What Is a Guide Price at Property Auction — and Should You Trust It?
If you're new to property auctions, the guide price is one of the first things you'll see — and one of the most misunderstood. Buyers often treat it as the expected selling price, or even the price they'll pay. Neither is reliable.
Here's what it actually means, and how to use it properly.
What Is a Guide Price?
The guide price is a marketing figure published by the auction house to indicate the approximate level at which bidding is expected to start, or the range within which the vendor may accept a bid.
It is set by the auctioneer in consultation with the vendor. It is not a valuation. It is not the reserve price. And it is not a prediction of what the property will sell for.
Guide Price vs Reserve Price
These two figures are closely related but distinct:
- Guide price — the published marketing number, visible to all prospective buyers
- Reserve price — the minimum price the vendor will accept; confidential until the auction
The rules set by the RICS and most auction houses state that the reserve price cannot be set more than 10% above the guide price. So if a property is guided at £100,000, the reserve can be no higher than £110,000.
In practice, guide prices are often set slightly below the reserve to attract more interest. A property guided at £95,000 might have a reserve of £100,000.
Why Guide Prices Can Be Misleading
Guide prices attract buyers into the room. Auctioneers know that a lower guide creates more interest, more competition, and often a higher final sale price. As a result:
- Some lots are guided low intentionally to generate bidding wars
- Others are genuinely distressed and the guide reflects real value
- A minority are guided too high by vendors with unrealistic expectations — these often get withdrawn
The only way to know whether a guide price represents genuine value is to do your own research independently.
How to Assess Value Beyond the Guide Price
1. Check Land Registry comparables Look at what similar properties in the same postcode have sold for in the last 12 months. This is publicly available via the Land Registry Price Paid Data.
2. Use estimated market value tools BelowHammer runs AI analysis on live auction lots, providing an estimated market value based on comparable sales and property data. This lets you quickly see whether a guide price looks cheap or overpriced before you do deeper research.
3. Factor in condition Auction properties often need work. A property guided at £120,000 with a market value of £180,000 might sound like a £60,000 profit — but if it needs £50,000 of refurbishment, the real margin is much tighter.
4. Consider the postcode and demand Guide prices don't account for how fast properties rent or sell in a given area. A good deal in a high-demand postcode is worth more than the same numbers in a slow market.
What Happens If the Reserve Isn't Met?
If bidding doesn't reach the reserve price, the lot is withdrawn unsold. This happens regularly. In these cases, you can approach the vendor through the auctioneer after the auction — sometimes at a price below what they'd have accepted in the room.
What the Guide Price Is Useful For
Despite its limitations, the guide price still tells you something:
- The general price bracket — is this a £50k terrace or a £500k development site?
- The vendor's rough expectations — even if the guide is tactical, sellers rarely accept far below it
- Comparative filtering — across a catalogue of 50 lots, guide prices help you shortlist which ones warrant deeper research
Think of the guide price as a starting filter, not a valuation. The real work begins when you read the legal pack, inspect the property, and run your own numbers.
Browse live UK auction lots with AI-estimated values on BelowHammer →