‘No-price’ strategies include ‘for sale by negotiation’, ‘for sale by tender’ and ‘auction’. Most real estate advertising websites also offer a ‘contact agent’ option.
The effect of no price marketing on buyer enquiry is heavily influenced by market conditions.
In a stable or falling market where supply outstrips demand, enquiry is generally lower with no price marketing. If a potential buyer enquires, inspects the property and decides to make an offer, it is seldom at or above market value. The lack of advertised price legitimises any low offer made.
However, in rising market conditions the effect on enquiry is minimal. Conditions that force buyers to compete for property, such as the booming market seen in Sydney and Melbourne in recent years, oblige buyers to move quickly and enquire on any suitable property regardless of advertising method.
While agents often claim credit, it is the increased demand in the market that is driving the enquiry levels, rather than the lack of an advertised price.
Prior to advertising a listed price, some agents are successfully using a brief exploration period with no price. With a trusted agent, and under the right market conditions, this can work well and has parallels to the heart buyer search.
However, most no-price strategies are built on the premise of using the two lies to inflate the estimated selling price at the listing, then educating the seller down on price. All no price strategies are particularly susceptible to the online marketing and pricing deception.