Latest NewsWhy do some property listings leave off the asking price?Saturday, 21 October 2023

If you’re a regular real estate browser, you’ve probably noticed that some homes for sale don’t include a specific asking price on the listing.  Instead, some include “expressions of interest” or “price on application”. But what does this really mean?

Listing a property for sale in this way is a very deliberate advertising tactic designed to elicit intrigue and a response from potential buyers, explains Dr Nicola Powell, chief of research and economics for Domain.  “Ultimately, a home is only worth what someone is willing to pay for it. And sometimes that home can be hard to put a price on,” she says.  “Homes being listed with expressions of interest or price on application are usually unique in some way.”

Listing a property for sale as 'expressions of interest' or 'price on application' is a very deliberate advertising tactic.

And while everyone likes transparency when it comes to buying a home, bear in mind that sometimes, from a seller’s perspective, privacy is important. 

RW’s Head of performance and recognition, Bianca Denham, says removing the price from a listing encourages browsing behaviour in a market that has changed significantly over the decades. 

Both price on application and expressions of interest are effectively a private treaty sale inviting a purchaser to submit their offer subject to various terms and conditions.

Real estate browsing filters can be very specific, meaning buyers may miss a home that could end up being ideal for them, she says. 

“We have a landscape where most people are searching for a new home through portals, and they put all sorts of filters in place to search for their perfect home, including the price they are prepared to pay.

“We’re operating in a market subject to constant change. Advertising a house and removing the price gives a bit more ability not to misquote in this changing market,” she says.

What does ‘price on application’ mean?  

Sometimes, the vendor doesn’t want to openly advertise the asking price of their home, so they opt to ask the agent and list it as price on application. 

These homes are usually unique for a particular reason and can be genuinely hard to put a price on.

“It could be that the home is in a unique location, or it might be completely different to other homes in the street, or could be on a slightly bigger block,” she says. 

A residential listing of this type invites potential buyers to call the agent or use the email function on the Domain website to seek a price guide for the property.

The other benefit to price on application is that agents can collect a number of potential home buyers.

“Price on application is a great way for an agency to capture a new pool of prospective buyers and then match them to a different home that may suit them better,” she says

'Advertising a house and removing the price gives a bit more ability not to misquote in this changing market,' Denham says.

What does ‘expressions of interest’ mean?

A property asking for expressions of interest is seeking the highest price from the market, usually before a certain deadline. Think of it like an auction, minus the auction environment, Powell says.

“Expressions of interest isn’t a particularly common sales method in the market,” she says. “The agent is essentially seeking your silent bid for property, which they usually submitted ahead of a nominated closure date.”

Before submitting an offer to the agent, do your research. “Your decision on what price to put forward in an expressions-of-interest property should be deeply guided by your budget, but you will also need to conduct extensive research of sale prices in that area,” Powell says.

Why leave off the price?

There are a variety of reasons agents choose not to list an asking price.

Before submitting an offer to the agent, do your research.

For starters, they may want to ensure that potential buyers are interested in the specific property for sale rather than using the property listing to simply gauge the general asking price of homes in the area.

“Agents want to ensure that they are being contacted by buyers with intent. After all, their job is also matching the right people to a home hitting the market.”

Powell says don’t be afraid to pick up the phone, talk to the agent, and discuss the price expectations of the seller.

“Opening up those discussions can help you understand how much homes in your desired area are actually going for to understand if it’s in your price band,” she says