Quick Answer: What Does Price Guide Mean At Auction?

What does an 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 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.

What does a guide price 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.

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.

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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.

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!

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.

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.

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.

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How much should I offer on a guide price?

As a guideline, some say it’s best to open with an offer that’s around 10 per cent lower than the asking price. That should be enough to signal genuine interest, while leaving you some wiggle room to keep your final bid as low as possible.

What offers over means?

When a house is listed with an offers over price or on Rightmove who use “Offers in excess of” or “OIEO“, means the seller is hoping to sell their house for more than the listed price. It’s a tactic often used to generate more interest in a property as the offers over figure is usually below its real value.

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.

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.

Why do some properties have a guide price?

Guide prices explained Some estate agents see guide prices as a way to encourage potential purchasers to come and view the property. This might happen if a property is particularly attractive or has real selling potential so the owner can see what offers come in to their agents over a few weeks.

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