What does it mean when a property listing asks for 'offers’ or ‘expressions of interest’

Listings that ask for ‘offers’ or ‘expressions of interest’ in place of a specified price point are a popular sales method in WA. But what does it mean?

REIWA President Damian Collins

There are many components of a marketing strategy that a seller and real estate agent must discuss and decide upon when listing a property for sale. One of the big items for discussion is which sale pricing strategy should be adopted.

Some will choose a specific price point and advertise that fixed price (eg $650,000), while other sellers may prefer to set a price range (eg $650,000 to $700,000).

Another common sales strategy are listings that ask for 'offers' or 'expressions of interest' in place of a specified price point.

In Western Australia, this pricing strategy essentially means that the seller is trying to determine what buyers price expectations are for the property.

Through this strategy, prospective buyers are invited to contact the selling agent to discuss the property, the price, and the term and conditions upon which the buyer would be willing to make an offer.

Expressions of interest are not legally binding

Importantly, when a buyer contacts an agent with an 'expression of interest' or to discuss their 'offer' they are not locking themselves into a binding legal offer. It is a discussion that only becomes legally binding once they submit a formal written offer.

As a buyer, you may be confused about how to navigate this type of sales process. Like any property that is offered for sale, you should determine the condition of the property and if the features, floorplan and location of the property are in line with your requirements.

Although the seller's price expectations are not revealed, there is nothing to prevent you asking the agent for the seller's expectations.

Helps the seller 'test' the market

In a seller's market, like we are currently experiencing, this method of sale allows the vendor to 'test' the market and see how prospective buyers view their property and what they would be willing to pay.

If you decide you'd like to make an offer, you can present the real estate agent with an offer you think is reasonable.

If you still have questions about how to approach this type of sale, speak to a local REIWA agent for advice or consider engaging a REIWA buyer's agent to represent you. They will be familiar and experienced with this method of sale.