• Skip to main content
Property Investments UK Logo
Skip NavigationMenu
  • About
  • Articles
    • Latest Articles
    • General Concepts
    • Property Experts
    • Local Market Analysis
    • Investment Strategies
    • Selling Property
    • Media and Press
  • Training
  • Buy a Property
  • Sell a Property
  • Mortgages
  • Create a Company
  • Contact

01/11/2017

Property Auctions: The Reserve Price Explained

Andy Thompson - Headshot
  • with Andy Thompson

    Andy Thompson is the Head of Auctions (North West) for SDL Auctions who sell a wide range of residential and commercial properties on behalf of both private individuals and corporate clients across the UK.

At a property auction, there is a guide price and a reserve price. A guide price is what a buyer will see in the auction catalogue and is a guide to the value of the sale. The reserve price is set by the seller and represents the minimum that they are willing to sell for.

What Is A Reserve Price?

Andy: A reserve price is set by (or on behalf of) the seller and the guide price is for the buyer. So, when you are looking through the auction catalogue, there will be a guide price. It will either be a banded guide price, or it might be between £50k to £60k or more.

That's the price that Joe Public sees. Obviously, you don't know what price the bidding is going to finish on in the room, but that guide price is there for the buyers, to give them an idea.

The seller, however, will have a reserve price, which is confidential. This is to give them a bit of security.

The buyer will never know what that figure for the reserve price is, but it is the minimum price that we can sell the property for.

So, if you were selling a property, and you went to auction, and the guide price was 50k, you might say, "I can't let it sell for anything less than 55". So, in this case, we'd set the reserve at 55. Then you, as the buyer, know that we're not going ring you up and say, "It's gone for 10 grand", for example.

More Articles with Andy

  • Introducing Andy Thompson from SDL Auctions
  • What Steps Should I Take Before I Buy A Property At Auction?
  • How Do Property Auctions Work?
  • What Exactly Is In The Legal Pack?
  • What Is Off The Wall Bidding?
  • Property Auctions – Does It Matter Where I Sit?
  • Auctions Fees | What Are The Costs To Buyers And Sellers?
  • How Do I Prepare For A Day At House Auction?
  • What Are The Risks When Buying A Property At Auction?
  • How to Find and Work With Good Property Auction Houses

Filed Under: Andy Thompson from SDL Auctions, Auctions

ON THIS SITE
  • Buy a Property
  • Sell a Property
  • Courses and Events
  • Property Crowdfunding
  • Blog
  • Reviews
LEGAL
  • Privacy Policy
  • Terms Of Use
  • Cookies
  • LOG IN

    Current members of any of our training programmes and courses can log in here:
    The Property Investor's Handbook
    The Buy-to-Let Masterclass

    PROPERTY INVESTMENTS UK

    Westminster House,
    10 Westminster Road,
    Macclesfield.
    SK10 1BX

    Company Number: 08852962
    VAT Number: 293 4194 80

    rob@propertyinvestmentsuk.co.uk

    DISCLAIMER

    Property investing, like any investment, carries risks. It is important to note that results achieved in property, from following our training courses may vary from user to user.

    For full details, disclaimer and policies click here.
    To contact us click here.

    MEMBER OF
    member-the-property-ombudsman

    Partnered with

    Property XYZ logo

    © 2021 - Property Investments UK - All Rights Reserved

    Sitemap