Real Estate: Price on Application (POA) and Expressions of Interest (EOI)
Real estate listings sometimes omit prices, using terms like “expressions of interest” or “price on application” to attract interest and engage potential buyers, promoting direct communication and tailored transactions.
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If you’re a regular peruser of real estate listings, you’ve likely observed that certain properties for sale refrain from specifying an exact asking price. Instead, they may use terms like “expressions of interest” (EOI) or “price on application” (POA). But what’s the significance behind this?
This method of listing a property for sale is a deliberate approach aimed at sparking interest and engagement from potential buyers. Essentially, it acknowledges that the value of a home is subjective and can sometimes be challenging to quantify. Properties listed with EOI or POA typically possess unique characteristics or features.
While transparency is typically preferred in home transactions, sellers sometimes prioritise or require privacy. Removing the price from a listing encourages exploration, particularly in a market that has evolved significantly over time. Both POA and EOI essentially operate as private treaty sales, inviting buyers to submit offers under specified conditions.
Also to consider, the specificity of real estate browsing filters could lead buyers to overlook properties that might actually suit their needs. By omitting the price, listings attract a wider range of potential buyers, potentially revealing hidden value to those who might have otherwise filtered out such properties.
Given the dynamic nature of the real estate market, advertising a property without a price provides flexibility and reduces the risk of misrepresentation.
So, what exactly does “price on application” mean? In some cases, sellers opt not to disclose the asking price publicly, prompting interested parties to inquire through the agent. These homes are often unique or unconventional, making it challenging to determine a fixed price.
Similarly, “expressions of interest” involve inviting bids from the market, typically before a specified deadline. It functions akin to an auction but without the formal setting. While less common, this approach allows agents to gauge buyer interest and solicit competitive offers.
There are several reasons why agents may choose not to disclose an asking price. Primarily, it ensures that potential buyers are genuinely interested in the property itself rather than simply gauging market prices. By fostering direct communication between agents and buyers, it facilitates a better understanding of the seller’s expectations and the prevailing market conditions.
In conclusion, while the absence of a listed price might initially seem inconvenient, it serves a purpose in facilitating meaningful engagement between buyers, sellers, and agents, ultimately leading to more informed and tailored transactions.