Auction Guide Price vs Selling Price

When you list a property for sale at auction, one of the first steps will be to agree on your guide and reserve price. The reserve is the minimum price you will sell for at auction and is kept confidential between you and the auctioneer. The guide price however is displayed on the auction marketing details and gives an indication of the sellers' expectations. However, guide prices vs selling prices are often different. 

Let’s run through all you need to know about auction pricing – and why picking the right pricing level can make a significant difference to your prospects of a quick sale.

 

Key Takeaways: Auction Guide Price vs Selling Price

• The guide price at auction is an indicative figure displayed in the marketing details - it reflects the seller's expectations but is not the minimum price the property will sell for. The reserve price, which sets the minimum, is kept confidential between you and the auctioneer.
  
• According to the Propertymark Auctions Barometer Q2 2025, 81% of UK auction lots achieve or exceed their reserve price. 
  
• Setting the right guide price requires balancing buyer appeal with a realistic valuation - taking into account comparable sales, development potential, and the costs a buyer will be expected to bear.
  
• An experienced auctioneer will recommend both a guide price and a reserve price based on professional knowledge of the market and the specific property.
  

Auction Guide Prices Explained

A great guide price will generate interest and encourage bidders to follow the property once the auction begins – without under-pricing the residence or being inflated, thus deterring buyers who may otherwise have been interested. It may not be what the property sells for and could be identical to the reserve or within 10% of the bottom guide figure – but provides a rough idea of what you and the auctioneer expect to make.

According to the Propertymark Auctions Barometer Q2 2025, 81% of UK auction lots achieve or exceed their reserve price, demonstrating the competitive bidding environment that can push final sale prices well above the guide figure. This confirms that the guide price can be considerably lower than the eventual selling price. [CHANGED: stat updated from unattributed industry estimate to Propertymark Q2 2025 data]

Related reading: How Does a Property Auction Work? 7 Steps to Auction Success

Advice on Setting a Fair Auction Guide Price

Choosing the right balance when setting auction prices can be complex. On the one hand, you want to encourage buyers to register for the auction and to follow proceedings on the day, with competitive bidding a great way to achieve a sale value. A good auctioneer will always recommend a guide price and reserve price based on their own professional experience and by  balancing both buyers and sellers expectations.

How to Choose Your Auction Property Guide Price

Whilst the auctioneer is likely to provide advice on the guide price, there is a method to set one. The initial step to picking the right guide price is to think about who your target audience is and why your property will appeal (is there likely to be high demand). It's also important to evaluate the realistic value of the property and any costs the buyer will be expected to bear - including buyers' fees payable on top of the hammer price.

For instance, a property needing improvements and repairs costing roughly £100,000 to reach an end valuation of closer to £500,000 could attract a fairly reasonable guide price.

Setting the guide price at between £225,000 and £275,000, depending on the area and the square footage of the property, would potentially mean hitting £300,000 – while emphasising the development potential and the strong profitability forecast.

Looking behind the sums from the buyer's perspective is useful. In this theoretical scenario, we're considering selling a property for around £275,000 with £100,000 of anticipated work to bring the residence into good condition – a total investment of £375,000, plus fees.

The guide prices remain viable and attractive if the property is realistically likely to be valued at £500,000 – or more – after that, returning a gross profit of £125,000 or a return of 25-30% on the investment.

This element is why selling at auction is so different from a private treaty sale when almost every interested buyer will be looking for a property to buy and live in. Although some will be keen to find homes with the capacity to add value, the immediate profit margins available are often most tempting to developers.

Whilst the guide price isn't the minimum, it indicates the seller's expectations, in most cases, reaching a final sale bid above both the reserve and guide value.

Related reading: Buying a House That Needs Renovation - Here's What to Consider Related reading: Read our guide on buying a house at auction here.  

Expert Advice on Selecting the Optimal Guide Price for Your Property Auction Sale

As we've seen the guide price and the selling price can be quite a distance apart (in a good way!). Picking a guide price is more involved than simply making a rough guess as to what property or plot of land is likely to sell for at auction. It can be a fundamental part of the property marketing process and dictate the types of buyers who are most inclined to register for the auction.

It's also important to be mindful of the limitations on variances between reserve and guide prices. However, this may not apply if marketing doesn't feature a fixed guide price or the property is open to bids at any starting point with a reserve in the background.

Before proceeding to auction, prospective buyers are strongly advised to review the auction legal pack, which contains the title deeds, searches, and special conditions of sale - all of which can affect the price a buyer is willing to bid.

If you'd like a chat about what reserve and guide prices are most appropriate for your property or to discuss any of the information within this guide, please call the Clive Emson team at any time or fill out a FREE appraisal form here. 

We have decades of experience supporting auction buyers and sellers and managing the sale of varied property types, from residential homes to unusual constructions and empty plots, and we will share our thoughts and insights to help you make informed decisions.

Speak to a Clive Emson Specialist

If you are ready to discuss your guide and reserve price, or simply want to understand more about selling a property at auction, our team is here to help. Call us on 0345 8500333, email auctions@cliveemson.co.uk, or complete the free appraisal form and we will be in touch to talk through your options.

Frequently Asked Questions

What is the difference between a guide price and a reserve price at auction?

The guide price is an advertised figure that indicates the seller's expectations and is used to attract bidders. It is displayed in the auction catalogue and online marketing. The reserve price is the minimum figure the seller will accept and is kept confidential between the seller and the auctioneer - it is never made public before or during the auction. The two figures are linked: the reserve cannot be more than 10% above the guide price where a single guide figure is given.

How accurate is an auction guide price?

Guide prices are indicative rather than precise. They are set to generate bidder interest, so they are often slightly below what the auctioneer expects the property to sell for. On average, properties at auction sell for 15% to 25% more than the guide price, though the final result depends on bidder competition on the day. In some cases, properties achieve double the guide figure.

How much over the guide price do properties typically sell for at auction?

There is no fixed rule, but data shows that between 15% and 25% of auction properties achieve more than the guide price. The gap between guide and selling price is usually most pronounced for properties with strong development potential or where competitive bidding drives up demand. A lower guide price can attract more bidders and ultimately lead to a higher sale result.

Can the guide price change before the auction?

Yes. Guide prices can be amended before the auction takes place, provided buyers are notified in accordance with RICS and NAVA requirements. Any change must be published within a reasonable period ahead of the auction so that prospective bidders can take it into account before proceeding. Your auctioneer will advise if a revision becomes necessary.

Do buyers pay additional fees on top of the auction selling price?

Yes. Buyers at auction are typically required to pay a buyer's administration fee in addition to the hammer price. These buyers' fees are set out clearly in the auction catalogue and the legal pack ahead of the sale. It is important for bidders to factor these into their maximum bid before auction day.

 

FREE Appraisal: Sell a property by auction with Clive Emson

So, if you are thinking of selling your property at auction or have any questions about the process, then please call us on 0345 8500333 or complete the online form below for a free independent appraisal.