Often buyers get excited when they get an opportunity to view a property that has not yet been listed with an agent. 

Sometimes these can be gems but the vendors often want a higher price in return for the privilege of a private sale. They rarely factor in the savings they will make on agent commissions and advertising.

In my experience, an unmotivated vendor typically wants at least 20% over market value – so that’s quite a premium to pay.

Now, if this turns out to be the home of your dreams, you may decide that it is worth paying the price.

That vacant block next door might mean no neighbours and loads of natural light for the moment, but how do you work out what might be built there and how long it could take?

The first step is to call the local council and ask a town planner whether there have been any development applications (DAs) lodged. Some councils have this information readily available on their websites and by talking to the planner you can get a greater understanding of what is likely to be approved.

If there have been any DAs lodged, you can check what has been approved and what has been rejected. You may need to order the files from archives, depending on how old the application is. You can also see whether a construction certificate (CC) has been issued, as this can indicate that commencement of building works is imminent.

By looking in the file you can see what sort of objections have already been raised by council staff and also the neighbours.

But many vacant lots remain just that for years on end. While there will always be a question mark over what could or will be built there, you may have years of peaceful living before the start of jackhammers at 7am.

Of course, there are no guarantees, so make sure you factor in some sort of discount if you go ahead and buy next door. After all, risk equals cost.