Guide Price

cattie

It often seems to me that at least 10k more than the 'guide price' is the starting figure for properties sold like this.

I've never understood why properties can't just be marketed at the figure that an ea thinks will achieve a sale, with a little bit of room for negotiation.

cloo

I made the mistake of putting my place on at a guide price two months ago and the upshot was that it just lowered the buyers' expectation of what they could offer and heightened mine of what I would get. I got two offers, one at the bottom of the range and one 15k below that, but didn't take the higher (mostly as I knew my husband wouldn't like it!).

My house goes back on, after a rest, this Saturday, at a flat price and so we'll find out if I've just wasted 2 months and lost money or if we were right to hold out. That our new agents sold the (basically very similar) house almost opposite for 40k more than the highest offer I got does suggest I've done the right thing, but let's see!

StuC75

But that's the point of Sales Negotiations - its a guide to bring both parties to the table to agree upon an end selling price..

Guide prices are often quoted in auctions as a way of drumming up multiple interested parties who would then bid up to an end price - much like a reserve in an eBay auction.. Only in this case there's no compulsion to the seller to accept your offer..

It also serves to get the interest of those people who it may be at the top end of there buying range to think - maybe I could stretch to...

Jitterbug123 wrote: »

Well, I am obviously OK with losing the property or I would have gone up.

But I don't think it's a particularly fair way to advertise if your asking price is actually higher than stated.

ognum

I am currently selling a property with a guide price, it currently has four offers from 20k below guide to 25k above.

It's worth what someone will pay, best and final by Monday!

TheCyclingProgrammer

ognum wrote: »

It's worth what someone will pay, best and final by Monday!

Well, almost. If best offer is backed by a mortgage, its worth what the lender's valuation says.

ognum

TheCyclingProgrammer wrote: »

Well, almost. If best offer is backed by a mortgage, its worth what the lender's valuation says.

best and final does not mean you take the most money, I will take the best offer and that will probably be non mortgaged.

But you are right and that's a good reason not to take a mortgaged buyer but sadly that pushes out the first time buyers that are bidding with a 20% deposit, but we will see what happens.

makeyourdaddyproud

:cool:

Jitterbug123 wrote: »

Also just looked and they paid £132k for it in 2005. Meh to them.

What has the price 9 years ago got to do with now?

DRP

best and final seems totally pointless. vendor should just use the upper limit, if that's actually what they're interested in selling for. As cloo posted, a guide price range just distorts everyone's expectations...

having said that, OP is obviously interested enough to make an offer - first offers are almost always 'expected' to be rejected, so is obvious the the ea/vendor would always be pushing for more... probably should have gone in with a lower offer and worked up to your target with subsequent offers...

ognum

DRP wrote: »

best and final seems totally pointless. vendor should just use the upper limit, if that's actually what they're interested in selling for. As cloo posted, a guide price range just distorts everyone's expectations...

having said that, OP is obviously interested enough to make an offer - first offers are almost always 'expected' to be rejected, so is obvious the the ea/vendor would always be pushing for more... probably should have gone in with a lower offer and worked up to your target with subsequent offers...

What happens if more than one person offers the top price? As a vendor is it not right to get the best price available to you?

w00519772

it depends how long the property was on the market. A few weeks then they will probably want top end. Six months then the may consider closer to bottom end.

a house is worth what someone will pay. If simular local properties have sold recently at your offer price then leave it on the table. Else increase your offer.