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What does POA mean in Property?

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Buying a house is a difficult and stressful process, and estate agents have taken the saying ‘if you have to ask, you can’t afford it’ to the next level with use of acronyms such as POA, OIEO and guide price

So, what does POA mean in property?  How will it affect you when putting in an offer on a house?

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What does POA mean in property?

POA stands for price on application.  For unique or expensive properties, estate agents tend to keep the price private, and that’s why you will see POA next to their Rightmove listing.

Having said this, you can call the estate agent provided you show real interest. They may tell you the price over the phone. 

Why do estate agents put POA on properties?

Using POA gives the property a feel of exclusivity, and it is used for more expensive properties, as you can only find out their asking price by showing interest.  The seller could be a celebrity who values privacy, or the owner wishes to keep the price private from family or neighbours.

POA can be used to allow the market to dictate what the property is worth if:

  • an estate agent can’t decide on a price
  • can’t agree a price with the vendor

The property can be put up for sale without a commitment to an agreed price, therefore allowing enquiries from prospective buyers to help determine the price.

Some estate agents believe the mystery of POA will create the buzz, and the interested buyers will want to get in touch to learn more about the property.

An estate agent can use POA to their advantage because any prospective buyers will have to get in touch with them to ask for the price. They will then have their details on a database to market other properties that come up for sale.

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Unique properties or properties that exceed a seven-figure-sum valuation have POA displayed in their listings.

Does POA work?

There’s no right or wrong answer here, as it depends on your circumstances and preferences. 

Sometimes estate agents can input a secret price that is lower than the actual price in the hope that someone filters the properties to see the lowest-priced properties first. It would come up nearer the beginning of a list in the hope that more people will see it.

POA can put potential buyers off because they believe that if they have to ask for the price, it probably means they can’t afford it.  Properties with POA tend to be more than £2.5m.

Others will not bother asking for the price because they may be in a rush to buy a house – and will go for properties that have prices displayed.

POA is quite an old-fashioned method and is deemed an unlawful practice by the Trading Standards.

What about other estate agent sales terms?

You may have seen OIEO, OIRO, guide price and offers invited.  Each of these confusing terms has a different meaning.

What does guide price mean?

A guide price is the approximate value an estate agent feels a property is worth.  The reality is that estate agents may put a property for sale with a low guide price to attract viewings and offers.  Guide prices work well in areas where there is a shortage of stock and plenty of demand from owner-occupiers.

By putting in a guide price, an estate agent lets the market determine what a property is worth by inviting offers.

The asking price tends to be slightly higher than market value in the hope that a motivated buyer will pay for it, or it leaves movement for negotiations.

What’s the difference between the guide price and asking price?

Guide prices tend to be lower to encourage interest and offers from potential buyers.  The asking price is the price that a seller is willing to sell for and may be willing to negotiate on it. 

The asking price tends to be slightly higher than market value in the hope that a motivated buyer will pay for it, or it leaves movement for negotiations.

Most estate agents overvalue their properties by 5-15% to win the instructions. 

For instance, if a seller wanted £200,000 for their property if their asking price is £220,000, the buyers are likely to haggle and end up paying £200,000 or more.  Buyers tend to pay slightly below the asking price to feel they are getting a good deal.

In summary, a guide price is slightly below the true value of a property to encourage offers and create a bidding frenzy, whereas an asking price tends to be higher than the market value – leaving room for negotiation.

What does OIEO mean?

OIEO is abbreviated with offers in excess of

OIRO is another acronym that stands for offers in the region of.  OIEO is used when the seller wants more money for their property than what an estate agent believes it is worth.

Offers in excess of can often put off any potential buyers because they feel their offer will be rejected.  Provided that your offer isn’t too low and isn’t considered to be a ‘cheeky offer’, then you can still put it forward because the seller may not have received any other offers.

If you are looking to put in an offer on a property with OIEO, but your offer is below their expectation, then it is best to make it clear what you are offering.  Your offer could be a cash offer, meaning there are no delays and no chain.  All these factors can make it attractive to the seller.

According to the Daily Mail, 85% of properties sell for less than the asking price

Houses that are difficult to value because there are no sold comparables or not many on the market are listed as OIEO (offers in excess of).

What does offers invited mean?

Offers invited are used when the agent isn’t too sure about the true value of the property, so they are inviting views and buyers to make offers. 

The seller has probably had enough with the property sitting on the market and, therefore is inviting offers.  Don’t forget to remind the estate agent that you are a proceedable buyer with no property to sell, if that’s the case, and if you are a cash buyer make it clear as part of your offer.

Whether you are looking to sell your property or wish to put forward an offer, we are giving you an insight into how we make offers.

Property Saviours are genuine cash house buyers.  If you sell to us, we can complete it very quickly.

This has several benefits for YOU:

  1. You will have our 10% deposit to do with as you wish if we don’t complete the sale within an agreed timescale.
  2. You will have certainty that the sale will go through. Statistically speaking, around 99% of all properties with exchanged contracts are complete.
  3. You have a fixed agreed price for your property, which means there’s no room for haggling. It sounds silly, but some companies will exchange and complete simultaneously on the same day.  Surprisingly on the day of completion, they will drop the price by tens of thousands of pounds – as featured in this BBC article!  Because we are ethical buyers, we will give you our word that this wouldn’t happen by exchanging contracts fast, it demonstrates our firm commitment to YOU as a seller.

You too can sell your property to Property Saviour as one of very few genuine cash house buyers in the UK

We will need to get more information about your property and make arrangements to view the property.  We will then make you a 100% cash offer for your property and agree to a completion date that suits your timescale. 

Start selling your property today by calling Property Saviour on our 24-hour line at 0113 320 6700.

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