Listing without a price- seeking purchasers perspective?

What better place to ask the question than a forum full of investors...!

How do you feel about agents who list property without a price, i.e. "Contact Agent"?

(I did search and found a similar topic, but it was from 2015, I'm not sure how this board feels about "New Topic vs Raising the Dead")

Keep your comments as general as you like so this can become a community resource. My specific reason for asking, however, is below.

Listing without a price seems to be all the rage right now and I think it's a great way to gauge the market interest in the initial phase of marketing. The main catch for me is that recent changes to the law mean that I can't give any price guide at all, which is annoying, because neither my client or I has a problem with doing so. I feel like not being able to give a guide will frustrate good potential purchasers.
I regularly step in buyers shoes to get on the ground and check out houses for clients and friends, and I've never really given a second thought to whether the property is listed with a price or not- but that's because I have a firm idea of market value in my mind regardless of list (or not listed) price.
I feel like the average purchaser doesn't have this perspective and will react differently.

Thoughts?

 

I hate it! BIG TIME

How can I tell if the vendor is dreaming or realistic? It means I have to ring the REA and hope they actually answer their phone and if they don't that they will return my call and tell me the price guide (ok to do that here in Perth).

If they are fishing, I prefer if they use "from $xxx"

In Perth listings without a price will generally take longer to sell and be more likely to go stale. It's an uncool thing to do in Perth but it doesn't stop REAs doing it

 

I've noticed recently when the market changes it could possibly be used to get buyers in at a higher price. Eg January this year house sells $500k. Market slows and current comparibles offering 450-470k. Taking a price tag off it may get buyers thinking to offer 500k.
Not sure if this is the strategy but I've watched a few sitting around and rather than lower the price they go to EOI

 

I dislike it.

It suggest to me that the Agent is trying to add more names to their contact list.

 

Can't stand it,
It normally turns me off it as it indicates that the buyer is looking for more than market money.
Not in line with my approach of buying a bargain
And that mentality of "if you have to ask, then you can't afford it"
That and these two things:

 

Can't stand it. I have moved on from listings without prices many times, as I'm there to buy and not call up and be added to the agents junk mail list or have the agent ask what we think it's worth at this time.

 

In the past when looking to buy I have regularly ignored the listings with no price.

I can understanding using it if you were selling a unique and expensive property (where market value may not be easy to gauge), but when selling a generic property in suburbia, you are probably turning off serious buyers who just move on to a dozen similar properties instead of chasing you for the most basic of selling details.

 

What 'contact agent' says to me is the agent has probably instilled a higher than realistic selling price into their vendors head, so even if I do know the market value I'd probably be wasting my time with this particular listing.

 

Ouch! I knew this sentiment was out there was but I didn't realise it was still so prevalent.

There are some areas in Logan where around half the listings are now listed without a price, so my hopes were that buyers had sort of been forced to come around to it.

If you were well informed and the property otherwise suited your criteria, would it really stop you from enquiring?

I'm looking at listing two properties without a price for the first two weeks- mainly to gauge market interest before applying a list price. We have a firm idea of roughly what the properties are worth based on historic values in the complexes and local area, but the condition of each unit sets them apart. One is in much poorer than average condition and the other in much better than average.

________

@Westminster, "Offers over" is usually just an agent trying to cram down the sellers expectations (unless we're in a sellers market).
@BKRinvesting I don't want you bargain hunters, *turns on salesperson*, we're looking to attract a premium price from an emotional purchaser. Haha!

 

Yes it does. I have been down this road and I'm over it. When prices aren't listed the agent is fishing for someone that is totally clueless on price and might overpay and are never ready to seriously negotiate. What it really does is benefit the agent as he now has an interested party if they call, then can help that caller to purchase one of his other listings when they find out the agent/vendor is asking to much or is just wasting time hoping someone will seriously overpay. Those first couple weeks are so important, I wouldn't want to risk loosing a potential party just to fish for a clueless buyer.

 

One of the first things I remember when I was starting out in real estate is reading that no price = no interest. From personal experience I must say this holds true. I believe it reinforces that the price expectation is too high. The old adage if you have to ask you can't afford it is alive and well.

 

Even though it ***** me I do call the EOI/Call Agent/No Price listings if it meets all other criteria as once I managed to score a bargain as both the REA and the Vendor didn't realise it's potential. If they had put a price on it I think it would have been grabbed even quicker than I could.

But as a rule, listings with no price are called AFTER listings with prices on my side.

I must point out that Perth is a very different beast and 90%+ sales are by private treaty with a very rare auction. We can't even handle the unknown of an auction let alone a listing with no price

If it's a hot market then it's probably ok to go with no price for awhile and see what happens.

 

Yep, for me no price = no interest. I use to try to play the game and call the agent but got too few call backs. Not worth my time. I move to the next property...

 

What about Joe Peanut how do they see it without a price? Does it suck them in? You want to get the person that is willing to pay the most for a sale

I'd think it may suck a few tyre kickers in but there may be one in there willing to stretch themselves or pay an un-researched price

 

Yes. Especially if it's an investment decision. I'd rather not waste my time. Price is a major criteria to shortlist. No price means I can't quickly qualify the opportunity. I'd rather spend my time and energy looking elsewhere more tangible.

PPOR purchase is slightly different.

 

Can I say, hypothetically, that if I had the property 10% overpriced, I would be more likely to attract enquiry than if it was listed without a price?

 

For a unique property, maybe. For a standard house in a standard suburb every buyer with an I phone should be able to guess the price.

 

Listings without relevant information go to the bottom of my pile. I know that's harsh, but I have no patience for sales techniques.