Estate agent
You set an asking or guide price and negotiate. Offers below it reach you, and nothing binds until exchange.
- Price
- Negotiated
- Binds
- At exchange of contracts
What a guide price means, and how the auction reserve price works
The same two words mean different things on an estate agent's listing and in an auction catalogue. At auction they are tied to a figure the public never sees: the seller's reserve.
On this page
The short answer
An auction reserve price is the seller's confidential minimum, and the lot cannot sell below it.9 At auction the guide price is tied to the reserve. The advertising regulators' advice treats the guide as the seller's minimum when published, not a valuation.3 On an ordinary estate agent sale in England and Wales, a guide price binds nobody.1
Guide price meaning: two settings, two sets of rules
Guide price means two different things in the UK. On an estate agent listing it is one of several ways to label an advertised price. We found no legal definition of it in England and Wales, so the general rule applies and the figure must not mislead. Since 6 April 2025 the Digital Markets, Competition and Consumers Act 2024 has treated false or misleading information that could affect a buyer's decision as a misleading action.11
At auction the term has a specific meaning. The advertising regulators' advice, which the RICS standard for auctioneers adopts as a minimum, ties the guide to the lowest price the seller will accept.39 Advice issued in December 2025 says that in auctions the guide represents the seller's minimum expectation and "is not a valuation".8
One label, two meanings
Estate agent listing Auction catalogue
What governs it3 Estate agent listing: No definition found. The general ban on misleading information applies Auction catalogue: The advertising regulators' advice, adopted by RICS as a minimum
When a sale binds9 Estate agent listing: At exchange of contracts Auction catalogue: When the hammer falls at or above the reserve, at a traditional auction
What a guide price on a house means with an estate agent
A guide price on a house or flat listed by an estate agent is an asking figure under another name. It is not an offer the seller must accept, and nothing binds either side until contracts are exchanged. A contract to sell land in England and Wales can only be made in writing, signed by both parties, with every agreed term in it.1 Exchange of contracts is the point where the signed copies are swapped and the sale becomes legally binding.
National Trading Standards' estate agency team, which enforces the law on property listings, treats the price as material information on every listing, shown as a number.4 A price range is acceptable only if it truly reflects market value. The same guidance warns against a range designed to raise interest, for example one whose lower figure falls into a cheaper stamp duty band.4 The guidance does not define the term guide price itself.
A guide price on an ordinary sale
- Binding on the seller?
- No. Nothing binds until contracts are exchanged in writing1
- Must the price be shown?
- Yes, as a figure. It is material information on every listing4
- Price ranges
- Allowed only as a true reflection of market value4
- Your offer
- The agent must pass it to the seller promptly and in writing2
Guide price vs asking price, and offers over
On an ordinary sale, guide price vs asking price is mostly a difference of label. Both are the seller's advertised figure, and neither binds anyone.1 The labels that carry a firmer message are "offers over" and "offers in excess of". The advertising regulator ruled in 2013 that readers take these to mean the lowest price the seller will accept. It found it misleading to advertise one below the seller's recorded bottom line.5
| Label | Where you see it | What the source says |
|---|---|---|
| Asking price | Estate agent sales | Material information on every listing, shown as a number4 |
| Guide price, ordinary sale | Estate agent sales | No separate legal definition found. Treated as the listing price, so the same material information and misleading action rules apply11 |
| Offers over, offers in excess of | Estate agent sales | Read by buyers as the seller's minimum. Misleading if set below the seller's bottom line (2013 ruling)5 |
| Guide price, auction | Auction catalogues | Tied to the reserve: inside the range, or within 10 per cent of a single figure3 |
| Offers over, Scotland | Scottish sales | Most homes are sold by blind bidding, with offers over or around a minimum price6 |
The Scottish row describes a different legal system. There, a seller setting a closing date need not accept the highest offer, or any offer.7
Can you offer below guide price?
On an ordinary sale, yes. An advertised price is not a contract, and the seller can accept, refuse or counter any figure.1 The agent cannot sit on a low offer either. It is an undesirable practice under the 1991 order for an agent to fail to forward details of any offer promptly and in writing. The one exception is where the seller has said in writing that offers of that kind need not be passed on.2
At auction the answer changes with timing.
Offering below the guide at auction
- Before the auction Offers must beat the guide at Bond Wolfe20 Its buying guide says offers must exceed the guide price to be considered.
