What Guide Price Means
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Guide Price is a commonly used term that refers to the approximate price range that a property is expected to sell for. It is the price that the seller and their estate agent expect the property to fetch in the market, and it is used as a guide for potential buyers interested in making an offer.
A Guide Price is essentially an estimation of what a property is worth, based on a range of factors such as its location, size, condition, and local market trends. It is provided by the seller's estate agent and is intended to give potential buyers an idea of how much they might need to offer to secure the property. For sellers, a Guide Price is typically seen as the minimum or approximate amount they’d like to sell their property for; however, it is not a fixed cost, and it is not necessarily the same as the asking price. Rather, it is a flexible range that can be adjusted up or down depending on market conditions and other factors. For this reason, you should view the Guide Price as a starting point for negotiations, not as a definitive price tag.
Determining the Guide Price of a property is a complex process that involves a variety of factors. Estate agents typically base the Guide Price on a range of factors, such as:
All of these factors are taken into account when determining the Guide Price, alongside the seller’s expectations. Then the final figure is typically arrived at through a combination of research and expert judgement. If you’d like to learn a little more about how much you could sell your house for and what factors impact that, book a free house valuation directly with Purplebricks.
Another term you may encounter when looking at property listings is "offer in excess of." This term indicates that the seller is looking for offers above a certain price point, but that they are open to negotiation. The main difference is that the Guide Price is intended to give buyers a rough idea of what the property might be worth, whereas the offer in excess of is a more specific price point that the seller is looking to achieve. In other words, the Guide Price is a flexible range that can be adjusted up or down depending on market conditions, whereas the offer in excess of is a fixed minimum price that the seller is looking to achieve. If you encounter an offer in excess of what has been set at a higher level than the Guide Price, you need to be prepared that you may need to offer significantly more in order to secure the property.
The Guide Price is an important indicator of the potential value of a property. It gives you a rough idea of what you might need to offer to secure the property, and it can help determine whether a property is within your budget. However, it's important to remember that the Guide Price is not a fixed amount, and it is not necessarily the price that the property will actually sell for. The final sale price will depend on a range of factors, such as the level of demand for the property, the number of competing buyers, and the overall state of the property market at the time.
Whether you’re buying or selling your property, setting the right Guide Price can directly impact how fast a home can sell and how much value a seller can get for their house. A Guide Price that is set too high can cause a property to take longer to sell or give the buyers a lot of room for negotiating down. Or a Guide Price set too low may result in the seller not getting as much for their home as they would have liked.
If you’re looking to put in an offer, it’s a good idea to start your negotiations at 5 to 10% less than the Guide Price. Starting negotiations at a lower price could result in you getting a better deal; however, if you start too low, you run the risk of offending your seller. Or if the property you’re interested in is particularly popular, you can offer more than the Guide Price to make your offer more competitive and attractive to the seller.
If you’re selling your property and you receive an offer of the full asking price you specified, you can decide whether you would like to accept it, which then moves the selling process forward to the next stage.
Alternatively, as the Guide Price is simply there to offer guidance on an estimated number, you can attempt to ask for more than what has been offered if you feel confident in your buyer. Although there are a variety of factors that can give you leverage, with any negotiation it’s always a good idea to consult your estate agents for expert advice and guidance to ensure you’re getting the best possible deal.
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Want to sell your property? Our experienced team of leading estate agents are on hand seven days a week. From valuation to price negotiation - we can help you every step of the way. Plus, we’ll list your property on Zoopla, Rightmove and many more.
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