Property Advertised Prices Explained
Real Estate Agents often use different strategies to sell properties and the advertised price often causes a considerable amount of confusion for potential buyers and even vendors who think their property is being incorrectly marketed.
Understanding the various strategies agents use can help immensely with ensuring expectations are appropriately set and will assist buyers decipher the actual price sought.
‘Price Guide on Request’, ‘EOI’ – generally used for auction campaigns (not as common for private sales).
An agent generally does this to engage potential buyers on an individual basis. It allows them to have a tailored discussion with the individual situation of the purchaser (budget, timing, preferences etc).
Also putting a price on the listing sometimes leads to prospective buyers ruling it out as they make their own assumptions on the realistic price sought and do not attend the open home, so in theory it may increase more qualified buyer inquiry.
‘Price guide over $x’ or ‘Price $x Plus’ – this is used for both auction and private treaty sales and usually the stated price is below the minimum a vendor is willing to accept.
The agent does this to generate interest, and sometimes revises it higher or lower throughout the campaign as market feedback is received.
This is where some agents potentially expose themselves to under quoting as many buyers do not appreciate that the price sought is north (sometimes significantly so) of the stated price.
‘Price $x’ – the price listed is usually higher than price sought to allow room to negotiate. Not significantly over however, for example if $650k desired then property may be listed for $675k.
Range is provided, ‘$x to $y’ – used to provide a more definitive guide to potential buyers to ensure expectations are clear and guidelines are set for negotiation. Selling for the middle of the range is usually a good outcome.
Some agents adjust the range provided throughout the course of the campaign depending on market feedback.
Generally an agent provides a range to the vendor when estimating the property’s worth, with the low point being what they more realistically think the property is worth, while the top end is often optimistic.
Not Disclosed – it is unusual to see a property currently for sale with this on the listing. It is frequently used by agents when the property has sold and the vendor wishes to keep sale price confidential.
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