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hackney

The Ever Changing Meaning Of "guide Price" In London

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It's funny how the psychology of a term can change based on your own view of the market and the real market conditions.

This year I saw a lot of property start to come on to the market with "guide price".

Up until the summer, this really did mean a price that may be hit, or very close at least. A way of encouraging those bids, and possibly even getting to a sealed bits scenario.

Now when I see guide price 6 months on in my area, I mentally read "speculative price". Guide price now means they are testing at that level, and almost certainly the price will not be hit.

Also "offers in the region of..." has made a return now, which to me is "guide price light". It says "we're going to have a try at 1.5 million because the vendor believes he can get it, but realistically I as an agent know it's a bit toppy, so please put an offer in anyway...."

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it may just be the time of year but guide prices do seem to be in a state of flux at the moment. i house on for £325k i was considering to view and offer £300k for has just been reduce to £290k. a few months ago i would have snapped it up but now i think its best to wait it out.

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hackney, I think you're spot on with this description "the vendor believes he can get it, but realistically I as an agent know it's a bit toppy, so please put an offer in anyway...." whether that's to refer to guide prices or OIRO. It does indicate to me a sign of desperation.

I wasted quite a bit of time with an EA when attempting to put an offer for a flat a few months back.

He kept maintaining that offers had to be in the range put on the advert and was told that no offers would be considered outside that range. A few days later, the so-called "range" had been replaced with a significantly reduced "guide price". I put a particularly "generous" offer very close to the guide price (but below) but kept being told that it was too low.

I lost patience with the EA and the owner as I knew they were just trying their luck. Considering the price that the flat had gone for 2 years before, this was genuinely taking the **** (500k against 310k in a not-so-nice part of Tower Hamlets). This I knew as a flat was going in the same building (but on the floor below). I simply went for the other flat as soon as it came on the market.

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