Selling by expressions of interest

Selling my PPOR in inner west Sydney.
No rush to sell, the agent says the price is potentially going to be a record for the suburb this year ( i.e. bouncing off the suburb ceiling).
The agent is very determined to achieve the record.

After intially trying to sell off market with no takers the agent is suggesting selling by expressions of interest rather than an auction.
Thoughts?

 

Market's headed down.
Unless your house offers vicinity to upcoming or existing Infrastructure (school, shopping, station, etcetera), i highly doubt you should believe what the agent is saying.

Regards

 

Less than 200m to primary and high schools - both with good reputations
500m to railway station.
Close to, but not too close to, west connex
I paid the record price for suburb in 2010.
Located in one of, if not the best, street in the suburb.

What are the down sides of EOI?
Is there any reason an agent would go this way for there own rather than my benefit?

 

Agree with Wylie. I’ve always thought EOI was code for “I’m not the least bit committed towards selling but if some poor mutt want to pay overs I’ll look at it”.

Hence I would always totally ignore these unless the subject was a business in an industry that particularly interested me, or I owned the neighbouring property. Just my take.

 

I get the bit about people who aren’t willing to pay top dollar not being interestd. Well to be honest they are not whom I wish to sell to anyway.

How does the agent benefit from EOI? He doesn’t get paid unless I accept an offer.
Surely it is far easier for an agent to pressure a seller in an auction situation?

The agent tells me that if I go to auction at “the peak of the market” there is a signifiant risk of nobody bidding above reserve. This is why we are seeing a lot more passed in and offers being accepted prior to auction.

 

It means zip
Its totally dependent on market, supply vs demand... next question why not go to aucton... ???market starting to turn but still unique property

 

Your agent is an idiot. You’re trying to get the highest price in the suburb by keeping it a secret by initially trying to sell off market and now by EOI which puts off 99% of potential buyers. Dumb as.

 

Exactly.

 

can't say much. might turn out to be in your favor. But if you are so positive on your property, why not go for an auction?
In the end, whatever pays you top bucks will be your best bet.
However, if the property is too long in the market, you have to lower the price anyhow. Are you willing to sell, opt to be safe than sorry.


Regards

 

That makes no sense to me at all.
Going to auction is probably common in your area and the REA can give a price guide which will help people understand if the property is for them or not - I hate listings with no price.
Auctions at peak of market are what make the peaks. Have a reserve at what you want to accept and anything above that is bonus.
I do think your REA is sensing that you might not be committed to selling so is only putting in a half hearted job. Just my gut feeling from what you've said.

 

OMG!!!!
Such assumptions.
We, the agent and I, agreed to first try his contacts to see if we could get a sale and save on marketing. He got the last record in the suburb so it seemed he might have apropriate contacts.
We would have launched a marketing campaign after a couple of weeks but we delayed as a property around the corner is going to auction and that agent is significantly underquoting (if you look at comparable sales}.
That auction is coming up next week so now we are looking to go to stage 2.

Nobody has yet to tell me the upside to the agent by selling by EOI. If he doesn’t get a sale then he won’t get paid.

I should say we were talking about an EOI with a clear price indication so not just offers in the dark. The highest big in or above the range with reasonable conditions will get the sale. Kind of like selling with a price range and a cut off date.

 

I’d like to sell but don’t have too.

I’ve read that auctions rarely get the highest price the buyer would have been prepared to pay. That is the highest bidder often would have been prepared to pay more.

 

Should have mentioned it would be EOI with a price range. I will accept best offer in or above range with reasonable terms.

Agent appears to be working hard, I told him from the beginning that whilst I’d like to sell I don’t have to so the price has to be reasonable. I don’t have unrelistic expectations, it’s the agent who has been pushing the record. I would probably take anythIng at or over valuation.

 

Just my opinion.

1. I wouldn't be saying that on a public forum with those pictures posted (unless they are not related to your home)
2. I would not be so quick to just accept right away what a valuation comes up with. Valuations are usually always conservative and the end buyer in many cases would be willing to pay more. I wouldn't be leaving cash on the table just because of a valuation.

My 2 cents.

 

Interesting comments, not sure I agree with most on this thread, but that's OK we are all entitled to an opinion.

We currently have a property on the market EOI why? because it is unique and we don't want to go to auction.

It is a development site with a significant home on the property and sort after location, close to CBD, there are at least 4 options to add value with this property, we expect high demand, we want to gage the market and watch feedback.

Perhaps it is the wrong strategy? time will tell, I will report back in the next 6 weeks, as I expect this is the critical time.

MTR

 

What was the purpose of the valuation? By whom (a valuer or agent or bank)?

Bought 2010 - peak of the market?

Setting a street or suburb record is BS, great marketing spin for an agent and poor buying decision by the purchaser. Houses in the best streets will generally set a record in a rising market or when rebuilt or refurbished - it's not that hard.

OFIs are the way to gauge the market from feedback - EOI doesn't provide feedback opportunities. If it's a development site, then it should be marketed as such, if the improvements are too substantial to justify a developer to purchase then it's a house. It will appeal to developers at a price and ppor at another.

Uniqueness is a valid reason to go to auction.