small premium, but in the end I think that they realized that it was easier to just sell to me than it would be to renovate their place, or even touch it up, and put it onto the market. There was a little back and forth with the price, but nothing unpleasant. It took a couple of years, but was worth it in the end.

Try to make an effort to get to know the person you want to get something from. It helps usually.

Good luck!

I agree with what has been said on the board. The OP has never met the neighbor and has no idea of what they plan to do in the future. They may sell the apartment in a few months or might not put it on the market for 10 years. If you let them know you're interested, they may start thinking about selling. If they do, offer them a fair price. Low ball them and they will just refuse to sell to you. Sometimes people might entertain an offer but don't need to sell but if a good offer comes along, they will sell.

do not tell your neighbor you want to buy her apt.

rule of trading: buy things when they are for sale

it is likely your neighbor will notify residents of the building and friends of their sale during the 4 week period prior to the point when their exclusive broker contract gets teeth. At this stage the apt can trade without the absurd brokers' commission. Be sure you have arranged that you will not miss this message.

Have your lawyer contact the seller on behalf of an anonymous, wealthy, private person. Have your lawyer negotiate price/contract. Give up your identity at time of contract signing (if coop), or at the closing (if condo).

otherwise you will overpay--for obvious reasons that any seller with a triple digit IQ would be aware of.

to think being friendly or writng nice notes on nice stationery will cause a seller to be stupid, is stupid.

business is business.

Hmm, I wonder why my apartment has attracted the attention of an anonymous, wealthy, private person through his or her attorney. Seems strange, but its good to know he or she is wealthy and eccentric enough to go through this rigmarole for my apartment.

selyanow first post ever. Congrats. Option B. not worried so much about the 6 percent commission the seller could save, but other interested buyers bidding the price up or creating enough buzz/activity that seller gets close to ask. Of course this depends on the apartment size/neighborhood/etc. You know their apartment is the only floor plan that would work in a combo, but do they?

Who's Ellie Manning? Is that Eli and Peyton's older sister?

Hi there-- uesquest1 and shny, I'm writing a newspaper story about just this topic, and i'd love to speak with you to hear more about how it all worked out. Please send me an email at candace.taylor@wsj.com or let me know the best way to get in touch with you. Many thanks!
Best,
Candace

I agree with Greensdale's observation about yikes' strategy.

You should go with option B .You must talk directly rather using any other ideas.If they want to sell then you can easily buy whenever you able to buy.You interested to buy it then focus on that .

Look at the comps in the building AND the neighborhood before making an initial offer. I had the same thing happen in my building. The buyer who wanted to combine apartments lost out on the deal because he only looked at the comps within the building. He wanted to buy an 1 bedroom apartment to the left of his. This line of the adjoining apartment had a low turnover rate because a lot of them were purchased by investors as rentals. The owner in the adjoining apartment called a broker and found the offer was much too low, even considering the broker's fee. Negotiations broke down. The person who wanted to expand wound up buying a studio apartment to his right for a tad less than his initial offer on the one bedroom.

I actually have gone through this and bought the adjoining apartment .
I ended up paying a premium back in 2008 , and even paid for my neighbor's move to a higher floor in the same type unit , but felt that it was worth it .
7+ years later , it's worked out well for both of us . I have 3 BR that's significantly more valuable , and the seller has better views of the Park