If you are in the real estate market to purchase property or are selling a house, it is common to come across various terminologies that you may find hard to understand. One of the questions you might ask yourself is ‘what does POA stand for?’ If you are new to property dealings, it can be challenging to understand the term and familiarise yourself with the general language used by these estate agents.
It is essential to understand the terminologies and expressions before you start searching for properties in the market. After all, buying a home is one of the most significant achievements for any individual, and you would want to make sure you are well acquainted with the basics. Here, we shall discuss Price on Application (POA) and other estate agent’s sales terms. So, what does POA mean in property?
Definition of POA
What does POA mean? This is probably one of the many questions that a new property buyer asks him or herself whenever they visit a property portal. As mentioned earlier, POA is an abbreviation of the phrase Price on Application.
Estate agents and property sellers often use POA to keep the price of the house private. You are more likely to come across the phrase Price on Application if you view homes with a high price tag or have unique characteristics. These are the two primary reasons a seller or an estate agent would want to keep the price of a property private. However, some sellers can list the property on POA to conceal the actual cost from their neighbours or family. On the other hand, estate agents use POA to ensure that only serious buyers would contact them.
Even though POA is meant to keep the price of the house private, it can be relatively easy to get an approximate cost while you are on the property portal. Same as other properties, an estate agent or seller has to input a price before posting the house on the portal, only that the price is concealed by POA in this case. Since properties on these property portals rank according to the price, the house would appear around other properties reflective of its hidden cost.
If you are interested in a property that says Price on Application, you can try working out its approximate price by checking out the prices of the houses ranked above and below it. That gives you a rough idea of the property’s price before you can contact the estate agent or the seller.Get an Instant Quote >>
Price on Application – Does POA work?
Generally, Price on Application works for some people but doesn’t work for others. Even though sellers and estate agents use the phrase to conceal the actual price of the property and market a house, a customer can easily estimate the costs. That is because most property portals would not list the house before a seller or estate agent inputs a price, whether or not it would be listed as price on application.
Many sellers and estate agents know that customers can estimate the price of the property. Therefore, most of them will ensure the secret price they input when listing the property is lower than the property’s actual price. Listing the property at a lower price ensures that many potential buyers can view the house. Most customers tend to filter the property to have the cheaper ones come first on the list. That means the POA property would appear in most searches, increasing the chances of finding a buyer.
Additionally, listing a property under POA can be one of the best ways to make it stand out among others on the property portal making it more effective to market a house. Although POA is relatively popular, it is old-fashioned and is rarely used in recent years. Therefore, displaying your property under POA makes it unique, attracting curious potential buyers who would like to find out more about it.
Sometimes, listing the price as Price on Application may not be a good idea for a seller or estate agent. For instance, many property buyers consider POA as old-fashioned and annoying. For that reason, they may not bother calling to inquire about the price. Additionally, the sight of a POA-listed property can be an immediate turnoff for other buyers, especially those searching for low-priced houses. A buyer would think that if they have to inquire about the price, it most certainly means it is high, and they might not afford it.
Displaying a property under POA can also put off potential buyers that are in a hurry to buy a house. Many people feel that their time is precious; that is why most buyers cannot bother contacting a seller to inquire about the price. Therefore, the more information a seller provides about the property, the higher the chances of a buyer contacting them to ask about it.
Other Sales Words Used by Estate Agents and Sellers
Apart from POA, there are plenty of other estate agent sales terms you may encounter when searching for a property online. Some of these terms include OIEO or OIRO, offers invited and guide price. Same as POA, these terms can be confusing, especially for a first-timer. Additionally, it is essential to understand these terms as you have to master the basics to make your house buying experience less challenging. So, what do these terms mean in property sales?
Definition of OIEO
What does OIEO mean? Also written as OIRO (offers in the region of), OIEO is a short form of the phrase ‘offers in excess of.’ You are more likely to come across these two terms if you view a property whose seller feels is worth more than what the estate agent says. Same as POA, using OIEO can work for some sellers but not for others.
Many potential buyers do not bother bidding for a property listed under OIEO because they feel that the seller would reject their offer if it is lower than the price listed. Since many buyers do not submit their bids for such properties, it is not surprising to find out that a seller may not have received any offers from other potential buyers. Therefore, you can submit your bid to let the seller know you are interested in the property. Ensure your bid is not so low that the seller would consider it a cheeky offer.
When bidding for a property with OIEO, but your offer is lower than the displayed price, there are a few ways to make the seller want to sell to you. One of the ways is convincing the seller that you are the best buyer. Many property sellers prefer doing cash deals that complete faster. Therefore, you can convince the seller that you are the buyer they have been looking for by letting them know you are a cash buyer that wants to see the deal through as soon as possible.
Definition of Offers Invited
The phrase ‘Offers Invited’ is the other term you may encounter as you search for a house on internet property portals. If you are new to property buying, the term ‘Offers Invited’ can be confusing. Many potential buyers disregard homes advertised as ‘Offers Invited’ simply because they do not understand what the phrase means and why estate agents use it. So, what does Offers Invited mean?
Sometimes, a seller or an estate agent finds it challenging to value a property. It may be difficult to find the best price tag for a property, especially if there are no recently sold houses to compare to. In such a situation, an estate agent or seller will list the property under Offers Invited. If you see a property displayed under Offers Invited, it means the seller is inviting potential buyers to view and submit their offers.
Additionally, sellers may decide to list property under Offers Invited if it has been in the market for a long time. That can increase the chances of finding a buyer as it invites potential buyers to place their bids. Often, a seller or estate agent would set a deadline for viewing the property and submitting the offers to instill a sense of urgency, ensuring a faster sale.
Estate agents and sellers use POA to conceal the price of a property for either personal or business reasons. However, you can still work out the estimated price of a property displayed under POA by checking the costs of the ones ranked above and below it. Displaying a property under POA can be both a good and bad idea for a seller or estate agent as it can attract curious buyers or turn off potential ones.Get an Instant Quote >>