An Expression of Interest sale takes the best parts of a private treaty ‘for sale’ and an auction campaign and blends them together. The main features are:
How long is the property advertised?
The property will generally be advertised on the market for 5-6 weeks to allow potential purchasers to view the property and carry out all Due Diligence. The Expressions of Interest campaign will close on a specified day and time. If there are purchasers that are keen to buy, the agent will ask them to complete an Expression of Interest form. The fixed closing date motivates interested buyers to act and encourages competition between them.
How are offers made?
You can make an offer at any time – however there is an expectation of all offers to be in at the close of the EOI.
Each potential purchaser will need to put forward their best and final offer (in writing) preferably on a contract of sale. As well as a price that the purchaser is willing to pay, conditions of sale will be added to the offer, including settlement dates, finance conditions and inclusions and exclusions of the sale. Often an EOI form is included that may at times be more practical than attempting to sign a contract if there are special conditions.
How many offers can buyers make?
Buyers generally have one chance to secure the property and this is at the close of the EOI. At times however the process may involve a last round of final offers if offers are complicated or even similar or identical.
What happens after the Expression sale end date?
After Expressions close, offers will be discussed with the seller. It’s important to know that the offers are confidential, they are not disclosed between purchasers or anyone else.
Do I have to wait to the end of the EOI to make an offer?
You can make an offer at anytime. All offers are passed on to the owner ASAP for a response regardless of the closing date.
Does the owner have to accept the highest offer made?
No. No offers have to be accepted if an owner chooses.
What are the advantages of an Expression sale vs Auction?
There are advantages for both buyers and sellers.
Where a unique property is concerned, an Expression campaign will indicate the true value of the property through the competitive nature of the offers process.
Auctions require a 10 per cent cash deposit and an unconditional contract where an Expression sale can be subject to finance or other conditions. An Expression of interest campaign opens the market for your property to more buyers who cannot meet the strict auction conditions of sale.
As a buyer the emotion and pressure of an Auction is removed as offers are made both confidentially and in writing at a set time.
For more information on alternative methods of sale feel free to reach out to one of our experienced team members.