The process of inviting buyers to indicate their interest in submitting an offer for or obtain further information on the subject property.
A less common method of sale is expression of interest. Under this system the property is advertised without an asking price to the public at large or a smaller target market who are asked to express an interest in buying the subject property.
The respondent is not expected to lodge a tender for the property but rather the agent after receiving the expressions of interest negotiates with the respondents. If through negotiation a satisfactory price is agreed upon the agent finalises the sale as for a private treaty sale. The expression of interest process is not meant to select the tenderer who will be successful; rather it is the reverse, whereby all parties who can't perform are excluded.
Advantages
A cheap and easy method of testing the market
Maintains seller’s privacy
A useful method if the agent or seller hears of a potential buyer interested in the property. For example, a neighbour may want to expand his/her property.
The agent has full control of the negotiation/selling process
There are no negative results if the method does not achieve results.
Where a large response is to be expected to the advertisement, expressions of interest are a means of limiting final tenders to a realistic number of parties.. Disadvantages
If the method is unsuccessful then the weller will have to revert to one of the other methods thus wasting time, effort and money.
May attract non genuine enquiries as the expected selling price is unknown
Because the system is less well known in rural areas the seller may miss an important target market.For example, if it is known that a neighbour is interested in the property, better results may be achieved by the agent negotiating directly with the neighbour.
The expressions of interest process takes a longer period of time to complete than open tendering, and the risk is always present that a party who may be able to complete the contract is not invited to lodge a final tender