FAQ: What Is A Guide Price At Auction?

Can you offer less than guide price?

It is certainly possible to offer lower than the guide price. For example, if similar properties in the area take too long to be purchased, or if they are selling below the guide price, the buyer will automatically deduce that the offer can sensibly be lower than the price the vendor is selling it for.

What does auction price guide mean?

A price guide is exactly what it says it is, an estimation of price, based on recent sales of comparable properties. A practise known as ‘underquoting’ has been known to occur within the industry where real estate agents deliberately quote lower than the estimated property price in a bid to gain more interest.

What does a guide price actually mean?

What does a guide price mean? A guide price is usually the minimum amount a seller wants for their house. It’s how much the owner thinks their property is worth.

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Do auctions start at the guide price?

Each auction property is offered at a guide price and is also subject to a reserve price. The guide price is the level where the bidding will commence. Both the guide price and the reserve price can be subject to change up to and including the day of auction.

Can you offer 10 below asking price?

However, if you find out from the estate agent the sellers motivation is finding the highest offer, you may have to submit a less cheeky offer, only 5-10% below asking price, which the estate agent should advise the seller to consider, as this is actually the true value of the house.

Should you offer under asking price?

When should my offer be below the asking price? You may be able to buy the property for less than the asking price for a number of reasons. If you feel as though the property is worth less than what the seller is asking, go in lower, but be fair. Offering half isn’t likely to go down well!

Do bidders see the reserve price?

A reserve price is the lowest price you’re willing to sell an item for. Bidders can’t see the reserve price, but they’ll see whether it has been met.

Is having an auction worth it?

If you don’t have enough merchandise to meet the auction house minimum, you’re better off selling the more valuable items individually on eBay or Facebook Marketplace instead of lumping them into an estate sale. It may be worth a lot to you, but its market value is minimal, and it’s not going to lift itself.

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Does guide price always mean auction?

A guide price is a marketing figure, which is used to guide potential buyers as to how much a property could be worth. They are not necessarily figures which a property will sell for, the sale price will be dependent on bidding in the auction room. Guide prices can either be a single figure price or a price range.

How much should you offer on a house?

Figure out how much you can afford Some financial experts use a rule of thumb that says your home should cost no more than two or three times your annual household income. So if you and a partner earn a combined $150,000 a year, then you should look at homes listed at $300,000 to $450,000.

What’s the meaning of asking price?

The asking price is the amount a home seller wants a buyer to pay to purchase his home. The asking price is generally part of the property listing and is not the final price paid by the borrower.

How does making an offer on a house work?

Once the seller reviews your offer, they may accept, counter or decline it. If it’s accepted, you’ll apply for a mortgage and begin the closing process. If the seller makes a counteroffer, you can either accept it and begin the closing process or make your own counteroffer (in the form of a new offer letter).

Is it better to auction or sell a house?

An auction gives property owners the best chance to sell their real estate quickly. That’s far more efficient than selling real estate by listing it with a real estate agent and waiting patiently for the best offers to come in.

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Can you back out of an auction bid?

In many cases — yes. Buyers who have placed a bid can retract their bid any time before the auctioneer announces the sale has been completed. If the buyer does not complete the transaction, they may be liable for any damages to the seller if the item is resold for a lower value.

Do I need a solicitor when buying at auction?

Buyers will usually consult a solicitor or conveyancer before the auction to advise on the content of the legal pack. If you are the successful purchaser, you will need to have your appointed solicitor’s details available for completion of the memorandum of sale.

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