Auctions
Auction Guide Price vs Selling Price
At auction, the guide price is an indicative marketing figure to attract bidders and is usually set at or slightly below the reserve; the reserve price is the confidential minimum the seller will accept (the real floor); and the selling price is whatever the winning bid reaches on the day. Guide prices are deliberately attractive, so the final selling price often exceeds the guide — sometimes substantially in a competitive room.
What is your property worth?
Get genuine offers from checked & vetted buyers.
- Guidea marketing estimate
- Reservethe real floor
- Sellingwhat the room decides
- ~10%reserve above the guide
The three figures explained
| Figure | What it is | Who sets it |
|---|---|---|
| Guide price | Indicative marketing estimate to attract bidders | Auctioneer (published) |
| Reserve price | Confidential minimum the seller will accept | Seller (private) |
| Selling price | The winning bid on the day | The bidders |
Understanding all three is essential for both buyers (so you are not surprised) and sellers (so you set them strategically).
Guide price: a starting signal
The guide price is published to give bidders a rough idea and draw interest. By convention it is set close to, but not above, the reserve, and auctioneers often pitch it attractively to fill the room. It is explicitly not a valuation or a prediction of the sale price — under industry rules (and Property Ombudsman / NTSELAT guidance) the reserve can usually be set up to about 10% above a single-figure guide. Treat the guide as an invitation to research, not a promise of what the property will cost.
Reserve price: the real floor
The reserve is the confidential minimum the seller is willing to accept; if bidding does not reach it, the property does not sell. It is not disclosed to bidders, though it is typically near the guide. For sellers, the reserve is the crucial protection — it ensures the property cannot be sold for less than an acceptable figure, while the guide does the job of attracting competition. Setting the reserve too high, though, risks the lot not selling at all, so it should reflect a realistic floor.
Selling price: what the room decides
The selling price is the final winning bid once the reserve is met and the hammer falls — at which point the sale is legally binding (in a traditional auction). In a competitive auction with strong demand, the selling price can rise well above the guide and reserve as bidders compete, which is the appeal of auction for desirable or unusual lots. A quiet room may see a property sell at or just above reserve, or not at all. The spread between guide and final price can be wide either way.
What it means for sellers choosing a route
Auction’s upside is competitive bidding pushing the price above the guide; its risk is a quiet room and fees. For a property that will excite bidders, auction can work well. But if your priority is a guaranteed figure with no uncertainty and no fees, a cash sale gives you a fixed price and a completion in 7-28 days, with none of the "will it reach reserve?" risk. Compare the net outcome of each route. See selling at auction and buying at auction.
Don’t accept a lowball offer for your home
Compare genuine cash offers and investor options in minutes — free, no obligation, no fees.
Written & reviewed by Lisa Hayes, Founder
Lisa Hayes is the founder of Ready Steady Sell and an independent UK home-selling expert with over a decade helping homeowners weigh cash house buyers, property investors and the wider fast house-sale industry — without pressure or hidden fees. Every guide is reviewed for accuracy under our editorial standards.
LinkedIn · Expert commentary · In the media · Industry statistics
Frequently asked questions
Straight answers, no sales talk
Is the guide price what a property sells for at auction?
No. The guide is an indicative marketing figure, usually near the reserve. The selling price is the winning bid, which often exceeds the guide in a competitive auction.
What is the difference between guide and reserve price?
The guide is a published estimate to attract bidders; the reserve is the confidential minimum the seller will accept. The reserve can be up to around 10% above a single-figure guide.
Why do auction properties sell above the guide?
Guide prices are set attractively to draw bidders, so competition on the day frequently pushes the final selling price above the guide and reserve.
Can a property sell below the guide price?
It can sell below the guide only if the seller accepts a bid below it, but it cannot sell below the reserve. If bidding does not reach the reserve, the lot does not sell.
Is the reserve price made public?
No. The reserve is confidential between the seller and auctioneer. Only the guide price is published, which is why it is usually set close to the reserve.
What happens when the hammer falls?
At a traditional auction the sale becomes legally binding, the buyer pays a deposit immediately, and completion typically follows within 28 days.