I think anyone who wanted to buy a house asked this question: what does guide price mean? A guide price is far more likely to be subject to negotiation and for some estate agents, it can be a way to encourage more people to come and view the house for themselves.
In property selling terms, the guide price is a value that gives buyers a general idea of how much the seller wants. The final selling price could end up being higher or lower than the guide price. In simple terms, it is just a rough idea of what the selling price will be.
The phrase ‘guide price’ when marketing your property on portals can leave it open to interpretation. In fact, the prefix price like “guide price” or “price from” is just a sales technique and is meant to attract the buyer’s interest.
Definition of “guide price” from the Cambridge Advanced Learner’s Dictionary: “the price that something is expected to be sold for, especially in an auction”
What’s the difference between guide price and asking price?
The Guide Price
- Often subject of negotiation
- Subjective
The Asking Price
- Not always subject of negotiation
- Determined by supply and demand
- Depend on more factors (location, age, etc.)
What’s the purpose of the guide price?
A price label like ‘Guide Price’ exists because every property has its own situation, variables and it’s not always simple enough for a value to decided by one price tag. The property in question might be worth much more than what someone’s knowledge can be at the time and may require some explanation.
A property vendor should instruct an estate agent to undertake various strategies to present the property in its best light. It might be best to call and ask the agent directly about the price label they use since property advertisements aren’t contractual obligations. In reality, there isn’t much difference between all the difference price tags.
Thinking of selling or renting using a price prefix like “guide price”? Contact Love Your Postcode and let us know. One of the most agonizing decisions when selling your home is what price to put it on for, but thanks to our country-wide local property experts, we make it easy.
What is the guide price in auction
Each auction property is offered at a guide price. The property is also subject to a reserve price. The guide price is the level where the bidding will commence when the auction starts. The reserve price is the seller’s minimum acceptable price at auction and the figure below which the auctioneer cannot sell.
The reserve price, which may be higher than the guide price, is not disclosed and remains confidential between the seller and the auctioneer. Both the guide price and the reserve price can be subject to change up to and including the day of the auction.
Our aim is to achieve the highest selling price within 21 days, leaving home sellers with more. Our results speak for themselves with a 99% selling price average since 2014.
Book an appointment with one of our property experts. Call us on 0800 862 0870 or book a free valuation on your home today.
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