Guide Prices: Clever Marketing or Just a Con?
I have over 45 years of experience as an estate agent, so I’d like to think I’ve seen most types of market conditions during that time.
Over the past few years, it has become increasingly common for agents to advertise properties using a “Guide Price” rather than a clear, fixed asking price.
For example, a property might be marketed as “Guide Price £350,000 to £400,000”, or in some cases with an even wider range, such as “£700,000 to £775,000.”
Personally, I find it incredible that these price ranges can be so wide. In reality, the first figure most buyers notice is the lower one – and in many cases, that figure is misleading.
So, is this clever marketing… or simply a con?
What often happens next is predictable. A potential buyer clicks through to view the full details, only to discover the higher figure. At that point, they feel misled and more often than not, they decide not to enquire at all. And frankly, who can blame them?
In recent months, I’ve spoken to and carried out research with a number of potential buyers, many of whom have told me they either won’t view a property advertised with a guide price at all, or are immediately put off because they feel the agent or seller is “playing a game”.
The last thing any seller wants, particularly in what is currently a buyer’s market – is to discourage viewings before they even begin.
So why does it happen?
Are some agents reluctant to give an honest opinion of a property’s true value? Or are they trying to secure an instruction by including a vendor’s desired figure at the unrealistic top end of a guide price range?
I’ll let you decide – but I would suggest it’s the latter.
Over the last few months, I’ve noticed in the newly added section of Rightmove that virtually 50% of homes are being reduced each day. Why is that?
To me, this only reinforces the theory of overzealous valuations designed to win instructions, rather than accurately reflect the market.
Think of it this way: if you visit your doctor or dentist, do they give you a wide range of possible diagnoses just to keep you happy, or do they tell you how it is? Like them, estate agents are professionals. Our job is to give clear, honest advice, whether it’s what you want to hear or not.
I genuinely relish the opportunity to speak with anyone who would value consistent, honest, and transparent advice, whether you’re actively selling now or simply thinking about the future.
Andy Hunt
Branch Manager, Leonard Gray Estate Agents
The author: Andrew Hunt
