Expressions of Interest™ - How It Works
The best opportunity to buy top properties is within the first 30 days on the market. Certainly some properties stay on the market for months but they are the ones which are either overpriced, badly presented or both. 'EXPESSIONS OF INTEREST™(E.O.I)' aims to end that by properly marketing the property and allowing all potential buyers every opportunity to negotiate.
Unlike an auction where there is no expected price guide, a 'Buyer Inquiry Range' is provided as a general guide between where you should negotiate. Rather than having to negotiate the vendor's price down, as in conventional sales, 'Buyer Ranges' allow a 'win/win' negotiation between purchaser and seller.
When a property is marketed with the traditional fixed price, sellers always ask about 10% above the market price for a number of reasons. With some it is because they have a fear of underselling. With others, they may have an over-inflated view of what their home is worth. At the very least, all sellers will want a buffer to allow for any negotiation.
On the other hand, the pool of buyers looking for a property in a suburb and a range react entirely differently. They form a triangle with very few above the market price. Most will look 10 - 15% lower than what they will finally pay because when they find their dream home, even if it is above what they intended to spend originally, they will buy it.
The fixed price system services neither the sellers nor the buyers. Sellers' homes stay on the market for a long time and sell for much less than they anticipated. On the other hand, buyers miss out on seeing those properties therefore miss out on the opportunity to buy their dream home.
As a result, a new system was invented. This involves a “Buyer Inquiry Range” and this is how it works:
Instead of setting a fixed price which eliminates at least two thirds of the buyers, a range is set to attract buyers looking within that range. In other words, if you are looking in this range, you should come and look at this property and maybe you will be able to successfully negotiate it.
What Do I Do?
You have two options you may take.
After deciding realistically what you are prepared to pay for the property, (to assist you to establish this we suggest you compare it to others you have seen) you may place an offer at any time prior to the 'E.O.I.™' date. Our agent will fill out your offer and immediately present it to the vendor/s.
If you are not quite certain, you may register your interest and you will be contacted two days prior to the final date to see if you wish to firm up a formal offer. If you wish we can also contact you should another firm offer come in before the 'E.O.I™' date ...., just indicate on the form.
In other words, the owner will consider all offers prior to and for a 'consideration period' after the 'E.O.I.™' date, however may choose to accept an offer at any time.
If you wish to make an offer please discuss it with our representative. On the other hand, if you wish to register your interest simply fill out the form which again will be provided by our representative.
How Your Offer Will Be Handled
We work with integrity for buyers and vendors equally. Our promise to you is that we will never reveal your offer to another buyer and give them an unfair advantage over you. We simply ask you to offer what you are prepared to pay to secure the property.