In a market where only a few thousand dollars could mean the difference between ‘affordable’ and out of their price range, the advertised price on your property for sale must adhere to the law.
In recent years, we’ve noticed more properties hitting the market with a range of pricing strategies designed to create a sense of urgency and competition among prospective buyers.
The ‘Offers Over’ strategy is used to set a minimum price, to attract buyers willing to make competitive offers. However, if not clearly understood, this strategy can leave the agent and the seller potentially committing an offence.
“If you use an ‘offers over’ price tag, it should carry the minimum amount the vendor is willing to accept to sell the property.”
Expressing a sale price as ‘offers over’ may be considered bait advertising if you aren’t willing to accept a price in the lower range of the advertised price.
If an offer is presented and it is over the indicated price but is refused, this is where the problem can arise. It leaves the potential buyers confused and annoyed because by now, they might have been emotionally invested in a property that was always out of their budget.
If your property is listed with the ‘Offers Over’ strategy, it is with the understanding that this is your lowest offer point you’d be willing to accept. This means that ANY offer presented to you, over this amount, whether it be as little as a $1 over, you have an obligation to consider it; otherwise, it could fall under bait advertising.
Bait advertising is an offence and can come with severe penalties as part of the Australian Consumer Law. A maximum penalty for an individual of up to $2.5 million per breach and for a corporation, up to $50 million per breach.
Speak with your agent and ensure you understand what you’re agreeing to regarding your advertised price. For further information on this topic, take a look at the best practice article on the Qld Government website – Property advertising | Your rights, crime and the law | Queensland Government (www.qld.gov.au)
Popular strategic alternative pricing options can be found as:
If you decide to change your instructions with respect to the listing price or what you’re willing to accept, then the advertised price should be changed, and the instructions need to be provided in writing to your agent.
Discuss with your agent the best advertising strategy for your property. Be strategic, be accurate, but most importantly, be lawful.
If you anticipate receiving multiple offers, it’s important to understand how this process is managed. For more information, refer to our related article: Multiple Offers – Ray White Gladstone.
For a knowledgeable and tailored experience, choose Ray White GLADSTONE for your buying or selling journey.
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