How Are Guide Prices Valued at UK Property Auctions?

When buying or selling property at auction, you’ll come across “guide prices” — but what exactly do they mean, and how are they valued? Understanding guide prices is key to making informed decisions at auction, whether you’re a first‑time buyer, investor or seller.

This guide explains what a guide price is, how auction valuers determine it, and how accurate these prices tend to be when bidding at a UK property auction.

What Is a Guide Price?

A guide price is the figure (or price range) a property is advertised at before the auction. It gives prospective bidders an indication of:

• The seller’s minimum expectations
• The approximate level bidding may start at
• What the property could realistically achieve

Guide prices can be adjusted during the marketing period depending on interest and enquiries.

Guide Price vs Reserve Price

It’s important to distinguish between:

• Guide Price — the advertised figure to guide buyers
• Reserve Price — the minimum price a seller will accept

The reserve price is confidential between the seller and the auctioneer. By law, the guide price must be within 10% of the reserve price, helping buyers form a more accurate expectation of the likely final selling price.

How Are Guide Prices Valued at Auction?

Auction guide prices are based on a combination of market evidence, property characteristics and professional judgement. Key factors include:

1. Property Size, Condition & Features

Valuers assess the property’s overall condition, layout, repair needs and special features (e.g., land, extensions, development potential).

2. Location & Market Trends

Local market performance plays a major role. This includes demand levels, recent sales and the performance of similar properties sold at auction and on the open market.

3. Comparable Sold Prices

Auction valuers analyse what comparable properties have achieved recently — often focusing on the past six months to reflect current conditions.

4. Anticipated Buyer Interest

If early enquiries are strong, a guide price may be adjusted to reflect heightened interest.

5. Legal Requirement

Because the guide price must sit within 10% of the reserve, valuers balance accuracy with the seller’s agreed minimum.

A Common Buyer Rule of Thumb

Buyers often expect to add around 10% to the guide price to reach the reserve price — although competitive bidding can push the final sale price significantly higher.

Are Guide Prices Accurate?

Guide prices are based on professional valuation methods, but they are not a direct prediction of the final hammer price. Key things to keep in mind:

• Guide prices are sometimes set slightly lower to encourage interest and competitive bidding.
• Market conditions, demand and buyer competition can all cause the final sale price to exceed the guide.
• It’s essential to conduct your own due diligence, especially if you intend to bid.

Before Bidding, Always:

• Research the local market
• Attend a viewing
• Take a builder or valuer if renovation is needed
• Ask a solicitor to review the legal pack
• Set a clear maximum bid to avoid over‑stretching

If you’re planning to sell at auction, you may benefit from:

• Multiple estate agent valuations
• An auction appraisal
• Researching local guide and sold prices for similar properties

This will help you understand the value of your property and set realistic expectations for the auction.

Guide Prices at BTG Eddisons Property Auctions

At BTG Eddisons Property Auctions, we aim to set guide prices that are fair, transparent and reflective of the market — helping both buyers and sellers make confident decisions.

We run regular property auctions across the UK and provide expert advice throughout the entire process.

Browse our current lots to view their guide prices, or get in touch to book a free, no‑obligation auction appraisal if you’re considering selling at auction.