Understanding Guide Prices at Property Auctions
A guide price is an indication of the price a seller is hoping to achieve for a property at auction. It is designed to give potential buyers an idea of the property's value and to encourage interest ahead of the auction.
However, the guide price is not the amount the property will necessarily sell for. Properties can sell for more or less than their guide price, depending on bidding activity and market conditions.
For example:
- A property may have a guide price of £100,000.
- If several buyers are interested, competitive bidding could push the final sale price to £125,000, £150,000, or even higher.
- Equally, if there is limited interest, the property may not reach the seller's reserve price and could remain unsold.
It is important not to assume that a property will sell for its guide price. Before bidding, you should research similar local properties, review the legal pack, inspect the property where possible, and decide on your maximum bid in advance.
Think of the guide price as a starting point for buyer interest rather than a guaranteed sale price.
Top Tip: Some buyers focus solely on the guide price and are surprised when bidding exceeds it. Always set your own budget based on what the property is worth to you, not simply on the guide price shown in the catalogue.
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