Getting a Home Loan in Australia if you're living overs...
29 Nov 2023
There is a lot of terminology to wrap your head around if you are new to the real estate game, so you may not know what EOI means. Huh, what’s that?
In Australia, there are three main ways to sell a home: auction, private treaty, and the less common method expression of interest (EOI). Whether you’re a buyer or seller, understanding how each selling method works is vital in ensuring you know how to play ball and what your options are.
This article will run through the definition of an EOI, how it works, and the pros and cons from both sides of the fence (buyer or seller).
Selling a home via EOI is a sale process whereby prospective buyers are invited to submit their highest & best offer by writing on a property on or before a certain deadline.
An EOI is similar to a silent auction or bidding approach, as there’s no price guide given to buyers and there is a due date by which the property must be sold. It is essentially up to the buyers to decide how much they are willing to pay since they’re given no formal guide to the home’s worth.
After receiving all offers, the vendor will then either choose an offer to accept, opt not to sell if the offers are not as high as expected, or contact the highest bidder to continue negotiations.
EOI campaigns tend to be more of a premium property tactic as demand for and the price of these types of properties can be hard to gauge.
If you are buying a property via en EOI, it is important to do your own due-diligence and conduct some research about the home to ensure you don’t pay too much or too little (and potentially miss out).
An EOI can be viewed as a mix between a private treaty sale and auction - however, there are major differences.
Unlike an auction, EOI bids are not disclosed to other parties, only to the agent and the vendor. While an auction will have bidding in real-time (where bids are open knowledge to all attendees), bidding parties at an EOI will only be informed if they are successful. AN EOI sale usually lasts from four to six weeks while auctions are run across one or two days.
Unlike a private treaty, bids made through an EOI are generally not accepted until the set deadline to give all interested parties the opportunity to put their best foot forward. However, this is not always the case as the circumstances of a sale can differ.
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