Understanding POA in UK Property Listings: What Buyers Should Know

What Does POA Mean on Real Estate Listings?

POA stands for ‘Price On Application’ and means that the seller has not publicly listed a price for their property. Anyone interested in buying must enquire with the seller or their estate agent to find out the asking price of the property. POA is used whenever a seller wants to keep their property’s price a secret – there could be many reasons for this.

Why Do Estate Agents Put POA on Properties?

Often, a seller will list their property as POA if they want to keep the value of their property secret from neighbours or family members for personal reasons – perhaps they want to keep their finances private. This is often used by celebrities or other well-known people in the public eye, as they want to keep their personal business private.

A property may be listed as POA if the seller and their estate agent want to cultivate some mystery surrounding the property – sometimes the POA tag is used for niche properties with unique features that are valued a lot higher than similar properties in the same neighbourhood. Other estate agents use the POA tag to gather contact information for potential buyers.

Occasionally, the POA tag is used to conceal the fact that a property has had its asking price reduced before. This can be a sign that a seller is desperate to sell, or that there is some problem with the property that caused a price reduction, perhaps a fault or damage found during a property survey. It could even be the case that the seller and estate agent have yet to agree on an asking price for the property. They could be awaiting offers to help them decide on a reasonable asking price. You can also use the POA tag on a house that you are selling.

Pros and Cons of POA

There are a few benefits and drawbacks to POA properties that you should be aware of before looking to buy a property listed as POA, or using this on a listing yourself.

Pros of POA Properties

It helps to maintain seller privacy. As mentioned before, famous people or those well-known in the community may wish to keep their finances and property dealings out of the public eye. Some people may want to keep the value of their property a secret from other family members or nosy neighbours due to personal circumstances or just a desire for privacy.

POA can be useful for unique or luxury homes. These can be difficult for estate agents to place a value on due to the lack of comparable properties in the area. If a regular-looking house has a swimming pool, recording studio, or other unique features that make it more valuable, then POA can be a useful way of listing the property.

POA properties may be more open to negotiation on the price – take a look at the property and make a low offer, it might just get accepted, bagging you a BMV property.

It can hide price reductions. If a property has had its asking price reduced in the past, this can signal to buyers that the seller is desperate to get rid of the property, inviting lowball offers. Keeping the price private can prevent would-be buyers from seeing these reductions.

POA is sometimes used for high-value properties, i.e. those valued at over £2 million. This is done to filter the serious buyers and collect the contact information of people who make an enquiry. This can be advantageous for both buyers and sellers, as buyers can find out the true asking price, and sellers can get contact details of any serious buyers.

Buyers could get a good deal on the property, as the selling price might be less than expected. Other buyers might be put off by the POA label, but all you have to do is contact the estate agent and they should tell you the asking price.

Cons of POA Properties

Many buyers will be put off completely by the POA tag. Either they don’t want to make the effort to enquire, or they assume that the POA tag means the property is out of their budget. After all, POA is often used for very high-value properties. Like many luxury goods, the old adage is sometimes true – if you have to ask the price, you can’t afford it.

A POA tag can be a red flag for buyers, as they feel like the seller and estate agent have something to hide – perhaps there are problems with the property, the price is well above what it should be, or the property price has been reduced. This lack of transparency can put off many potential buyers.

A POA property is more work for the estate agent – they will have to respond to queries about the price that might not lead to a sale. It also creates an additional barrier between the seller and potential buyers, which might not always be welcome.

How To Work Out The Value of a POA Property

The simplest way to find out the asking price of a POA property is simply to contact the estate agent selling the property and ask for the guide price. They might draw you into a conversation rather than just giving you a number, so be prepared to have a chat to reassure them that you are a serious buyer and not just someone fishing for information. This is a time to be cautious – if the estate agent is still evasive about the price or too vague, perhaps this is not a good investment property. You can also take a look at similar properties in the same neighbourhood on websites like Zillow or check out the sales history on the HM Land Registry.

I would advise approaching POA properties with a mix of curiosity and caution – you could land yourself a real bargain, or end up with a problem property you will have to invest more money in to renovate. You should always do your own research before buying a property, including getting independent valuations and surveys before committing to a sale.
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