EOI sales are often described as a hybrid of auctions and private treaty sales.
- An EOI lets a property be sold without a listed price, with buyers submitting offers by a deadline.
- EOI is most often used for unique or high-end properties that are hard to price.
- EOI offers aren't legally binding and can include conditions.
- This sales process offers flexibility but comes with uncertainty for both buyers and sellers.
In Australia, there are three main ways to sell a home: you can sell by auction, private treaty, or the less common method, expression of interest (EOI).
Auctions and private treaty sales dominate most residential markets. EOIs, on the other hand, are used particularly for high-end, unique or hard-to-price properties. Understanding what EOI means can be useful whether you're buying or selling.
For example, if you're a buyer and your dream home is being sold by EOI, you need to know how to play ball. On the flip side, if you're thinking about selling, it's worth understanding whether this sales method could work in your favour.
What does Expression of Interest (EOI) mean?
Selling by expression of interest (EOI) means the owner markets their property without listing a price and invites buyers to submit written offers by a set deadline.
Instead of negotiating back and forth, buyers are typically encouraged to submit their best and final offer upfront, including any conditions they want attached to the sale.
EOI sales are often described as a hybrid of auctions and private treaty sales.
Like an auction:
- There's usually no advertised price guide
- The campaign runs for a fixed period
- All offers are considered at (or around) the same time
Like a private treaty:
- Offers are made privately
- Buyers don't see competing bids
- Offers can include conditions such as finance or building and pest inspections
There's no public bidding, and buyers aren't told what others have offered - which is why EOIs are sometimes referred to as a 'silent auction'.
Dr Diaswati Mardiasmo, Chief Economist at PRD, said that buying or selling by EOI was traditionally more common in commercial real estate, but it has gained traction in the residential market over time.
"In these instances, a property will generally be on the market for four to six weeks to allow potential purchasers to view the property. If they are keen to buy, the agent will ask them to complete an expression of interest," Dr Mardiasmo told Savings.com.au.
How does buying and selling by EOI work?
How an EOI campaign plays out can look quite different depending on whether you're buying or selling. But understanding both sides of the process can help you navigate it with more confidence.
How selling by EOI works
If you choose to sell your property by EOI, you won't be putting a price tag on it. Instead, you're asking the market to tell you what it's worth.
Once your home goes on the market, interested buyers submit written offers by the deadline set in the campaign. Some buyers may test the waters with a lower offer, while others may put forward their strongest possible bid to try to secure the property.
This is one of the reasons EOIs are often used for high-end or unique properties, rather than your standard, run-of-the-mill house where comparable sales are easier to find.
Shannon Willcox, a former selling agent at Northern Realty, said properties sold by EOI usually have features that "you can't easily put a price on".
"A wine cellar, golf simulator, gardens, ponds, bars and reading rooms are all examples of features everyone values differently," Ms Willcox told Savings.com.au.
"These features are also likely to attract a unique set of buyers and therefore a smaller portion of the market."
Selling by EOI is similar to a silent auction, except the campaign typically runs longer - often around three to six weeks, though this can vary depending on the seller and the market.
Once the deadline passes, you'll review all offers with your agent. From there, you can:
- Accept the offer you're happiest with,
- Choose the highest or most unconditional offer, or
- Negotiate further with one or more buyers
- Importantly, you're not obliged to accept any offer if none meet your expectations.
How buyers can make an EOI
If you're buying a property via EOI, it's important to understand that you usually won't get a second chance to revise your offer.
Buyers are generally asked to submit their offer in writing, along with key details such as:
- Purchase price
- Settlement date
- Finance conditions
- Inclusions and exclusions
"A buyer's offer can only be shared with the vendor and agent, not with any other parties," Dr Mardiasmo said.
- "It's recommended buyers complete their due diligence - including researching comparable sales and checking for issues like flood risk or zoning - to make sure they're offering a price they're comfortable with."
It's also worth noting that EOI processes can vary slightly between states and agencies, so it's wise to clarify exactly how the campaign will be run before submitting an offer.
Pros and cons of selling by EOI
Like any sales method, selling by EOI comes with both benefits and drawbacks.
Pros
- You're less likely to rush into accepting the first offer, as buyers have a set period to submit bids.
- You can choose the offer that best suits your situation - whether that's the highest price or the least conditions.
- Buyers may offer more than expected without a visible price ceiling.
- Greater privacy compared to auctions.
Cons
- Buyers aren't competing publicly, which can limit price pressure.
- Some buyers are put off by the lack of a price guide.
- EOIs can be less effective when there's a lot of similar stock on the market.
- The process can take longer than a private treaty sale.
- "For this reason, an EOI is often less effective when there is a lot of similar stock available," Dr Mardiasmo said.
Pros and cons of buying by EOI
There are also benefits and drawbacks of buying by EOI.
Pros
- Buyers remain anonymous.
- Less pressure than a public auction environment.
- Offers can be conditional, unlike auctions.
- You only bid what you're genuinely comfortable paying.
Cons
- Higher risk of overpaying if there's limited comparable data.
- You won't know how much competition you're up against.
- The process can take several weeks.
- There's no guarantee the seller will accept any offer.
Should you sell your home by EOI?
Deciding whether or not to sell by EOI will come down to your priorities and your property.
If you're after a fast sale, this method may not be ideal. But if you own a unique home and are open to seeing what the market offers, EOI can sometimes deliver strong results.
Dr Mardiasmo said vendors need to be flexible when selling by EOI.
"Purchasing a home via expression of interest can be a difficult process because of its unpredictable nature," she said.
"Therefore, prepare yourself for the ups and downs, particularly the different price offers that might come your way - it can be a very big range."
She added that realistic expectations are key.
"Have a price range in mind that reflects current market conditions, supply and demand, property condition and future infrastructure plans in the area."
Luke Lawlor, Director at Emergency Services Property Advisors, said EOI can make sense when pricing is uncertain.
"You're putting it out to the market to determine what it's worth," he told Savings.com.au.
However, he said that selling a home by EOI can be a risk - it may pay off, it may not.
"In my experience, some buyers won't deal with properties without a price guide or an indication of what it is worth," Mr Lawlor said.
"A buyer might be able to spend $1 million, and they think it is worth $1 million, so they go through a whole negotiation process only to find out the owner wants $1.4 million."
"Other times - it can pay off, with buyers believing the house is worth more than market price and offering a higher price."
Tips on buying a property by EOI
Dr Mardiasmo said submitting an EOI, even if accepted, doesn't guarantee the property is yours.
"An expression of interest is not legally binding and does not in itself constitute a contract," she said.
She added that EOIs may suit buyers in rising markets, where getting in early can be beneficial - though many campaigns don't result in a sale at all.
Ms Willcox offered the following tips for buyers:
- Decide what value the property's unique features have to you.
- Find comparable properties where possible, even if they're not perfect matches.
- Submit your strongest offer upfront, as negotiation opportunities can be limited.
Alexander Gibson, buyers' agent with Trelease Associates, said buyers should ask themselves two key questions:
- Do I genuinely love this property?
- What would someone else realistically pay for it?
"Focus on the positive and negative attributes of the property and what the buyers are likely to be drawn to," he said.
"If you can work out the demographic of the buyers, it can help you determine where there may be gaps and opportunities among your competition when submitting an offer."
Planning to submit an offer on a property? The table below highlights home loans that could suit buyers navigating an EOI sale.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
