how does the guide price relate to the final selling price for property at auction?

Question

has anyone been to a property auction in the uk? (particularly birmingham)
Does the final selling price tend to be similar to the guide or much more?

Answer 1

A guide price is fairly similar to an indication price. (p.3, Best Price)

The seller or agent of the seller would place a price they think they can fetch for the property based on an index price of real estates around the area. If the guide price or the recommended bidding price is not met, they may decline all offers that have not met the requested price.

In practice under normal conditions, one should expect the sell price to match or be in excess of the quote price. The seller accepts the bid and the auction is completed, awaiting administrative and further negotiations. When the guide price is not met, some savvy buyers may try to negotiate with the seller or agent to sell the property after the auction has failed.

Depending on where properties are in Birmingham, guide prices would fluctuate against quantity surveyor assessed properties based largely on location, condition of dwelling followed by floor area.