But on the day of the auction, the reserve price may be more than $900,000. The guide price has been so low that the gavel has come down £20k above the upper guide price only to be withdrawn because it … The use of 'guide price' is increasingly common, and is probably a clearer description. At the auctions i've been to the guide price has bore no relation to anything apart from being very low in order to get punters through the door. For example, a house may be advertised with a price guide of $850,000 and $880,000. Through various surveys I've attempted to see how accurate the property prices estimated by real estate agents were by comparing the auction results of various properties across Melbourne - The results of which were a little surprising! As in, it's a guide to the price the owners are hoping to achieve for their property. It's worth asking the EA why the property has a 'Guide Price' rather than a conventional asking price. These are not the same and the guide price in the catalogue will often be less than the property eventually sells for. ... 3 of the houses were sold before auction at prices 4%, 6% and 10.9% higher than the top of the price range. How does this happen? Auctions typically feature a guide price and a reserve price.
how accurate are guide prices at property auctions