Buying Through the Expressions of Interest Process
WHAT IS E.O.I.?
E.O.I. (Expressions of Interest) is a unique method of sale whereby a property is available for a specified time frame (usually between 2 – 5 weeks). Buyers are able to make an offer before, or at the closing date (unless sold prior to) sealed and in confidence.
The main purpose for selling a property via Expressions of Interest is to allow sufficient time for a buyer to carry out all their investigations and make a timely and informed decision on a property prior to purchasing it. It also gives the Vendor flexibility to obtain true market indications along with allowing them the best opportunity to secure a sale that is most suitable to their specific requirements.
HOW TO BUY VIA E.O.I.?
The contract is a standard ‘Contract for Sale of Land or Strata Title by Offer & Acceptance’ approved by REIQ. Your agent will prepare this with you.
It is always highly recommended to have a pre-approval in place prior to making an offer. This allows you purchasing edge as it wills always look more attractive to a seller. It also assists in avoiding delays and disappointment. (Please see your agent for further recommendations).
A deposit is stated on the contract, which is payable once the offer is accepted. The more substantial your deposit, the more favourable are your chances of securing the property, as the seller can see that you are genuine. The deposit doesn’t go directly to the owner but held in the Real Estate agents trust account until settlement. Usual deposit amounts at time of contract execution run from 5%-10%.
The time frame you choose to effect your purchase and settle. Usually between 30-60 days from acceptance.
Can I buy the home before the Closing Date?
In some cases, yes. If your offer is attractive to the vendor, they may choose to move forward and accept, rather than wait until the closing date.
How do I organise my finance?
Speak to your bank or broker to pre-arrange finance.
What is the ‘Buyers Over’ price?
The “Buyers Over” price is a guide to assist prospective purchasers, purely so they know if the property is within their budget parameters. If you are unsure of the properties ultimate value your agent will be able to assist you with recent sales to gauge price.
How much does the seller want?
All sellers want as much as they can get! The ultimate value will be determined by the market throughout the E.O.I marketing campaign.
Can I specify any additional conditions when placing my offer?
Yes, however the least amount of conditions on your offer, the more attractive it will appear to the vendor when negotiating in a multiple offer scenario.
How do I make my offer stand out from the pack?
By making your very best offer. With E.O.I, you may only have one opportunity to purchase the property, as it isn’t uncommon to have multiple buyers trying to buy the property. Generally the owners don't negotiate directly, more so examining all offers and accepting the most attractive, outright.
All offers received are then retained by the agent, communicated to the seller, who then makes the ultimate decision based on the terms that best suit their situation.
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Every precaution has been taken to establish the accuracy of the above information but does not constitute any representation by the vendor or agent.