Expression of Interest or E.O.I. is a common sale method here in Northland. But what does it actually mean for home buyers? We'll explain...
Q. What is a Real Estate “Expressions of Interest” (Also known as “Deadline Treaty” and “Set Sale Date”)
A. Expressions of interest is a form of marketing and selling a property through intensive advertising media designed to capture the maximum attention of buyers within a set time frame. The process is a means of purchasing/selling Real Estate through public negotiations to determine the true market value of the property at that time.
Q. How should I approach the Expressions of Interest Process?
A. The sale and purchase contract, which is your offer, is filled in and then deposited at our branch office and held secure until closing time. Before submitting your offer you may wish to seek legal advice.
Q. Can I submit Expressions of Interest contract if I have to arrange finance?
A. Obviously, an unconditional, cash contract would be more attractive to the vendor and you can organise finance prior to submitting your offer. However, do not hesitate to submit your Expressions of Interest offer, even if conditional.
Q. Can I submit an offer if I have a house to sell?
A. Yes. There are three options (1) You may make an offer conditional on the sale of your property (2) If you are in a sound financial position you can arrange a bridging loan to cover any delay in settling your property (3) You may offer on an unconditional basis but with a longer settlement date giving you time to sell and settle your property.
Q. How do I decide how much to pay?
A. Naturally the more attractive the offer the more likely the chance of having your contract accepted. Although vendors reserve the right to negotiate with the highest or any offer, in most cases a decision is reached on the closing day. For this reason, your submitted contract should be your best offer. A combination of your own instincts, market awareness and guidance from your sales consultant will give you a good indication on price. Obviously, the price you offer is in direct proportion to your desire to own the property.
Q. Can I buy before the Expressions of Interest closing day?
A. Yes. In most cases, you can. Please register your interest with the agent to ensure your opportunity to purchase.
Q. What contract do we sign and what are the standard conditions?
A. The contract is the standard sale and Purchase agreement. This is available from the sales consultant. You should have read and understood the documents. If you need to insert any conditions or vary the settlement date, do so. To ensure the correct wording seek assistance from your solicitor or agent. If your offer is accepted you are legally bound by the terms and conditions of the sale and purchase contract.
Your Harcourts Sales consultant is specially trained to assist you if you have any questions or if you require further information about the Expressions of Interest process.