Auction - questioning guide price

eddddy

supa34 wrote: »

Most of the times the guide price in auction is lower than market value. This is to get people interested into the room and make a bid thinkng they will get it at guide price.

The guide price will be an indication of the reserve price. (And the reserve price could be higher or lower than a realistic market valuation.)

As mentioned above, the ASA ruled that an advertised guide price must be within 10% of the reserve price.

In reality, that means the guide price will typically be 10% below the reserve price...

A ruling in 2014 by the ASA stated that where the guide price is a range of figures (for example £100,000 to £110,000) then the reserve must sit within that range, and where the guide is a single figure (for example £100,000 or £100,000+) then the reserve must be within 10% of that figure.

Link: https://www.eigpropertyauctions.co.uk/buying-at-auction/guide-prices-explained