We often get asked, 'What is meant by Guide Price'....
The price a seller is seeking for their property, often fixed price, although can be open to offers.
In short, as the word suggests, a guide of what the seller is hoping to acheive.
Often, guide prices are an invitation for buyers to make an offer to start negotiations. There should be interest in the property before the seller can begin to be sure that the price is more or less correct. Experienced estate agents usually have a good idea of what the seller is likely to accept and how much interest there is.
Offers in the region of (OIRO)
A wide band of pricing, the client and agent seem unsure on what is the right figure, There could be multiple reasons for this, sellers situation, property position or work needed to be done on the property. This is the most common pricing point where a buyer might try an 'excessively' cheeky offer, but always ask the agent about the interest first.
Offers over (O/O) or Offers in Excess Of (OIEO)
The seller is expecting offers over the price advertised. This doesn’t mean some may consider an offer slightly under but most will want offers above this price. Its normally done to gain interest in the property, or because agents and sellers have all come up with different figures on what they think it is worth.
Used in Auctions and Formal Tender, Its where the bidding should start and nothing under this will normally be accepted. Often the reserve price is undisclosed and confidential.
Although its the agents job to advise on pricing and strategy, it ultimately is the client that decides the level they are happy to accept.
If you would like any information about how to gain the best price for your property, please contact either of our offices, or myself, Nathan on 07446 882152