POA Properties
Price On Application (POA) properties are when the costs for purchasing or leasing property are only revealed after a prospective buyer contacts the property owner.
On occasion, a POA is used as a placeholder when no price has been decided on, but more commonly, it is used when the property costs may change frequently depending on a changing or volatile market. Often, it is also used to appear at the beginning or end of a list sorted by price.
In real estate, a property listed with a POA can prevent potential buyers from identifying a downward trend in pricing. That could lead a buyer to hesitate before making an offer in hopes of seeing a further price decrease. A property agent or owner might also use a POA to obscure property cost trends over a given area from becoming public information.
Many property sellers feel a POA will likely limit queries to those who have a serious interest in the property and may be less concerned by price than other factors. The downside, of course, is that a POA property sometimes comes off as overpriced.
Sellers who decide to list their property as POA must maintain a delicate balance between screening potential buyers and giving the impression that the property cost will be too high for any reasonable buyer. Sellers should also avoid giving the impression that the price may be changed increase on a whim. For example, a prospective buyer who arrives in a Lamborghini will be quoted a higher price than a buyer arriving in a Subaru.
A POA listing should only be used after careful consideration.
To learn more about managing community property sales and management, contact us by filling out a form, or email us at HOA@HendersonAssociationManagement.com.
