'Guide Price' advice please...

RedfordML

Looking through property listings and plenty of houses are listed as 'guide price' £150k - £165k (example)

Does this mean its not worth a view if my budget was under £150k? Would an estate be difficult to negotiate or accept an offer below the guide?

If you are selling with a guide, what are your expectations? (Offers need to be within the guide etc??)

Mobeer

All prices are "guide prices" until contracts are exchanged.

thelem

It will vary depending on the vendor - I've heard people say that the higher prices is what the vendor thinks it should be on for, but the lower is what the estate agent thinks it should be on for.

You might get an offer below the lower price accepted, but it'll be harder than if they had just marketed it at the lower price.

nikanika0

Our neighbour's house has been sold for £165k, it was advertised as guide price £160k- 180k.

ging84

the sellers have given a clear intent to not sell for lower than a certain figure
if you clearly would/could not offer that figure before you've even seen the property then there is very little chance of you doing a deal.
Unless you think it's still maybe a little overvalued, you can't afford it. If you are not struggling to find suitable properties in your budget avoid the disappointment and keep looking at ones you can afford

Duskylady

If you think you might like the house I'd go see it and offer if you like. You never know what the vendors are thinking so you might as well try. The worst someone can say is no.

I_have_spoken

IMHO, an initial offer 10% under guide is perfectly OK.

There's obviously the 'dead zones' just above tax thresholds were sellers (unless idiots) expect offers just under the tax limit.

In the current market 'fixed price', 'offers over' etc. mean nothing

Smith_007

ging84 wrote: »

the sellers have given a clear intent to not sell for lower than a certain figure

But the market may dictate otherwise

ging84 wrote: »

if you clearly would/could not offer that figure before you've even seen the property then there is very little chance of you doing a deal.

RUBBISH !

No matter how an EA words their pricing, the answer is always the same: If your first offer doesn’t insult the vendor, it was too high . It isn't a sellers market anymore (some regions excepted).


As for a guide price of £150k - £165k ?
Depending on the property / area etc......
I'd maybe go in at £137k with a view to spending £150k as an absolute maximum. In giving a guide price, the vendors have already revealed the minimum price they will comfortably accept. You would be a fool to offer more than this.

kwmlondon

Smith_007 wrote: »

But the market may dictate otherwise
No matter how an EA words their pricing, the answer is always the same: If your first offer doesn’t insult the vendor, it was too high . It isn't a sellers market anymore (some regions excepted).


As for a guide price of £150k - £165k ?
Depending on the property / area etc......
I'd maybe go in at £137k with a view to spending £150k as an absolute maximum. In giving a guide price, the vendors have already revealed the minimum price they will comfortably accept. You would be a fool to offer more than this.

Not bad advice, but in some parts of the country you will find that offering the asking price will not secure you the property - you will find yourself in a bidding war very quickly.

My sister is in Maidenhead and they've been to see a couple of places, speculatively. By the time they'd phoned up the estate agent to discuss the property they were told that the property had sold for more than the asking price and would they like to put a higher offer in.

Yes - it's a bubble, but do your homework and know the market. You can see what places have been going for with online tools - mouseprice is pretty good.

DRP

kwmlondon wrote: »

Not bad advice, but in some parts of the country you will find that offering the asking price will not secure you the property - you will find yourself in a bidding war very quickly.

My sister is in Maidenhead and they've been to see a couple of places, speculatively. By the time they'd phoned up the estate agent to discuss the property they were told that the property had sold for more than the asking price and would they like to put a higher offer in.

Yes - it's a bubble, but do your homework and know the market. You can see what places have been going for with online tools - mouseprice is pretty good.

^^yeah this.

It is almost entirely dependent on the local market.

I doubt after e.g. a week on the market a vendor will be willing to go low, but one whose house has been hanging around for a while will be likely to be more flexible. Use property bee (mozilla) or Property Tracker (Chrome) to evaluate dates, any previous price changes etc

You just have to view , sound out the EA, do the research and then make an appropriate offer.

ndf9876

I personally found a lot of guff in some property listings : OIEO, Fixed Price, OIRO. To me, it was meaningless. Friend of mine bought his property recently, advertised as "Fixed Price" for £15k less than aforementioned "Fixed Price". My offer was accepted on a property with a "Guide Price" of £265-£285k and I can tell you my offer was much lower.

The bottom line is, if it's within your ballpark budget range, I'd go and have a look if it were me.

Having said that, we looked at a property with an asking price of £265k and the vendor wanted the asking price or nothing, no movement. We shrugged and walked away - the property is still on the market. As with anything, your experiences may vary, but I'd say there's no harm in at least having a look.