How to read a price guide, and what it does not tell you
A guide is an estimate of where competition will start, not a prediction of where it will finish. Here is how we set ours.
In New South Wales an agent's price guide has to be consistent with the estimated selling price in the agency agreement, and it cannot be lower than that estimate. That rule is a floor, not a formula, and different agencies set guides differently within it.
What a guide is based on
We set guides from recent sales of comparable properties, adjusted for the things that matter in each street: aspect, width, parking, and whether the house has already been renovated. We show vendors the comparables we used.
What it cannot tell you
- How many other buyers are interested
- Whether the vendor will accept an offer before auction
- How the property will be valued by your lender
Questions worth asking the agent
- Which sales was the guide based on?
- Has the guide changed during the campaign, and why?
- What is the vendor's preferred settlement?
- Are there registered bidders yet?
We will answer all four. If a guide changes during one of our campaigns, the change is noted on the listing and everyone who has inspected is told.
General information only, written for a demonstration website. It is not legal or financial advice.