What Does Guide Price Mean When Buying a House?
In Simple Terms:
- Guide prices are starting points for offers, not set-in-stone selling prices.
- They reflect market trends and local demand to attract more buyers.
- You can offer above or below the guide price depending on interest and competition.
What Is a Guide Price?
A guide price is a suggested range or minimum price set by the seller, usually by the estate agent, to show what they hope to achieve for the property. It’s not a fixed amount, but an indication of the seller’s expectations used to attract interest and encourage competitive offers, especially in auctions or busy markets. Buyers can use the guide price as a starting point for negotiations, knowing there’s often room to offer above or below this figure.
Why Would Homeowners Want to Set a Guide Price?
Homeowners set a guide price to attract buyers, encourage offers, and reflect current market conditions when the property’s value is uncertain. Estate agents often recommend it to generate more viewings and create competition, especially in areas where prices vary or when owners and agents disagree on value. A guide price helps strike a balance, making the property appealing to buyers while still meeting the seller’s goals.
Guide Price vs. Asking Price
There’s often confusion between guide prices and asking prices. A guide price reflects the minimum amount a seller is willing to accept, while an asking price is the figure they hope to achieve. From our experience, homes may sell for less than the asking price but rarely for less than the guide price. Understanding the difference helps both buyers and sellers set realistic expectations.
Related Read: What is my house worth in 2025?
Expert Tip from our Property Expert Paul:
“From my experience, setting the right guide price is one of the best ways to get buyers through your door and start a bidding war. I know it’s tempting to aim high, but pricing realistically based on what similar homes in your area are selling for can actually help you attract more offers and even increase the final sale price. If you’re unsure where to start, always compare your prices with those of recent sales in the area. That way, you give buyers confidence and give yourself the best chance of a strong result.”
What’s the Difference Between Guide Price and ‘Offers in Excess Of’?
When a property is listed with ‘Offers in Excess Of’ (OIEO), it indicates that the seller will only consider offers above the stated amount. In contrast, guide prices are often published as a range or listed with terms like ‘Offers in the Region Of’ (OIRO).
How Is a Guide Price Set?
A guide price is set by weighing up four main factors:
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Location: Homes in sought-after areas or near good schools and amenities command higher guide prices.
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Size and Layout: Larger homes or those with extra bedrooms, gardens, or flexible layouts can justify a higher figure.
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Condition: Well-maintained or recently renovated properties attract better prices, while homes needing work may need a lower guide price to reflect repair costs.
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Local Market Trends: High demand can drive up guide prices, while increased competition among sellers may necessitate a lower price to attract offers.
The right guide price strikes a balance, attracting buyers while remaining realistic for current market conditions.
Can You Offer Below a Guide Price?
Yes, you can make an offer below a property's guide price. In fact, many buyers start with an offer that’s 5–10% below to leave room for negotiation. While this is common, the seller’s willingness to accept a lower offer often depends on their circumstances, the level of interest in the property, and the local market conditions. If the property has been on the market for a while or there’s less competition, a lower offer might be more likely to succeed.
Housebuyers4u Data: How Often Are Offers Below Guide Price Accepted?
| Metric | Hb4u Data (Last 100 Sales) |
|---|---|
| Offers below guide price accepted | 36% |
| Average reduction on accepted offers | 4.5% |
| Most common reason for acceptance | Fewer buyers or 8+ weeks on market |
Guide Price and Mortgage Valuations
A mortgage valuation is an assessment of a property’s value, carried out by surveyors on behalf of lenders. It helps the lender determine if the property provides sufficient security for the mortgage loan. When setting a guide price, it’s usually a good idea to align it closely with the valuation. This can help ensure smoother negotiations during the selling process.
Related Read: What is a mortgage down valuation?
How Accurate are Guide Prices?
Guide prices are generally a reflection of the seller’s and estate agent’s expectations based on local market knowledge and recent sales of similar properties. However, they are not guaranteed and may not always match the eventual selling price, as market conditions and buyer interest can influence the final outcome.
According to Rightmove, asking prices for newly listed homes in early 2024 rose by 1.7% to an average of £366,189, though this figure remained £9,000 below the market peak in May 2023.
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