What Is POA in Real Estate? Term For Real Estate Investors

If you have ever browsed through property listings, you may have come across the term POA.

What does it mean and why do sellers use it

Infographic for What Is POA in Real Estate
What Is POA in Real Estate?

In this article, we will explain what POA stands for, how it works and what are the pros and cons of using it.

read also:5 Quick Legal Steps Become a Real Estate Broker in Beverly

Infographic for What Is POA in Real Estate?
What Is POA in Real Estate?

POA: Price on Application

POA stands for Price on Application.

It is a way of concealing the asking price of a property from the general public.

Instead of dislaying the price on the listing, the seller or the agent requests that interested buyers contact them to find out more about the property and the price.

POA is different from other terms that indicate a price range, such as “offers over”, “offers in the region of” or “guide price”.

These terms give buyers an idea of what the seller expects to receive, while POA does not reveal any information about the price.

Why Do Sellers Use POA?

There are various reasons why sellers may choose to use POA instead of listing the price.

What Is POA in Real Estate?
Some of the common reasons are:

1.To attract more inquiries from serious buyers who are genuinely interested in the property and willing to contact the agent or the seller.

2.To avoid disclosing the price to competitors, neighbors, friends or family who may have access to the listing but are not potential buyers.

3.To create a sense of mystery and exclusivity around the property, which may increase its perceived value and appeal.4.To test the market and gauge the demand and the feedback from buyers before setting a fixed price.

5.To negotiate the price based on the buyer’s profile, financial situation and motivation, rather than sticking to a predetermined price.

What Are the Pros and Cons of POA?

Using POA has both advantages and disadvantages for sellers and buyers.

Here are some of the pros and cons of POA:


1.For sellers, POA can help them avoid underpricing or overpricing their property, as they can adjust the price according to the market conditions and the buyer’s interest.

2.For sellers, POA can also help them generate more leads and inquiries from qualified buyers who are serious about purchasing the property.

2.For buyers, POA can give them more room to negotiate the price and potentially get a better deal, especially if they have a strong offer and a good rapport with the seller or the agent.


  1. For sellers, POA can deter some buyers who prefer to see the price upfront and may not bother to contact the agent or the seller.
  2. For sellers, POA can also make it harder to compare their property with similar properties on the market and to justify their price to buyers.
  3. For buyers, POA can be frustrating and time-consuming, as they have to contact the agent or the seller to get the price and other details about the property.
  4. For buyers, POA can also create uncertainty and confusion, as they may not know if the property is within their budget and if they are paying a fair price.

How to Deal with POA?

If you are a seller who wants to use POA, you should consult a local real estate expert who can advise you on the best strategy for your property and your market.

You should also be prepared to provide the price and other information to interested buyers who contact you.

If you are a buyer who encounters a POA listing, you should not be afraid to contact the agent or the seller and ask for the price and other details.

You should also do your own research and compare the property with similar properties on the market.

You should also have a clear budget and a pre-approval letter from your lender before making an offer.

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