Often asked: What Does Auction Price Guide Mean?

What is an auction guide price?

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.

What does price Guide mean?

A price guide is exactly what it says it is, an estimation of price, based on recent sales of comparable properties. Sometimes it’s a set figure or a guide which gives a price range of about 10% (for example $600,000-$650,000). More buyers means more competition, and in theory a higher end price.

What does an auction guide mean?

Fundamentally, the agent price guide is a tool to get a reaction from buyers. Agents have a saying – “Quote it low, watch it go. If you quote it low, buyers will think they’ve got a chance. They’ll take contracts, go and do the building pest inspections and all their other due diligence.

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Can you offer less than the 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 is above auction price guide?

This is a figure at which the property can be sold and will be set within 10% of the guide price. This figure can be subject to change, but will never be more than 10% above or below the guide price.

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.

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.

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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Do agents have to give a price guide?

In NSW, an agent has the option not to provide a price guide at all, while in Victoria, agents will be required to provide an indicative selling price.

What do you do on auction day?

Pre-Auction Tips: 9 Things To Do BEFORE Auction Day

  • Check Your Financial Capacity.
  • Vet the Sale Contract.
  • Make Sure You Have a Professional Building Report.
  • Check More Than Just The House Condition.
  • Register to Bid with Proper ID.
  • Visit Auctions.
  • Have a Bidding Limit and Stick To It!

Is domain estimator accurate?

Domain is the most accurate by far according to our research. Will be interesting to see what the agent says in a couple of weeks time. All values stated with high confidence. I’d say they are reasonably accurate given all three were within $10k either way of the actual purchase price.

How accurate are property auction guide prices?

Guide price We would normally expect the reserve price to be within a range of approx. + or – 10% of the guide price. Both the guide price and the reserve price can be subject to change up to and including the day of the auction.

How much should you offer over asking price?

While it is not uncommon to pay one to three percent over list price, Williamson suggests talking to your realtor and lender to come up with a number that is best for you, so you’re not putting in an offer that’s beyond your means.

Can you offer 20k less on a house?

You can offer 20k less on a house. But whether the seller accepts your cheeky offer is partly down to how big a percentage the 20k represents in relation to the asking price.

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Can estate agents lie about offers?

Although they shouldn’t, estate agents can and do lie about offers to make it look to you as a seller that they’re creating lots of interest in your property. An estate agent may also lie about offers so they can push you in the direction of a specific REAL offer, so they can get their hands on their commission ASAP.

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