Barlows can help with expressions of interest (EOI) in real estate?
Expressions of interest, or EOI, in real estate are used to gather offers for properties without disclosing the price for which the vendor is prepared to sell. Therefore protecting the vendor from exposing to the public exactly how much interest there is in a property.
This is different from an auction scenario where everybody can see whether people are bidding or not. Expressions of interest are used by agents so they don’t scare off potential buyers for a property by quoting a price range. As the auction system has continued to be put under the pump, expressions of interest are becoming more commonplace. Especially in the higher end of the residential property market. They are a form of a blind auction where the buyers can’t see what is actually going on. From a vendor’s perspective they are a great way for buyers to overpay for a property if they don’t control the process.
Expressions of interest are often used when the vendor knows who the purchaser is likely to be and is trying to get the highest possible price from the buyer.
Expression of interest checklist
When negotiating to buy a property that has been put up for expressions of interest, the first question you really need to ask is;
- What is the vendor’s real agenda?
- Do they want to sell?
- Or are they just testing the market?
Expressions of interest are heavily weighted in the vendor’s favour, so you need to move the goal posts more in your favour and change the process.
With an expression of interest situation, the buyer can put forward an offer and then be told they have to wait a week to see if they are the preferred buyer or if their offer has made it onto the final list of prospective purchasers.
Call Angus or Theo to find out more.