These are important questions when considering auction. Understanding the answers can help you approach the sale with greater confidence.
At First for Auctions, pricing advice forms part of preparing your property for market. We help you understand the role of the advertised guide price and agree a confidential reserve with you, so you know how both figures support your sale.
What is a guide price?
The guide price is the figure or range advertised alongside an auction property. It helps prospective buyers identify opportunities and decide which properties to investigate.
First for Auctions’ published guidance describes it as an indication of the seller’s minimum expectation. It is not a prediction of the final sale price, and it many change before the auction.
For sellers, this means the guide should not be viewed as a ceiling on what your property could achieve. For buyers, it means the advertised figure is a starting point for research, rather than a promise that the property can be purchased at that price.
What is a reserve price?
The reserve price is the minimum price which the auctioneer is authorised to sell the property during the auction. At First for Auctions, we agree this figure confidentially with you.
If bidding does not reach the reserve, the property will not sell under the hammer. This gives you an agreed minimum threshold while allowing buyers to compete above it.
The reserve does not guarantee a sale or particular profit. It establishes the minimum acceptable sale price, before any selling costs are included.
Question | Guide Price | Reserve Price |
What is its purpose? | Help buyers assess the advertised opportunity | Set the minimum authorised sale price |
Is it public? | Yes, shown in the marketing | No, agreed confidentially |
Does it predict the result? | No, bidding determines the eventual price | No, it sets a threshold |
Can bidding go above it? | Yes | Yes |
How do the two figures relate?
The guide and reserve have different roles, but they are connected.
First for Auctions’ listing guidance states that we expect the reserve to fall within an advertised guide range or no more than 10% above a single guide figure.
For illustration, a £200,000 guide would mean an expected reserve at no higher than £220,000 under that guidance. It would not reveal the exact reserve or limit the final price.
Always check the latest listing information, as guides can change before the auction.
Why the right pricing approach matters?
A guide price needs to encourage buyers to look more closely. Interest can lead to enquiries, viewings and investigation of the legal pack, the preparation that helps buyers decide whether to bid.
Setting expectations too high may discourage potential buyers before they explore the property. Equally, sellers need to understand and be comfortable with the reserve they agree.
At First for Auctions, we bring specialist pricing advice together with property marketing, local experts conducting viewings and monthly online auctions.
The aim is to create the conditions for competitive bidding. The final outcome will still depend on demand for your property; a guide price alone cannot create competition or guarantee a result.
Understanding your options before you decide
You do not need to arrive with a guide or reserve already in mind. Start with your property, your circumstances and what you would like to achieve.
Our team can explain how pricing would work for your sale, discuss your expectations and help you assess whether auction is a suitable route.
Wondering how your property could be priced for auction? Speak to the First for Auctions team about a strategy that suits your property and your plans.
