One of the three methods you can sell a property is an expression of interest (EOI) campaign. It’s run like a private treaty, though it has an end date like an auction. In a sense, it’s the best of both worlds, though auctions still have the advantage when it comes to the cooling off rule in Victoria.
I’m personally a fan of the EOI method. As much as I’ve spent over a decade working with companies that are heavily auction based businesses, I’ve found that my best results have come from expression of interest campaigns. The reason being, it forces somebody to compete with themselves as well as other interested parties. It’s transparent and works prospective buyers to their limits. When it comes to auction, you sell for the next best bid, but who’s to say that the winning bidder didn’t have more money up their sleeve? It’s purely based on when the underbidder runs out of puff.
The only drawback with an EOI campaign is that it still attracts the cooling off period given to buyers, which is three full business days. When setting a date, it’s always beneficial to have offers come in on a Monday or Tuesday, as long as there are no further conditions, then you can have an unconditional offer before the weeks end. From Wednesday onward, the cooling off will drag out over a weekend and give buyers more time to think about their actions, which leads to a higher rate of buyer’s remorse. In saying that, most sales that draw the cooling off period over the weekend still go unconditional as buyers are usually quite excited.
If you’re tossing up which direction to go with your method of sale, an expression of interest campaign may be the way to go. If it’s a very hard decision as you are drawing toward an auction, then make sure your agent is open to selling prior as you can run a bit of both. Set an auction date and if your property attracts strong interest and there’s a possibility that you can sell it before auction, then run an twenty four to forty eight hour expression of interest with the interested buyers. You’ll be amazed with the difference between the winning offer and the underbidder.
The following advice is of a general nature and intended as an opinion and broad guide. For all legal, financial or real estate advice you should obtain independent professional advice to do with the specific nature of your circumstances before making any legal, financial or real estate decisions.