Price versus no price on your property marketing.
Ever stumbled across those real estate listings where the price of the property isn’t disclosed? Instead, it’s suggested interested parties contact the agent, but what’s the benefit of marketing a property with no price?
So, let’s look at why an agent might suggest your property has no marketed price point, and cover the debate that revolves around price versus no price when it comes to selling your home.
Multiple ways to sell a property
As most sellers are aware, there are multiple ways to sell a property, including auction, private treaty sale, and open to offers or tender.
Each has its own pros and cons, but within the private treaty sales method there’s the option to list your property with a price or without one.
On one hand having a clear price for the property in its marketing helps set buyer expectations, but on the other, not instantly revealing that price can have its benefits too, including creating competition.
So, let’s look a little deeper…
Fixed price point
A fixed price that appears on all your property marketing helps buyers understand whether this is a property they can afford.
It sets a firm expectation that the price is set at a certain level but might also be open to a little negotiation.
The benefit of a marketed price point is that it instantly rules buyers in and out, particularly in the market sectors where budget might be front of mind.
In fact, a lot of prospective purchasers search the property portals using price as one of their key criteria. They also tend to have a solid awareness of what else is available in this price category.
No price on the marketing
If your agent suggests listing your property without a price, it’s likely for a couple of strategic reasons:
- It may be hard to set a definitive price because there are few comparable properties in the market.
Therefore, putting it to the public allows market feedback to occur which helps work out where that property should be positioned. - To spark a conversation and pique interest.
If a buyer has to call the agent to glean an insight into a property price, it quickly reveals how much genuine interest there is for a property, and again allows for market feedback.
In a hot market, this can create competition between serious buyers and drive up the price of a property. In other words, it’s a way for the agent to ‘see’ what exactly the market will pay and how much interest there is.
A couple of pointers
It’s important to bear in mind that even if a property is listed without a price, there is the ability for the agent to set price parameters in the back-end of real estate portals.
This ensures the property appears in searches around that price point.
It’s also important to appreciate that listing a property without a price doesn’t have to be indefinite.
If the market gives feedback that a property is worth a certain amount, your agent can then factor this in and set a price within future marketing.
Speak with your agent
If your agent suggests listing your property without a price, be sure you understand why and exactly what they’re hoping to achieve.
Used well, marketing a property minus a price tag can be an effective sales strategy that helps gauge interest, but it’s one you need to be comfortable with as the seller, in the knowledge it’s the right option for you.
How we can help
If you’re considering buying or selling a property, why not chat with one of our friendly agents to understand the state of play in your local market?
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