Finding the right property for your needs that also meets your budget can be challenging at times, and often the price listed isn’t necessarily the amount the seller will accept for the property.
This is because some prices listed will be an ‘asking price’ whereas others will be a ‘guide price’. In some cases, a seller may even be asking for ‘offers in excess of’.
These terms are significant as they offer insight into whether the seller is looking for a firm price or is open to negotiation.
The difference between asking price and guide price
An asking price is simple. It’s how much the seller wants for their property.
Sellers who list with an asking price will be looking for the exact amount or will only be open to offers close to that amount.
A guide price indicates how much the seller would like to secure for their home, but suggests they are more open to negotiation than if they’d listed with an asking price.
In some cases, a guide price is in place due to a difference in opinion between the homeowner and the estate agent over how much the property is valued, with a guide price being used to invite a wider range of offers. However, you should not assume this is the case.
‘Offers in the region of’ is sometimes used as an alternative to a guide price. It essentially means the same, but could suggest the seller is open to an even larger range of offers.
Money talks, so higher offers are more likely to be effective in both the case of an asking price and a guide price. Lower offers can be effective if the seller is looking to secure a buyer quickly, but it depends on their motivations to sell.
If it’s unclear if a lower, higher or exact offer is the right decision, you should get professional advice from your local sales team. It’s better to ask for guidance than to make an offer that could harm your chances of securing the property you desire.
Offers over
If a property is asking for offers over, then the seller is looking for offers above the price listed.
While most sellers want to achieve the best possible price for their property, it can be useful to know that the seller is looking for more rather than assuming they are.
It’s much less likely that a seller asking for offers over would entertain a lower offer, but it doesn’t mean they wouldn’t. However, you don’t want to risk souring relations with the seller by offering less if they are not open to it.
If you're looking for a new home and need to sell your current property as part of the move, book a free face to face valuation to find out how much your property could be worth.
Reeds Rains E-marketing Executive
