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  • FIRST POST
    • vet8
    • By vet8 2nd Apr 10, 5:04 PM
    • 794Posts
    • 400Thanks
    vet8
    What does Guide Price mean?
    • #1
    • 2nd Apr 10, 5:04 PM
    What does Guide Price mean? 2nd Apr 10 at 5:04 PM
    Excuse me if this has been asked before, but our EA has put our house on the market with a "guide price". Since every buyer always offers under the asking price, how does this differ from a normal price?

    Should I expect offers a lot lower or higher or will it not make any difference?

    Thanks
Page 1
    • Cannon Fodder
    • By Cannon Fodder 2nd Apr 10, 5:13 PM
    • 3,849 Posts
    • 6,208 Thanks
    Cannon Fodder
    • #2
    • 2nd Apr 10, 5:13 PM
    • #2
    • 2nd Apr 10, 5:13 PM
    I think its EA mumbo jumbo, and don't pay it any attention.

    Might be an idea to ask your EA. They presumably know what they are doing, and have a strategy in mind...or maybe not.
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  • DVardysShadow
    • #3
    • 2nd Apr 10, 6:33 PM
    • #3
    • 2nd Apr 10, 6:33 PM
    Excuse me if this has been asked before, but our EA has put our house on the market with a "guide price". Since every buyer always offers under the asking price, how does this differ from a normal price?

    Should I expect offers a lot lower or higher or will it not make any difference?

    Thanks
    Originally posted by vet8
    Did they tell you what it means? Did they tell you this was what they were going to do? Basically, you should have understood this and agreed to it before it was ever put on the market so described.
  • Eric1
    • #4
    • 2nd Apr 10, 6:38 PM
    • #4
    • 2nd Apr 10, 6:38 PM
    I think its EA mumbo jumbo, and don't pay it any attention.
    Originally posted by Cannon Fodder
    EAs must be thinking they are giving some hidden psychological messages to attract buyers like myself.
    But the problem is I don't care
    • vet8
    • By vet8 3rd Apr 10, 1:14 PM
    • 794 Posts
    • 400 Thanks
    vet8
    • #5
    • 3rd Apr 10, 1:14 PM
    • #5
    • 3rd Apr 10, 1:14 PM
    The "guide price" was a higher price than the figure I had in mind. Mine was clearly only a guess, but a pretty educated one bearing in mind the value of other houses sold in the area. The EA was insistent it was a guide price and someone told me I should expect higher offers, someon else said lower. It seems to mean nothing special, but I just wondered if anyone knew the definitive answer.
  • DVardysShadow
    • #6
    • 3rd Apr 10, 9:42 PM
    • #6
    • 3rd Apr 10, 9:42 PM
    The problem is that because there is no generally understood meaning to the term guide price, you are effectively filing to communicate your expectations clearly to the market. Personally, as buyer I would tend avoid EA's who use guide price for just that reason. That is just me. And as seller, I would not agree to be marketed in that way.
  • ciano125
    • #7
    • 3rd Apr 10, 9:53 PM
    • #7
    • 3rd Apr 10, 9:53 PM
    Put yourself in a potential buyers shoes. If you saw a house with a guide price of say £130k to £140k, would you be likely to offer £150k? Of course not, they've already indicated they will take £130k. I imagine that some EA's will hope that by doing this some people will be put off offering lower than £130k, but most buyers these days I imagine will see straight past that and go in lower anyway.
    • vet8
    • By vet8 4th Apr 10, 5:53 PM
    • 794 Posts
    • 400 Thanks
    vet8
    • #8
    • 4th Apr 10, 5:53 PM
    • #8
    • 4th Apr 10, 5:53 PM
    That's my view.

    We have had one offer, which is slightly below the figure I thought the house was worth, I am happy with that, but I cannot see what the EA hoped to gain by their Guide price which was slightly higher. It seems to work out the same anyway.

    Having said that I must say, much to my amazement, that I am very impressed with the EA. They are a fairly new, very local, independent firm who seem to really work like Trogans to sell the house. They are much better than any firm I have used in the past. Yes, they are still greasy salesmen, but I am impressed by them. They started up in the worst of the recession and seemed to have survived well, even though 4 other local EAs have folded.
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