21/05/2026
Insights
A guide price is the figure published in an auction property listing to give prospective buyers an indication of where bidding is expected to start. It is not the minimum price the seller will accept, and it is not a promise about where the hammer will fall.
Understanding the difference between a guide price and a reserve price, and how the two relate to each other, is one of the most important things a buyer can know before bidding at auction.
Guide price vs reserve price: What's the difference?
The guide price is published in the lot listing and is visible to all prospective buyers. It signals the seller's broad expectations and is designed to attract the right level of buyer interest ahead of the auction.
The reserve price is confidential. It is the minimum figure the seller is prepared to accept, agreed privately between the seller and the auctioneer before the auction takes place. The auctioneer cannot sell the property below the reserve, so if bidding does not reach it, the lot is withdrawn.
The relationship between the two is governed by industry guidelines. In most cases, the reserve price will be set no more than 10 per cent above the guide price. This means a property listed with a guide price of £100,000 should have a reserve of no more than £110,000.
It is worth noting that guide prices can change between the initial listing and the auction date. If market conditions shift or the level of buyer interest changes, the guide price may be revised upward or downward. Always check the current guide price in the days leading up to the auction.
Book a free appraisal
Setting the right guide and reserve price is essential if you want to increase your chances of a successful auction. This starts with a free appraisal, where we provide a no-obligation valuation and advice on which auction type best suits your circumstances. Book yours today.
What does a guide price tell you as a buyer?
A guide price tells you roughly where the conversation starts, not where it ends. In practice, popular lots with strong buyer interest will often exceed the guide price significantly. Less competitive lots may sell close to or just above the reserve.
There are a few things worth keeping in mind when interpreting a guide price:
It is a starting point, not a ceiling
Guide prices are set to generate interest and encourage bidding. For lots with broad appeal, such as well-located residential properties, tenanted investments, or development sites in active markets, competitive bidding can push the final hammer price well above the guide. Never assume a property will sell at or near its guide price.
It reflects the seller's expectations, not the market's verdict
The guide price is agreed between the seller and the auctioneer before the lot goes to market. It is an informed estimate based on comparable evidence and the auctioneer's experience, but the actual market value is only confirmed when competitive bidding takes place on auction day.
A low guide price is not the same as a low value
Some sellers and auctioneers set guide prices deliberately low to generate maximum interest and drive competitive bidding. A property listed at an attractively low guide price may carry a considerably higher reserve, and the final hammer price may be higher still. Do your own research on comparable sales before deciding what a property is worth to you.
Guide prices can change before the auction
If interest in a lot is stronger than anticipated, or if market conditions change between listing and auction day, the guide price may be revised. Revised guide prices are published in the updated lot information and should be checked before you register to bid.
How should buyers use guide prices?
A guide price is a useful starting point for your research, but it should never be the only factor that determines your maximum bid.
Research comparable sales
Before bidding on any lot, research what similar properties in the same area have sold for recently. Land Registry data, property portals, and your solicitor can all help you build a picture of realistic market value.
If the guide price seems low relative to comparable evidence, factor that into your expectations for where bidding might end up.
Review the legal pack thoroughly
The guide price reflects the property as described in the legal pack. If the pack reveals restrictive covenants, short leases, planning restrictions, or other complications, these will affect what the property is realistically worth – regardless of where the guide price is set. Your solicitor should review the legal pack before you bid.
Factor in all costs, not just the purchase price
Your maximum bid should account for more than the hammer price. Buyer's fees, legal costs, stamp duty, and any refurbishment or development expenditure should all be factored into the figure you're prepared to go to. Our guide to buying at auction covers the full cost picture in detail.
Set your maximum before bidding opens, and stick to it
Auction environments are designed to encourage competitive bidding. It is easy to get caught up in the momentum and exceed the figure you originally had in mind. Deciding on your absolute maximum before the auction opens — and committing to it — is one of the most practical things you can do to protect yourself on the day.
How are guide prices set at BTG Eddisons?
When a seller instructs us to bring a property to auction, our team agrees on a guide price based on comparable sales evidence, the condition and tenure of the property, current market demand, and the seller's expectations. We aim to set guide prices that are realistic and reflective of the property's position in the market.
Guide prices are reviewed throughout the pre-auction marketing period. If the level of interest, or lack of it, suggests a revision is appropriate, we'll discuss that with the seller and update the listing accordingly.
If you're a seller and want to understand how we'd approach pricing your property for auction, a free appraisal with our team is the right place to start.
Guide prices for sellers: What to consider and next steps
For sellers, the guide price is one of the most important decisions in the auction process. Set it too high, and you risk deterring buyers before they've even looked at the legal pack. Set it too low, and you may attract interest that doesn't reflect the true value of your property – though competitive bidding should correct that where demand is strong.
Our team will advise you on the most appropriate guide price for your property based on current market evidence and the level of demand we anticipate. The goal is always to attract the widest possible pool of qualified, motivated buyers, and a well-calibrated guide price is central to achieving that.
Book a free appraisal to find out what guide price we'd recommend for your property.
Get in touch with the BTG Eddisons Property Auctions team
Please contact us for more details and information
