Auction Prices

Creating a pricing incentive to drive active buyers who are looking to invest in a property of your type and in your area is essential in any market. The difference between the guide price and reserve price is fixed at 10% however, the difference between the reserve and the final sale price has no upper limit to the price that can be achieved.
1
THE RESERVE PRICE

First of all, during an auction, the reserve price is the minimum amount that you as the seller is willing to accept. If the bidding in the auction ends below this figure, it will not be enough to trigger the sale and the property will remain unsold.

2
THE GUIDE PRICE

Guide price is a price at which the property will be marketed. It can be a single number e.g. £100,000+ or a range £100,000 to £110,000. This has to be set within the 10% of Reserve Price if described as a single guide or the reserve has to be within the range. As the name suggests, it’s a guide for the prospective bidders and isn’t necessarily enough to win the listing overall.

3
THE FINAL SALE PRICE

This figure is entirely dependent on the outcome of competitive bidding in the auction. It will typically be much higher than the both the Guide and Reserve Price. In fact, usually the lower the guide/reserve, the more prospective bidders come to bid and that usually leads to a bidding war which drives the final sale price up. That’s why we suggest that there is no upper limit in the auction.