EOI purxhase - need some advice

[handyandy]

Hi All

AM interested in following up on a commercial property which is listed as EOI.

Have only ever done one EOI previously where I was not successful and really didn't learn a lot through the experience. In retrospect, on that occasion, I should have tried harder to get in behind the process as I consequently met the vendor and could have opened further negotiations (maybe).

So for those who have done some or even have a view on the subject what is the best structure for the document? How much info do you insert in the document and how much is left for later negotiation?

Any help greatly appreciated. I am still to find out what the feel is in regard to this property ie haven't even discussed with the RE yet.

Cheers

 

[Dazz]

G'day handyandy,

I keep them to a simple 1 pager.

At the end of the day, they are looking at just one number. Simple really.

Here's the format I sent off to a Vendor 6 months ago.

Happy for you to copy the format.


In terms of the EOI process, I find it a bugger of a process....the Vendor has 100% of the power and you as Buyer have absolutely nil.....but they are the Owner so there ya go....nothing can be done about it.


Good luck.

 

[acer]

Have to agree with Dazzling, price is the determining factor - so if it falls short.......

Have participated in 3 EOI and refuse to play again. Found the process questionable. You disclose your position, whilst the seller sits back and can at any time can change theirs, to the point of withdrawing from sale.

Regarding documentation, normally EOI handled by larger firms will have formal documents (prepared by vendor) that you request / submit. The formal submition may also request details about you, assisting the vendor in identifying credibilty of purchasers.

A mortgagee EOI, ie fire sale, are more "interesting". Wont say much more but whilst inquiring on such an EOI, calls were not returned, documentation that was sent never arrived etc etc. Hard to get a look in at times.......

A good starting point would be to feel out the agent. See if they hard to deal with or unrealistic, and go from there. Buy on value not projected value, as many will talk up price based on future value........but you need to cover holding costs to stay intouch.