An Expression sale takes the best parts of a private treaty ‘for sale’ and an auction campaign and blends them together. The main features are:
- Like an Auction, your property is advertised with a deadline for the sale. This means offers to purchase must be made by a specified time and date creating an urgency among buyers
- As in a private sale, offers can have flexible terms to purchase
How long is the property advertised?
The property will generally be advertised on the market for 5-6 weeks to allow potential purchasers to view the property. The Expressions of Interest campaign will close on a specified day and time. If there are purchasers keen to buy, the agent will ask them to complete an Expression of Interest. The fixed closing date motivates interested buyers to act and encourages competition between them.
How do buyers know what a realistic price is for the property?
The Agent will provide a list of recent comparable sales to purchasers to show them the value in your property.
How are offers made?
Each potential purchaser will need to put forward their best and final offer (in writing) on a contract of sale. As well as a price that the purchaser is willing to pay, conditions of sale will be added to the offer, including settlement dates, finance conditions and inclusions and exclusions of the sale.
How many offers can buyers make?
The buyers have only have one chance to secure the property with an EOI sale so you can be assured they are putting their best offer in.
What happens after the Expression sale end date?
After Expressions close, offers will be discussed with you by your agent. It’s important to know that the offers are only shared with you, they are not disclosed between purchasers or anyone else.
What happens if there are no offers or offers lower than your expectations?
If an acceptable offer is not forthcoming, you can opt to negotiate with the highest offers or you may consider placing your property on the market as a private treaty sale.
Do I have to accept the highest offer made?
You are not bound to accept any offer during the campaign.
What are the advantages of an Expression sale vs Auction?
Where a unique high value property is concerned, an Expression campaign will indicate the true value of the property through the competitive nature of the offers process.
Auctions require a 10 per cent cash deposit and an unconditional contract where an Expression sale can be subject to finance or other conditions. An Expression of interest campaign opens the market for your property to more buyers who cannot meet the strict auction conditions of sale.
An Expression sale only requires one interested buyer who puts forth their highest offer confidentially, whereas an auction will usually require multiple parties to bid against each other to bring an acceptable result. Auction bids usually start at a lower amount as buyers test the market to try and secure a bargain.
The Expression will lead to a higher price because in an Auction the highest bidder will stop once the lower bidder stops. In a tender sale this cannot happen as the buyers must submit the highest price they are willing to pay because they don’t know what others are bidding.
Article written by Luke Woollard.
About me: I have 12 years’ real estate experience as a licensed real estate agent and property investor/developer. I’ve sold homes, units, shops, factories and land while buying, renovating and selling my own investment properties. I can show you how to maximise the sale price for your property with an expression of interest campaign for a commercial property or development site. My motto is “Getting ready is the secret of success” (borrowed from Henry Ford)”