What does ‘Guide Price’ mean?

A guide price is the indicative amount a property is expected to sell for on the open market. It reflects the seller’s and estate agent’s assessment of market value but is not a fixed asking price. Guide prices are commonly used for property auctions, high-value homes, or when the agent’s valuation differs from the seller’s expectations.

Guide Prices explained

A guide price helps attract potential buyers by showing what the seller hopes to achieve. It provides a benchmark for negotiation - set too high and buyers lose interest; set too low and the property could sell for less than its true market value. Experienced estate agents determine guide prices based on market data, comparable sales, and demand trends.

Register today! Be amongst the first to see new and off-market homes for sale in your area.

When are Guide Prices used?

Guide prices are most often used in:

• Property auctions, where bidding starts around the guide price and usually rises through competition.
• Sales of premium homes, where pricing flexibility is needed.
• Listings with price uncertainty, when market value is still being tested.

Auction catalogues and sales packs display the guide price so buyers can gauge the expected sale range.

How accurate are Guide Prices?

Guide prices are estimates, not guarantees. They are informed by the estate agent’s understanding of the local housing market and recent sales of similar properties.

• The guide price is a marketing figure aimed at encouraging offers.
• The asking price is the lowest amount a seller is prepared to accept and is usually disclosed privately to the agent.
  Typically, the guide price may be slightly higher than the asking price to generate competitive bidding.

Guide Prices and Mortgage Valuations

A mortgage valuation is a lender’s assessment of a property’s worth, carried out by a qualified surveyor. When setting a guide price, staying close to this valuation can help ensure a smoother negotiation and prevent complications with mortgage approvals or undervaluation issues.

Can you offer below the Guide Price?

Yes. Buyers can offer below the guide price - usually 5–10% lower - especially if there is limited interest or competing bids. Sellers often expect this and may accept or counter depending on market conditions and the level of demand.

What is the difference between ‘Guide Price’ and ‘Offers in Excess Of’?

• Guide price: A suggested selling range, open to offers above or below.
• Offers in excess of (OIEO): Indicates that the seller only intends to accept offers above the stated figure.
• Offers in the region of (OIRO): Suggests flexibility within a small range, typically around 5%.

Guide Price vs Reserve Price at auctions

At auctions, the reserve price is the minimum figure the seller will accept.

• If bidding does not meet the reserve, the property cannot be sold.
• The reserve price is usually below the guide price, giving room for competitive bidding to push the sale higher.

Auctioneers publish the guide price to attract interest, but the reserve price remains confidential between seller and auctioneer

Contact your local haart branch for help with your next move

If you’re thinking of buying your next property, whether by auction or traditional means, haart will help get you moving.