Please explain Estate Agent speak - “Guide Price” on a house for sale?

Continental

We have been to view a house on the south coast - approx 100 years old - and we really liked it; 5 bed detached, on third of an acre and with gorgeous distant countryside and sea views (this is probably the biggest draw - but of course I’m aware that in the next few years the fields near the house which currently have horses on could be turned into a housing estate - the owners own the fields too but they’re retired and may decide to sell it off?).

It seems to have been well-maintained and the owners have already downsized and moved to a smaller property nearby. It has a dated kitchen from the 1970s and the owner immediately said that the estate agent told them not to install a new one themselves as a new owner would want to put ‘their own stamp’ on it. Tbh we would probably knock a wall down into the seperate dining room to open up the space a bit.

Also there is an outside swimming pool - this apparently costs around 6 pounds per day to heat plus around 200 pounds per year for chemicals. (I do know that some people would be put off by a pool; I can take it or leave it as it doesn’t take up the whole garden and I do enjoy swimming).

The house we like was on the market last year (the google map showed that it was up for sale with a different estate agent). The vendor showed us the house but said it was withdrawn from sale as they had ‘too much going on’ (I think illness with a family member). It has been listed with a different agency now for 3 months. The vendor said that the agent was ‘rubbish’ and gave us his own contact details.

I had a follow up call from the agent and I asked about the ‘guide price’. He said that the asking price (770k) took into account the need for a new kitchen. I don’t know what is meant by a ‘guide price’; unfortunately there aren’t really any recent comparables apart from a newer house about a mile away asking 800k with the same agency but I feel is probably overpriced. Most other houses in the local area (not same street) are in the 300s as they are smaller, less land, no views etc.

We are in a strong position as cash buyers (already sold a house with the proceeds in the bank) and it would be nice not to be in a chain.

I heard on the radio today that house prices are dropping. I spoke with a guy at Wickes that a decent quality kitchen would be 25k-30k but I have no idea what we should offer for the house without insulting the vendor. Should we get a full structural survey first before making an offer? We haven’t bought a house here in more than 30 years as gullible newlyweds and have moved back from living overseas, so we are out of the loop. Any suggestions welcomed

Comms69

Guide price means nothing. Just like anything else.


It's what the seller would like to get.


Offer, get survey, renegotiate if appropriate

pinkteapot

How I read these things:

'Guide price' - normally seen on unusual properties - agent doesn't really know and has had a guess.

'Offers in the region of' - seller wants asking price (or within a couple of thousand) - don't bother viewing if you think it's overpriced, even if it's been on the market a year.

'Offers over' - seller is an idiot, EA went along with it.

ThePants999

pinkteapot wrote: »

'Offers over' - seller is an idiot, EA went along with it.

Nonsense.

EA valuing our last house said "will definitely get at least £X, hoping for somewhere between that and £X+25K". Put it on for "offers over £X". Sold for £X+10K.

This was England, but the fact that basically the entire Scottish system is "offers over" should show you that it's a pretty sensible way to market...

G_M

however it is worded, the seller wants .... as much as they can get...

Carrot007

pinkteapot wrote: »

'Offers over' - seller is an idiot, EA went along with it.

Offers over means I will add £1 or £0.01 and expect them to come back and tell me the price.


Quite frankly a ridiculous proposal unless it is in the top 5% of property prices in the area.


Much like "WE ARE GOING TO A SEALED BID". Which means I am out, sell it to me or don't. You are just chasing money and will do later.

getmore4less

Widen your search area to get a better sample of comparable.

Look for what has sold between 600 and 800 and just put them in a pecking order to get a sense of value

In a low supply/demand situation it can be a waiting game on both sides waiting for a match.

getmore4less

Check the local plan for what the current strategy on building is.

PasturesNew

It indicates the lowest the buyer is currently willing to consider.

Below this amount they might drop, if there's no interest, but they're really hoping it'll be somebody's dream/forever home and there'll be a bidding war, preferably with two fiercely competitive Londoners fighting it out.

Take a guide of £500k.
That'd be nice, we'd take that if we had to.
We'd like it to find its market higher though ....

Depending on their desperation/need to move, they might not reduce it. On the other hand, if you wait longer, it MIGHT drop.

All you can do is work out how much it's worth to you .... but no lower than £500k right now. The closer to the initial starting date, the less chance they'd actually even take £500k as they'd be holding out for 1-2 months for somebody to offer more.

getmore4less

Probably this one.

https://www.rightmove.co.uk/property-for-sale/property-61748835.html

eddddy

Tell the EA that you're interested, but you're a bit uncertain what they mean by 'Guide Price'.

And ask the EA what offer the seller is likely to accept.

The EA will probably add some 'spin' to their answers, but they want the property sold - so they will probably be helpful.

(It's not in their interests to suggest a high offer amount, which results in you walking away.)