- On the day Bidding can open below the guide9 Under the RICS standard the lot cannot be sold below the reserve.
- After an unsold lot A seller may take a lower bid23 iamsold says a seller may choose to accept a highest bid that fell short of the reserve.
On guide price and what to offer, we do not suggest a figure. Neither kind of guide is a valuation, and SDL's bidder terms say an auction guide is not necessarily the market value of the lot.18 Start from what similar homes nearby actually sold for. HM Land Registry's price paid search covers sales in England and Wales, free.25 Our sold prices tool draws on the same records.
What is a guide price at auction?
At auction, the guide price is the published indication of the seller's minimum. The rules come from the advertising regulators' 2014 advice, issued after a ruling against Auction House UK Ltd.3 Every guide must carry explanatory text, beside it or linked by an asterisk. That text defines a guide price, distinguishes it from a reserve and says both can change.3
Does the reserve have to be within 10 per cent of the guide? Not as a general rule. The 10 per cent figure applies where an auctioneer does not routinely update the guide whenever a reserve is set above it. That auctioneer's text must say the minimum sale price will fall within the guide range or, for a single figure guide, within 10 per cent of that figure.3 An auctioneer that does update its guides that way need not give that undertaking. Bond Wolfe's promise to keep the reserve within 10 per cent of a single figure guide is the firm's own term.20 Buyer fees on top of the price must be flagged right next to the guide, with how they are calculated.8
The 10 per cent condition on an illustrative £200,000 guide
- Single figure guideIllustrative £200,000
- Where the minimum sale price may fallWithin 10 per cent of the guide £180,000 to £220,000 3
- Guide rangeIllustrative £180,000 to £200,000
- Where the minimum sale price may fallWithin the range £180,000 to £200,000 3
- Seller's minimum under the RICS model definitionNo higher than the lower end £180,000 9
RICS goes further in the recommended practice section of its standard. Its model definition makes the guide the minimum price the seller will accept at the date of publication. Where a range is given, the seller's minimum should not exceed the lower end.9 In April 2025 RICS warned members that guides set below what the owner will accept, to draw bidders in, are misleading. Its alert says guides must reflect the anticipated reserve when published.10
Does guide price mean auction? No. The words appear on ordinary estate agent listings too. An auction listing gives a lot number, an auction date or bidding window and a legal pack, and any conditional sale must say so clearly in all marketing.9
What is a reserve price in an auction?
The reserve price is the lowest figure at which the seller authorises the auctioneer to sell. The lot can go to the highest bidder at or above it, never below.9 The seller sets it with the auctioneer's advice, and its amount stays confidential between them. Buyers must be told that a reserve exists, but not what it is.9
Reserve rules in England and Wales
- Telling buyers
- Since the Sale of Land by Auction Act 1867, the particulars must say whether land is sold with a reserve, without one, or with a right to bid reserved15
- Default
- Under the Common Auction Conditions every lot has a reserve unless stated otherwise14
- Bidding for the seller
- The seller, or the auctioneer for the seller, may bid up to the reserve but not at it14
- Sold without reserve
- The seller may not employ anyone to bid15
A reserve is not fixed once set. Under the RICS standard it is confirmed when the auctioneer is instructed or, with the auctioneer's agreement, at any time before the lot is offered. Each change should be confirmed to the seller in writing.9 RICS's consumer guide adds that sellers often fix it nearer the date, in the light of interest shown during marketing.12
Before auction day, I would settle with the auctioneer what you will do if bidding stops short of your reserve, so the decision is not made in a rush afterwards. iamsold leaves that choice to the seller, and a sale agreed after the auction can still carry commission under your terms, so know both before you sign.
Haroon Ali Author, The House Desk. Over 11 years in property and renovation Property auction reserve vs guide price: what four auctioneers publish
The House Desk read what four auction firms publish on the reserve and the guide on 23 and 24 September 2026, and they describe the link differently. Bond Wolfe publishes a firm limit and iamsold a general one. Allsop and SDL say the reserve can sit above the guide. Under the regulators' advice that is allowed only where the guide is updated whenever a reserve is set above it.3 We did not test whether any firm updates its guides that way.
