What is the difference between guide price and just a price?!

Loopy28

Sorry if I sound dim. Some houses are offered for sale with just a price, others have a guide price. So for example one house might say price: 175k, another might say guide price: 175k.

Having searched online it would appear there are two schools of thought. One being that the guide price is an indication of what the buyer wants to achieve and they are unlikely to be haggled down much. Another view is that the guide price is a more an indication that the owner is prepared to negotiate on price.

I would be interested to hear others thoughts/experience. Thanks :-)

Paully232000

Personally, I would ignore what it says in terms of ono, offers over, guide price etc except for the price.

We looked at all, within reason of our budget and just offered what we thought it was worth/what we were prepared to pay minus a bit for negotiation room.

If they were not prepared to take what was out max offer then we moved on and eventually found a house we liked, in our budget.

somethingcorporate

The word "guide".

Materially there is no difference.

benjus

A price on its own is usually taken as a target which the vendors would like but don't really expect to achieve (except in overheated markets like London earlier this year). A "guide price" suggests that they are expecting to get at least that much for it.

However, it's all just marketing techniques to try to get the highest possible sale price... just offer what you think the place is worth if you like it.

Assuming you're not talking about Scotland, where I think things are a bit different.

Loopy28

Thanks for your comments, really interesting to hear your thoughts.

I have a property I would like to view, it came on the market 8 weeks ago at guide price of 175k, it was recently reduced to guide price 170k. There is no onward chain so perhaps they are eager to sell it especially as the reduced it quickly, although this could have been due to lack of interest. The EA told me it went sale agreed but within a day the buyer pulled out as they saw something else they liked better so on the other side, if they had a good offer from them it might mean they will hold out again. If only the EA could tell me the sale agreed price with them!

My max budget is 165k, not sure if viewing it could end up breaking my heart if I like it or if it is worth the risk...

davisc02

I always think of a guide price as around that figure and therefore will take an offer. Go and see it, if you like it make an offer for £160000, they might say no and 165 is the minimum

G_M

Ignore.

Decide what you can afford. What you think the property is worth compared to other properties. And decide how much you want the property (which may make you prepared to offer a bit extra).

Then make your offer.

If it is not accepted, then clearly the seller is looking for more than you are willing/able to pay.