In this brief blog, we will answer what a guide price means and how you can use it to be a more effective negotiator when buying a house.
What does guide price mean?
Guide price means a marketing figure used by sellers to guide prospective buyers on how much the seller is expecting to get. A guide price does not define how much the property will sell for but rather what the seller expects. A guide price may either be a single figure or a range.
What does it mean by guide price on a property?
On a property a guide price means the price that the seller thinks the property is worth and the price the seller expects to receive from selling the property. The final price could end up being above or below the guide price or its range.
Can you offer less than guide price?
Yes, you can offer less than the guide price but offering less than the guide price may not be a good idea as you are clearly going below what a seller has stated they may accept. Offering less than the guide price may see your offer rejected.
What does offer in excess of mean?
“Offers In Excess Of” (OIEO) Means the price offered by prospective buyers should be in excess of a stated price if not it may be rejected. An “offer in excess of” will be seen on property listings advising potential buyers on how to bid. You may view it as a marketing technique.
What does Fixed Price mean when buying a house?
When buying a house the fixed price means that the seller is only willing to accept this particular price and they will not accept anything below wat they have stated as the “fixed price”.
What does Priced to Sell mean?
Priced to sell means a property or asset has been priced to sell it as fast as possible. This means the sellers will likely not accept any further bids below the asking price as they have already discounted the price in order to attract bids.
Can you offer lower than the asking price?
Yes, you can offer lower than the asking price but offering lower than the asking price should be done in a reasonable manner which is in line with the market environment and properties value if not you could see your offer rejected. People will usually offer about 10 to 20% below the asking price to start negotiations.
Do you need a solicitor to make an offer on a house?
You don’t need a solicitor to make an offer on a house in England but in Scotland you need a solicitor to make an offer on a house.
In this brief blog, we defined what guide price means and answered some related questions to guide price and the home buying process..
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