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What does it mean to sell a property by ‘expressions of interest’?

In a sale by expressions of interest, the real estate agent sets a deadline on which date the owner intends to sell the property. This is usually four-to-six weeks after the public marketing campaign begins. Until then, potential buyers can view the property by appointment, or at an open, and decide whether they’re interested and how much they’re willing to pay. If a potential buyer then wants to progress further, they must submit their ‘best and final’ offer before the deadline, or sale end date. The offer submitted must be on a Contract of Sale and will include the terms of their offer. They’ll usually also include conditions of offer, such as finance, settlement date and inclusions. When the nominated closing date & time of The Expressions of Interest (EOI) campaign arrives, the seller and real estate agent together review each of the expressions of interest to determine the winning bidder. In this sense, a sale by expressions of interest combines some of the features of selling by private treaty with some of the features of a sale by auction. However, it’s also a little different because it’s an entirely confidential process. No buyer knows what any other party is willing to offer. Only the seller and their real estate agent ever sees the bids.

What are the advantages of an Expression sale vs Auction?

here a unique high value 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. An Expression sale only requires one interested buyer who puts forth their highest offer confidentially, whereas an auction will usually require multiple parties to bid against each other to bring an acceptable result. Auction bids usually start at a lower amount as buyers test the market to try and secure a bargain. The Expression will lead to a higher price because in an Auction the highest bidder will stop once the lower bidder stops. In a tender sale this cannot happen as the buyers must submit the highest price they are willing to pay because they don’t know what others are bidding.

What happens if there are no offers or offers lower than your expectations?

If an acceptable offer is not forthcoming, you can opt to negotiate with the highest offers or you may consider placing your property on the market as a private treaty sale. Do I have to accept the highest offer made? You are not bound to accept any offer during the campaign. Why has it become more popular recently? Expressions of interest often work best when it’s hard to gauge the market value of a property or the number of interested parties.