Price guides are set by the agent and are tactical tools that selling agents use in order to maximise competition for the property campaign.
There is a general rule to add 10% to a price guide to get an indication of where the agent expects the property to sell. However, this is not always the case…
For example, a price guide can be set low if the seller wants to attract buyers that might not necessarily be ready to go higher yet.
A price guide can also be set higher to ensure that buyers viewing the property are serious and have the budget for what the selling agent is looking to get.
While price guides can be helpful, they should not be used alone to determine if the property is right for you. Market research, investigation and liaising with the right industry professionals will provide you with realistic prices.
When you see a property advertised, ask for the price guide, but also ask what a realistic budget is to be able to be competitive for the property. If the selling agent sees you as a serious buyer, they are more likely to give you more information in order to help you arrive at an offer that is suitable for both parties.
As always, don’t hesitate to contact us with any questions or to start your home buying journey.
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