So, you’ve started your property search, scoured the market, and found your dream home. But, before you can make your homeownership dreams a reality, you find yourself stumped by confusing phrases like buying guide price.
At Fees Free Mortgages, we’re your go-to advice-point for all things mortgages and property – no real-estate dictionary needed! Today, our experts are here to explain what buying guide prices are, how they’re used, and more!
In the property market, confusing phrases, like guide price often get thrown at potential buyers. While it’s easy to go along, it’s important to know what you’re getting yourself into every step of the way. So, let’s break down this estate-agent jargon together.
A house buying guide price is an estimated value assigned to a property by the seller or their real estate agent. While guide prices can deter buyers from making an offer, it’s important to note that they’re not set in stone. They simply serve as an indication of the approximate price range within which the property is expected to sell and are usually based on factors like the property’s size, location, condition, recent market trends, and comparable sales in the area.
House buying guide prices provide potential buyers, like you, with a starting point to assess the affordability and value of the property. If you play your cards right, the actual sale price can change depending on negotiations and market conditions. Therefore, buying guide prices should be considered a general point of reference, rather than a fixed or definitive value.
So, now you know what house buying guide prices are, you need to know when to look out for them. If you’re already scouring the market for property listings, or already taking on property viewings, then you’ll be familiar with them. In these circumstances, they can be used to put the ball in your court by helping you gauge the affordability and suitability of a property before committing to further investigations or negotiations.
Perhaps you’re sitting on the fence, stuck between two properties? Buying guide prices can come in handy at this point too. Prospective buyers like you can use buying guide prices as a benchmark to compare similar properties on the market, helping gauge their options’ value for money and make informed decisions about which properties to pursue further.
If you’re further down the road towards your homeownership destination, then buying guide prices can also influence your negotiation process. They make a great reference point when making offers or negotiating with the seller. Similarly, if you’re on the other side of the property market, as a seller, buying guide prices can assist you in setting realistic expectations, attracting the right pool of potential buyers.
Calculating a house buying guide price isn’t as simple as it looks – there’s a lot of consideration that goes into the prices we see on listings. The task is usually left in the hands of real estate agents and sellers – who consider various elements including the property’s size, location, condition, recent market trends, and comparable sales in the area.
No two properties are the same. That’s why house buying guide prices are also a reflection of the property’s features, number of bedrooms, square footage, amenities, and any other unique selling points that set it apart.
Before you take the plunge into the deep end of the property market, you need to be confident that you’re getting what you pay for. So, how accurate are house buying guide prices?
House buying guide prices provide an estimated value range for a property, but their accuracy may vary. While they serve as a starting point for assessing a property’s value, it’s important to remember that they’re not definitive or guaranteed sale prices.
Truth be told, the accuracy of buying guide prices depends on several factors, including the expertise of the estate agent or seller setting the guide price, the current market conditions, and the availability of recent sales data.
Remember that while guide prices are great indicators for both buyers and sellers, that’s all they are.They should be used as a useful starting point for you to establish if a property is appropriate for your homeownership budget and needs.
We’ve already established that a buying guide price is an estimated value range assigned to a property by the seller or estate agent, providing potential buyers with a starting point to gauge whether the property falls within their budget. So, how does this differ from the asking price?
While the buying guide price often has some leeway, the asking price is the specific price at which the seller is willing to sell the property. It represents the amount the seller hopes to achieve from the sale. The asking price is typically set by the seller in consultation with their real estate agent, taking into account the seller’s own financial objectives. Compared to the guide price, the asking price is often higher, as sellers usually leave room for negotiation to consider market trends and buyer demand.
In context, the buying guide price is used more by buyers during their property search and negotiation, while the asking price serves as a starting point for offers and potential agreements between the buyer and seller.
We’re all looking for ways to save, especially when it comes to climbing the homeownership ladder. Luckily, buying guide prices aren’t set in stone. Negotiations between you and the seller will often determine the property’s final price tag.
So, how can you make sure your negotiation skills are up to scratch? Well, firstly your negotiations on the final sale price will be based on factors like market conditions, property, condition, length of time the property has been on the market, and the seller’s own bargaining power. If you’re looking to save that little bit of money, then make sure you pay close attention to factors that may affect the property’s value.
But the ball isn’t just in your court, it’s in the sellers too. Sellers may be open to negotiation based on their urgency to sell, market conditions, and their own financial objectives. They may consider offers below the buying guide price if the market is slow or they’re motivated to sell quickly. But it isn’t always a walk in the park. In a competitive market or when there’s significant interest in the property, sellers may be less inclined to negotiate and may hold firm on the asking price. So, be prepared to open your wallet and offer above the buying guide price.
Now you know what a buying guide price is, when to look out for them, and how to negotiate them, the only question left is what’s next?
When navigating the complexities of property buying, working with mortgage brokers, like Fees Free Mortgages can be a game-changer. Our experienced team of mortgage experts stay up to date with current market trends, recent sales data, and pricing patterns, meaning we can provide you with valuable insights into the accuracy and relevance of house buying guide prices.
Whether you’re a first-time buyer or looking to remortgage, our brokers can connect you with professional property valuers, lenders, and beyond.
With a wide network of contacts and unbiased approach, we can source the most competitive mortgage rates and favourable terms for your needs, no extra fees needed! Contact us today to get started.