Expressions of Interest (buying house)

[Anne B]

Hi all, we have seen a house we are really interested in buying but the sale method is 'Expressions of Interest'.

 

Has anyone had any experience of this method? I have read up on the internet what it means, it seems as if it is a blind bid/offer and you don't know if anyone else is interested in the property or what they are offering either. There isn't even a price range given for this property so it is very hard as a buyer to know what kind of offer to put in.

 

If anyone has any experience of this from a buyer's or even a seller's point of view and has any hints or tips (and pitfalls to avoid) it would be much appreciated. I've only ever bought houses the traditional way in the UK where you put in a low-ish offer and then negotiate with the seller to get a mutually agreeable price. This 'expressions of interest' seems to have all the power in the hands of the seller not the buyer, or am I misinterpreting how it works?

 

Thanks in advance.

[Guest Claire-n-tel]

Hi Anne! Sorry i can't answer your question but someone in real estate one told me if you get up a list of houses in a place on an internet surch ie realestate.com and select sort by price, although it won't display a price it will place it in the correct possition.

 

Not sure if this is true but worth a try

[flossybeth]

No experience sorry but I think you're right in thinking that you bid what you think it's worth and fingers crossed - I suppose it either works in your favour or it doesn't in that you could put in a really high bid (without knowing) just to secure it or you could go low and miss out completely (again without ever knowing). Although I suppose if you talk to the agent they might be willing to tell you what sort of price might get you the property. Alternatively you could look at other properties in the area and gauge what they went for and compare to the one you like.

 

I think Scotland works on a system similar to this (I've watched Phil and Kirsty...)

 

Good luck with it though, if it is the one you want.

[Ktee]

Hi Anne

I can only talk of my experience in Victoria, but agents usually use Expressions of Interest if they themselves don't know the value of a property. Usually an agent looks for comparables in the same area and uses this as a guide on how much to market the property for. One thing to remember is a property is only worth what someone is willing to pay.

Have a look on here http://www.oldlistings.com.au if the property has been marketed before it may have the price on there along with what other properties sold for on that street

[srg73]

The more I read about Real Estate agents and tactics, the more I become concerned. Unfortunately I do not take to hard salespeople very well, neither do I appreciate being messed around, just simply sell me what I said that I agree to buy!. You can imagine I did not take well to being gazumped whilst buying our UK house and ended up only dealing with the manager and ultimately being successful in purchasing the house. I'm not aggressive just determined and want to be dealt with in an honest manner.

 

S

[Guest Guest75]

It will be the best price the agent can present to the owner - as said perhaps unsure of the market price and probably "testing the field"

 

I would not muck around - be direct with the agent and ask what the vendors are expecting .............if lots of umming and arring goes on - they don't know or are just plain greedy.

 

Any agent worth their salt will at least give an indicator as it in their intrest to sell the property.

 

Do a bit of research on sold property's in the area,see if they match up and then come up with a price you would be comfortably and happily pay. Do not go to any upper limit or this will bug you for the term of ownership of that property...... "Did I pay too much?"

 

Be prepared to walk away unless it really is the house of your dreams.

 

 

Done a fair bit of haggling in the property market and it pays to be sure of yourself.

 

"First and Final Offer" often gets things moving - put this in your offer / email and stick to it.

 

 

Have fun!!!

[Ktee]

Another thought although it will cost you money is to get an official valuation done on the property. As at the end of the day your bank is also not going to want you paying over the odds if you are taking out a mortgage on it.

[Anne B]

Hi Anne! Sorry i can't answer your question but someone in real estate one told me if you get up a list of houses in a place on an internet surch ie realestate.com and select sort by price, although it won't display a price it will place it in the correct possition.

 

Not sure if this is true but worth a try

 

Yes, I had done this just for the suburb but there aren't that many houses for sale there, so there are big gaps in prices between houses. Your post made think to add in a load more suburbs to the search, therefore making it a bit more accurate. This definately puts the price in the range that I thought it was.

[Anne B]

No experience sorry but I think you're right in thinking that you bid what you think it's worth and fingers crossed - I suppose it either works in your favour or it doesn't in that you could put in a really high bid (without knowing) just to secure it or you could go low and miss out completely (again without ever knowing). Although I suppose if you talk to the agent they might be willing to tell you what sort of price might get you the property. Alternatively you could look at other properties in the area and gauge what they went for and compare to the one you like.

 

I think Scotland works on a system similar to this (I've watched Phil and Kirsty...)

 

Good luck with it though, if it is the one you want.

 

Yes, my fear is that we go in too high and pay too much for the property, or else go in too low and lose out. At least at a conventional auction you know who you are up against, what the reserve is etc so all the cards are on the table.

[Anne B]

Hi Anne

I can only talk of my experience in Victoria, but agents usually use Expressions of Interest if they themselves don't know the value of a property. Usually an agent looks for comparables in the same area and uses this as a guide on how much to market the property for. One thing to remember is a property is only worth what someone is willing to pay.

Have a look on here http://www.oldlistings.com.au if the property has been marketed before it may have the price on there along with what other properties sold for on that street

 

Thanks - if the agent doesn't know how much it's worth then what chance have I got!!

I had a look on oldlistings and onthehouse and can't find any evidence of the property having sold recently, so I assume the owners have had it since new, which is about 25 years. The decor certainly reinforces this view.

[Anne B]

It will be the best price the agent can present to the owner - as said perhaps unsure of the market price and probably "testing the field"

 

I would not muck around - be direct with the agent and ask what the vendors are expecting .............if lots of umming and arring goes on - they don't know or are just plain greedy.

 

Any agent worth their salt will at least give an indicator as it in their intrest to sell the property.

 

Do a bit of research on sold property's in the area,see if they match up and then come up with a price you would be comfortably and happily pay. Do not go to any upper limit or this will bug you for the term of ownership of that property...... "Did I pay too much?"

 

Be prepared to walk away unless it really is the house of your dreams.

 

 

Done a fair bit of haggling in the property market and it pays to be sure of yourself.

 

"First and Final Offer" often gets things moving - put this in your offer / email and stick to it.

 

 

Have fun!!!

 

Thanks, some sensible advice there. I like the idea of a 'first and final offer'. We don't want to appear too keen.

[Guest Guest12727]

Hi Anne,

When we have come across this during house hunting, the agent has given a guide price verbally.

In fact the first house we liked was this method, but we didn't bid as didn't feel confident - and when we found out after what it sold for we kicked ourselves and still think of that house 'that got away'

This method is sometimes used when the owner really needs to sell, such as when they are moving interstate or already have another house and they need the equity.

Remember that while price is important, other factors often come into play. So things like being able to be flexible on exchange date etc will also go in the purchasers favour, not necessarily just the highest price, so make sure you list any favourable conditions.

Good luck.

[Anne B]

Thanks everyone for your replies - it's all very useful.

 

We went to the bank today to ask about home loans and they looked up an RP Data Property Profile Report for the house, which actually shows what price the agent has listed it at (although this price isn't shown to potential buyers!). Result! Apparantly anyone can request these reports but you have to pay for them (the bank pays an annual subscription). It also gives an estimated price range. So we now feel a lot more confident on the price.