Guide Price?

DonRoddy

I've been seeing a lot of properties popping up with a "Guide Price" usually a single figure or a range.
What is the normal expected offer these type of properties, is it different to an "asking price"? I recently liked a property with a guide price of £280,000 but it sold for in excess of £295,000....
For example for a property with a guide price of £275,000 - £300,000, would an offer of £275,000 (or below) be completely ignored, or are they expecting for something in excess of this range? 
I know it depends on the property and how much the buyer likes it - but I'm just looking for a general idea...

GraceD_17

I assume most people's 'guide price' is to inform potential buyers that that's the amount of money they're expecting, with houses like that going in with an offer lower than the 'guide price' is likely to be beaten. 

greatcrested

No offer you make will be ignored unless or until a higher offer is received.

Offer what you are prepared to pay (or slightly les).

AskAsk

guide price means around that figure.  if it goes higher it is because people bid it up.  you can offer below and they may accept it if no one else is interested, or everyone is offering below and not competing.

Scotbot

Are you in Scotland or England/Wales?

DonRoddy

AskAsk said:

guide price means around that figure.  if it goes higher it is because people bid it up.  you can offer below and they may accept it if no one else is interested, or everyone is offering below and not competing.

That does make sense - the ones that offer range, I can't see anyone offering on the higher end? e.g. I'm assuming a property listed as £275,000 - £300,000, nobody will go in with an offer of £300,000 so the property will sell for somewhere in between? If that's the case why not list it as an asking price of £300,000. Maybe I'm a bit confused

Scotbot said:

Are you in Scotland or England/Wales?

I'm in England

Scotbot

If there is a heap of interest and properties are selling quickly  then it will go for the higher end but I agree with you in England just state an asking price.  If multiple bids come in you can always go to best and final.

AskAsk

DonRoddy said:

AskAsk said:

guide price means around that figure.  if it goes higher it is because people bid it up.  you can offer below and they may accept it if no one else is interested, or everyone is offering below and not competing.

That does make sense - the ones that offer range, I can't see anyone offering on the higher end? e.g. I'm assuming a property listed as £275,000 - £300,000, nobody will go in with an offer of £300,000 so the property will sell for somewhere in between? If that's the case why not list it as an asking price of £300,000. Maybe I'm a bit confused

Scotbot said:

Are you in Scotland or England/Wales?

I'm in England

if the property is on between £275k to £300k then it means the EA is thinking it is somewhere in that band depending on who comes to view.  by putting in the lower figure, it catches people searcing on rightmove at the £275k mark as the search criteria ask for maximum price.

if there are lots of interest then it could go to £300k or even higher.  some EA play the game to get lots of people interested, then it starts a bidding war.  when you see other people wanting something, you tend to get carried away and think it must be good.

someone said that their dad taught them when they were a kid, that if there is a long queue outside a shop, there must be something good inside, so they should join the queue not to miss out, lol 

GraceD_17

I agree with the above comment about having a range means it's more likely to pop up on people's rightmove when they put their criteria at £275k even if it is way out of there budget, it could catch their eye and make them up their budget. I found this alot, when I capped my budget at say £170k i'd miss out on houses that were £175k because of the criteria, whereas if there is a range it's more likely to jump out to buyers on a slightly lower budget. 

I say go in there with the inbetween, £280/285k and see what happens, like you say others could be thinking the same and go lower hoping that everyone else does, so if you get there slightly higher you have a good chance. 

In regards to why anyone would offer above £300k when it's the price range, the answer would simply be to make sure they secure that house, if you're desperate for a property and have the money, you'd bid on the highest side to give yourself a decent chance of outbidding others. 

AskAsk

GraceD_17 said:

I agree with the above comment about having a range means it's more likely to pop up on people's rightmove when they put their criteria at £275k even if it is way out of there budget, it could catch their eye and make them up their budget. I found this alot, when I capped my budget at say £170k i'd miss out on houses that were £175k because of the criteria, whereas if there is a range it's more likely to jump out to buyers on a slightly lower budget. 

I say go in there with the inbetween, £280/285k and see what happens, like you say others could be thinking the same and go lower hoping that everyone else does, so if you get there slightly higher you have a good chance. 

In regards to why anyone would offer above £300k when it's the price range, the answer would simply be to make sure they secure that house, if you're desperate for a property and have the money, you'd bid on the highest side to give yourself a decent chance of outbidding others. 

people don't tend to offer more than the top end, and most people would go middle.  the agents drive it up above the top end when there are lots of interest as people start to compete.

happysellerbuyer

Max I would offer is 275k