House Sale - Expression of Interest

Hi all, wondering if anyone has much experience with an Expression of Interest house sale, either as a buyer or seller.

We're looking at a property with a range of $500-600k selling under EOI. That's well with in our range, in fact we can go a bit higher, but as an OzBargainer, I'm mindful about offering higher than I need to (especially keeping in mind the seller has listed a top range).

Now doing my research, I've come to the conclusion that you put in one offer and they review it at the end date. Is that it? Am I right in assuming their will be no chance to counter, or in a real world setting is there a chance that a vendor might say "I like their conditions, try and get them to offer more"?

TL:DR - expression of interest sale - is my only option to put in my highest offer straight up?

Comments

  • +4 votes

    Its like an auction but its run by auspost or a 56k modem

  • +1 vote

    Put in an offer of interest but with an expiration date.

    •  

      Cheers. I thought of that, but wasn't sure it was allowed. I'll try this tact.

      I'm all happy for the vendor to also get a good deal, but nice to also have a bit of an advantage with a sunset clause.

  • +2 votes

    This kind of sale type is alot more common in the UK, its like a sealed bid auction. Usually you are given a time frame.

    They ask you to make an offer, you do not know who you are bidding against, you could be the only bidder for all you know, then they have the option of picking the bid they like the best. They do not have to accept the highest bid, or even any bid at all.

    They basically have all the power, and want to get as much information from potential buyers as they can and use that to their advantage.

  • +2 votes

    Use something like http://house.ksou.cn/ to make sure you know the sold value of similar properties in the area. If you're still comfortable that it's within your price range, put a reasonable offer in writing with a clause that it's only valid for 24 hours. If they are serious they will come back and accept/counter. If not you can keep looking for other properties.

    I wouldn't back down on the 24 hours. It means you are free to make offers on other houses. Make sure you terms are clear (not pending finance, flexible on settlement etc…)

  •  

    Property talk for Silent Auction.

  •  

    I would not feel comfortable with it as a buyer. As a seller - maybe!!
    As others say, they sound you out, and then do a blind auction with interested parties putting their best 'bid' into an envelope and also it is sold under Auction Conditions (no cooling off period, 10% deposit on the spot etc)

  •  

    TL:DR - expression of interest sale - is my only option to put in my highest offer straight up?

    Even if you do that and you're ahead of the competition by several thousand, the agent will still try to talk you up more.

  •  

    Thank you everyone for your advice/feedback.

    I put the sunset clause in (expire COB today) and the vendor has accepted our offer :)

    Very happy considering it was EoI till 6th June.

    •  

      just be careful as often you are the only person seriously interested in the property (my friend just bought something in Bayswater that way). This game enables the agent to lie/twist the truth more to pretend there is interest even though there may not be any. If you know your values then that's great. Make sure you make the contract subject to finance and building/pest inspection and if you are a first home buyer try your luck to see if you can make contract date 1/7/17 so you save up to 15K in stamp duty.

    •  

      Congratulations!

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