Price on application POA Does it work?
By Shaun Adams
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NEWSLETTERPrice on application POA Does it work?
[Edit after further advice this policy is now breaking rules from The Consumer Protection from Unfair Trading Regulations 2008.]
This is a phrase used instead of a numeric price on some property for sale. It is used when the owner or agent want to keep the actual price a secret. Those in favour feel someone interested will contact the agent and push them into making that enquiry.
Does it actually work? In our experience definitely not. Why? 1. People can’t be bothered to call up when we are all time precious. 2. You can work out the price because internet property portals still need a secret numeric price to know where to display this property. A user can easily work it out to see which prices it falls between.
POA is old fashioned and annoying for potential buyers, imagine if travel agents started using it, would it put you off them?
Always listen to your agent’s advice, remember – price to entice.
National Trading Standards have said Price On Application/POA is hiding the price and breaks Regulation 6 of the CPRs (The Consumer Protection from Unfair Trading Regulations 2008). Their view (and the view of the Competition and Markets Authority) is - consumers need all material information in order to make an informed transactional decision. Price, is clearly material. Knowing price is fundamental because of affordability and failing to disclose a price is an example of a misleading omission (price is one of the main characteristics to a prospective viewer). Consumers should not have to enquire further about the price, ie, by contacting the agent via phone or email or visiting the branch office to even decide whether they wish to make an appointment to view, or even to decide not to even pursue that property at all.
Regulation 6 of the CPRs (The Consumer Protection from Unfair Trading Regulations 2008) (known as the CPRs) – Misleading Omissions – A commercial practice is a misleading omission if, in its factual context, omits, hides or provides material information in a manner which is unclear, unintelligible, ambiguous or in an untimely manner
Our view is to be honest, ethical and upfront with as much information as possible for buyers to make informed choices on enquiring about properties.