AUCTIONS and fixed prices have a new competitor in Colac’s real estate market.
Vendors are increasingly offering their properties for sale by expressions of interest.
In other words, buyers offer a price they think the property is worth.
Colac’s real estate agents say selling a property by expressions of interest reduces stress for the buyer and the seller.
There are five Colac and district properties currently on the market by expressions of interest.
Colac LJ Hooker director Wayne Mackrell said an expression of interest process was a way for buyers to put forward their best offer without the pressure of a public auction.
“The buyers do their own due diligence on the property, they then put in what they think the property is worth,” Mr Mackrell said.
“In our experience most people who do not want to miss out on a property do make sure they put their best offer in without the pressure of an auction situation,” he said.
Mr Mackrell said he used the sale method for unique properties.
He said a property was unique “because of the location, the uniqueness or potential of the property”.
Charles Stewart Real Estate’s residential sales manager Melissa Henry said expression of interest would not replace traditional auctions.
“There is always room for public auctions, but there is also room for this option as well,” Ms Henry said.
“They’re pretty much exactly the same, it’s just like a silent auction,” she said.
Ms Henry said a reduction in auction results could be a reason why agents were using EOI.
“Why they’re a little bit more out there at the moment is a big question,” she said.
“Perhaps with the way the auction scenarios, the strike rate is quite low in the city and that might be flowing on to Colac.
“We haven’t done any more or any less expressions of interest or auctions of late.”
HF Richardson Real Estate’s Troy Kincaid said EOI was a more strategic way of selling a house because it had a nominated end.
“It’s one of those things, it can create a bit of interest,” Mr Kincaid said.
“They have worked quite well in the past,” he said.
He said he couldn’t see the EOI process taking over from regular sales.
Colac to Coast Real Estate director Lynne Cole said she used EOI for unrivalled historic properties in Colac and district.
“I think it’s a fantastic way to actually establish what a property is worth,” Mrs Cole said.
“A lot of people aren’t big fans of auctions,” she said.