Expression of Interest is a common real estate sale method in New Zealand, however the non-descriptive name can sometimes confuse both sellers and buyers. In truth, it can be a really great way to market your property if you are a seller and a good way to buy a property if you are a buyer. So here is what you need to know…
What is Expression of Interest in Real Estate?
Expression of Interest is a selling method that aims to generate as much buyer interest in a designated time frame. It allows the market to determine the true market value of the property by submitting offers based on their beliefs about what it is worth.
Expression of Interest is also sometimes known as ‘Deadline Private Treaty’ and Set ‘Sale Date’.
Who Can Buy a Property by Expression of Interest?
All parties can purchase a property by Expression of Interest as buyers can submit conditional and unconditional offers. As with most sale methods, the vendor may choose who they negotiate with and a cash unconditional offer is far more attractive than a conditional one.
How Do You Buy a Property by Expression of Interest?
To purchase a property with a sale method of Expression of Interest, you should complete your due diligence as you would with any other purchasing decision and then submit an offer. Since there is no price attached to the property, it is important you research well to submit an offer that is realistic. In some cases, it can be difficult to determine what price you should offer, so it is advised that you seek guidance from a real estate salesperson that is happy to work with you as a buyer.
What Do You Need to Know About Selling by Expression of Interest?
Selling by Expression of Interest is particularly valuable when it is likely a property will be in high demand and multiple offers will be received. As a seller, it is important to discuss the pros and cons of selling via this method to ensure it is right for you and so you know what to expect. In some cases, the offers received might be above your ideal price and you will be very happy, but in others if the market does not believe it is worth what you do, it can be difficult to adjust your expectations. It is important to always remember that as the seller, you have the control and can choose if you negotiate or reject an offer.
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