AMA VICDOC Spring 2023 - Magazine - Page 57
the cooler months now behind
W ith
us, the spring selling season is
VENDOR EXPECTATIONS
ramping up. Most are familiar with auction
campaigns, but expressions of interests
(EOIs) are less understood.
EOIs see vendors invite buyers to
make an offer to purchase their property,
by a specified time and date.
Prospective buyers submit their
offer over the course of the campaign.
The vendor can then accept the best offer,
or if none meet expectations, the property
can be placed back on the market.
Agents who handle EOIs on a regular
basis often have an information sheet
setting out what’s required throughout
the process.
However, some agents will provide less
information about the process, so it’s
important to have clarity on some key
points to ensure you’re able to put your
best foot forward.
An EOI quote is different from an auction
quote. Is it likely to go beyond the quote
range — which is quite regularly the case
in an auction — or is it likely to sit within
a quoted range? While you might not
receive a definitive figure, probing can
help draw out a more defined price range.
The quote range can be found in the
statement of information.
ASK FOR A COPY OF THE CONTRACT
-
If a contract is not yet available, it means a
formal offer can’t be secured. It may mean
the vendor still has a number of matters
to finalise before they are able to lock in
a potential offer.
CLARITY ON SALES CONDITIONS
-
What are the conditions within the
contract and is there any room for
flexibility? Are you able to buy the
property subject to a building inspection
or does it need to be carried out
beforehand? Is there any information
in the contract of sale that’s missing?
LEVEL OF COMPETITION
-
Having an idea of the number of people
you are competing against can help shape
your approach to the campaign. The agent
is not obligated to disclose this, but any
information you can garner is valuable.
-
SETTLEMENT TERMS
-
Understanding a vendor’s settlement
timeframe preferences can help you
shape your offer accordingly, to ensure
you don’t miss out on a property due
to discordant timeframes.
CAMPAIGN TIMEFRAME
-
This is a consideration specific to
expressions of interest. Does the campaign
conclusion date need to be reached before
the vendor accepts an offer?
THE OFFER PROCESS
-
How many opportunities do you have as a
buyer to make an offer? Is it a one-chance
opportunity with a best and final offer?
Or will the agent give you the chance
to make a higher offer if you’re sitting
marginally below your competition?
Buyers who take the time to
understand the particular
dynamics at play before
they enter into an EOI, give
themselves an edge against
their competitors.
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