Is a 'Guide Price' negotiable?

lea_t88

Hi, do any more experienced house buyers/sellers out there know if a flat is likely to sell for the 'guide price' it is up for?

There are a few places I have seen and really like one, but it is at the top end of my budget as a 'guide price'. Is there a general rule regarding guide prices and if this might be a reserve?

Thanks in advance

lawriejones1

It depends on where it is, your position, the position of the seller and lots of other variables. If it's a new-build I'd offer 10% or maybe 15% beneath the asking price.

A good idea might be to discuss with the agent and push him or her, alternatively you can search for properties that have previously sold in the area and perhaps even the development by using searches like Zoopla to see what's out there.

You're the one spending the money, try and save as much as you can!!!

lee111s

A guide is all it is, doesn't mean it's right.

Offer what you think the property is worth.

kingstreet

Is this property going to auction?

That's usually where the words "guide price" are normally used. Then, they can be the price which the auctioneer thinks the property will raise, or they can sometimes be the opening bid the auctioneer uses, with the guide used to get more people through the door in the hope of a bargain which never materialises.

lea_t88

No, not a property which is going to auction, which is what has slightly threw me. I have done some research and the same flat sold in 2008 for 50% more than what it's up for now.

G_M

No. If the seller has stated a 'guide price' this is non-negotiable. That is the guide the seller wishes to provide and he is unlikely to alter the guide price he markets at.

As to whether he will sell for less, or more, depends on

* if the guide price was realistic
* whether he has a mortgage which dictates a minimum price he can accept
* how keen he is to sell
* how much interest there is from buyers
* etc

Davesnave

I've seen quite a lot of 'guide price,' which I interpret as OIRO, but I could be wrong.

If a flat has lost that % since 2008 you ought to be looking for the possible reasons why. One bed pads took a real knock, as did apartments in city blocks where the developer eventually sold off remainders for social housing.

dtsazza

All prices are negotiable, at the end of the day. Of you like the place buy don't believe that it's worth the number on the adverts, make your offer to the vendor: "we're prepared to buy this place for £X". They can say yes or no, regardless of what they put as their guide price.

Also there's no single answer about whether a flat is likely to achieve its guide price. If the guide price is below the market value, then it will do; if it's over-optimistic, then it won't. The answer will be different for each and every property, as it depends on how realistic the guide price is.

thelem

Davesnave wrote: »

If a flat has lost that % since 2008 you ought to be looking for the possible reasons why.

It likely hasn't - it's probably just a tactic to get lots of people into the auction room bidding against each other well above the guide price.

Davesnave

thelem wrote: »

It likely hasn't - it's probably just a tactic to get lots of people into the auction room bidding against each other well above the guide price.

Read post 5.