Buying by Expression of Interest (EOI): How It Works in Victoria

An Expression of Interest (EOI) campaign is a sale method where buyers submit written offers by a set deadline, usually without a listed price guide. The vendor reviews all offers and chooses the one they prefer — which is not always the highest. It is a process that inherently favours the vendor, but with the right strategy, buyers can protect themselves.

How the EOI process works

The typical EOI timeline looks like this:

• Property is listedwith a marketing campaign but no price (or a vague “price on application”). The agent sets a closing date, usually two to four weeks out.
• Buyers inspect the property and request the Section 32 and Contract of Sale from the agent.
• Buyers conduct due diligence — building inspections, finance approval, title searches, contract reviews — before the closing date.
• Buyers submit a written offer by the deadline. The offer includes the price, settlement terms, deposit amount, and any conditions.
• The vendor reviews all offers and selects one to accept, negotiate further, or reject all offers entirely.

Why vendors choose EOI

The EOI method benefits vendors in several ways. Without a price guide, buyers cannot anchor their offer to a listed figure — which often pushes offers higher. The sealed format means buyers do not know what others are offering, so they cannot bid strategically. And the vendor is under no obligation to accept any offer, even the highest one.

For properties expected to attract strong demand — waterfront homes, large development sites, or prestige properties — EOI campaigns can generate offers well above what an auction might achieve. Agents also favour EOI for properties where the vendor wants privacy or where the expected price range is uncertain.

Your legal protections as a buyer

Because an EOI is legally treated as a private sale (not an auction), you retain important protections:

• Cooling-off period: If the vendor accepts your offer and you sign the contract, you have the standard three business day cooling-off period under Section 31 of the Sale of Land Act 1962.
• Conditions: You can include special conditions in your offer — subject-to-finance, subject-to-building-inspection, or any other condition you need. However, be aware that a cleaner offer (fewer conditions) is more attractive to the vendor.
• Section 32 must be provided:The vendor is still required to provide the Vendor's Statement before you sign. All the usual disclosure obligations under the Sale of Land Act 1962 apply.

How to avoid overpaying

The biggest risk in an EOI campaign is paying more than the property is worth because you have no reference point. Here is how to protect yourself:

• Research comparable sales: Check recent sales of similar properties in the same area using the Victorian Valuer-General data or platforms like Domain and realestate.com.au. Look at sold prices, not listings. A three-bedroom house in the same street that sold for $820,000 six months ago gives you a concrete reference.
• Get an independent valuation: For properties above $1 million, consider paying $300 to $600 for an independent valuation. This is especially worthwhile when there is no price guide.
• Do not bid with emotion: The lack of a price guide is designed to create uncertainty. Set your maximum price based on data, not on how much you love the property.
• Include conditions: A subject-to-finance clause protects you if the bank values the property below your offer price. Yes, it makes your offer less attractive — but it also prevents you from being locked into a contract you cannot fund.

Red flags in EOI campaigns

Watch out for these warning signs:

• Pressure to offer without a contract review: Some agents will push you to submit an offer before your solicitor has reviewed the Section 32. Never do this. Under the Estate Agents Act 1980, agents must make the Section 32 available — if they delay, that is a red flag.
• Unreasonably short deadlines: A closing date less than two weeks away may not give you time for proper due diligence. You can ask the agent for an extension, but they are not obligated to grant one.
• Agent “guidance” on price:If the agent informally suggests you need to offer “above $900,000 to be competitive,” treat this with scepticism. They represent the vendor, not you. Their guidance may be designed to push your offer higher.

Structuring your EOI offer

A strong EOI offer is clear, complete, and easy for the vendor to accept. Include:

• Your offered purchase price
• Deposit amount (10% is standard; offering more can strengthen your position)
• Preferred settlement period (30, 60, or 90 days — match the vendor's preference if you know it)
• Any conditions (finance, building inspection, etc.)
• Evidence of finance pre-approval

Ask your solicitor to review your offer document before submission. This typically costs $100 to $200 and ensures your conditions are properly worded.

The bottom line

EOI campaigns are designed to maximise the vendor's sale price, but you still have legal protections as a buyer. The key is preparation: research comparable sales, get the contract reviewed by a solicitor, set a firm price limit, and do not let the lack of a price guide push you into an emotional overpay.

Ready to check your contract? Upload your Section 32 or Contract of Sale at precontractreview.com for a pre-contract check — typically in just a few minutes.