| Firm | What it publishes on the reserve and guide | Can either change? |
|---|---|---|
| Allsop | Reserve typically set in the range of the guide, though not always. It may be at, above or below it.16 Its lot pages say a reserve may exceed a single guide figure, and stays within a guide range17 | Lists the idea that reserves "cannot be adjusted" as a misconception.16 The seller may fix the final reserve just before the lot is offered17 |
| SDL Auctions | Bidder terms: the reserve can exceed the guide, and is sometimes lower. The guide is no guarantee or indication of minimum value18 | Both can change at any time up to the auction18 |
| Bond Wolfe | Reserve never above the top of a bracket guide, or more than 10 per cent above a single figure guide20 | Not stated on the pages we read |
| iamsold | Publishes a starting bid, not a guide. Reserve generally no more than 10 per cent above it22 | Both the reserve and the starting bid can change22 |
SDL's own June 2025 article says the reserve sits within 10 per cent above or below the guide, which is narrower than the wording of its January 2026 bidder terms.1918 Bond Wolfe's glossary describes the guide as an indication of the seller's reserve.21
iamsold also runs the modern method, a conditional auction in which the winner pays to reserve the property and exchanges later.24 Its FAQs say that once the reserve is met, the seller must sell at the end of the auction.23 How the modern method binds each side is on our modern method of auction guide.
How accurate are guide prices at property auctions?
A guide is designed to be accurate about one thing, the seller's minimum at the time it is published.10 It makes no claim about the final price. SDL's bidder terms say the eventual sale price can land above or below the guide.18 RICS's consumer guide says auctioneers cannot know the final price in advance, which is why most prefer to tie the guide to the seller's minimum.12
RICS names two ways a guide can end up out of line. The seller's minimum may have risen after publication, in which case RICS says the guide is misleading and should be updated.9 Or the guide may have been set low to attract bidders, which the RICS alert calls bait advertising.10 Check the lot page and the addendum, the list of late changes, on the day.
What happens if the reserve is not met at auction?
When bidding stops below the reserve, the lot is unsold and nobody is bound. The auctioneer must say it has not sold and must not bring the hammer down.9 The RICS consumer guide says the auctioneer will usually try to sell it afterwards at the reserve or higher, under the terms of appointment.12
What happens when the lot is offered
- Reaches the reserve at a traditional auction Result: The hammer falls and a binding contract is made on the spot.9
- Reaches the reserve under the modern method Result: At iamsold the seller must go ahead at the end of the auction. Exchange follows later.23 How the modern method works
- Stops below the reserve Result: The lot is unsold. The auctioneer must not bring the hammer down.9
- A buyer comes forward afterwards Result: Allsop says it often sells unsold lots after the auction on the same contract.16
A sale after the auction can still carry the auctioneer's commission. RICS says the terms of appointment set out commission on sales before, at and after the auction, whoever finds the buyer.12 What those fees are, and what firms publish, is on our auction fees guide.
How do you set an auction reserve price as a seller?
A seller sets the auction reserve price with the auctioneer. RICS advises asking the auctioneer at the outset what guide and reserve it would recommend, and how changes to either will be handled.12 The reserve is the one number at auction you control directly.
Reserve and guide move together. If you raise your reserve late, the guide may have to rise with it, or the published guide can become misleading.9 Setting a low guide to draw a crowd while holding a high reserve is what the RICS alert warns against.10
Bidders allow for the fees they will pay on top, and those fees must be flagged next to the guide.8 A reserve that looks modest can be a stretch for bidders once those fees are added.
- Get the reserve confirmed in writing, and every later change.9
- Ask whether the firm limits the reserve to within 10 per cent of a single figure guide, as Bond Wolfe says it does, or allows it above the guide.2018
- Ask who can change the reserve, and whether it can move without your say.9
- Ask what happens to an unsold lot, and what you owe on a sale after the auction.12
Questions people ask about auction guide prices
Is the auction guide price the starting price?
No, bidding can open below the guide, although under the RICS standard the lot cannot be sold below the reserve. The guide marks the seller's minimum at the time it is published. iamsold, which runs the modern method, publishes a starting bid instead of a guide and says its reserve is generally no more than 10 per cent above it.
Why are auction guide prices so low?
An auction guide is meant to mark the least the seller will accept when it is published, not to forecast the final price or value the property. SDL's bidder terms say the price can land above or below it. A guide set under what the owner will accept, only to draw bidders in, is what the RICS alert calls bait advertising.
Guide, reserve or asking price: which route fits?
A guide price reads differently on each route. At auction it sits against a reserve you set. With an agent it opens a negotiation, and a buying company gives no guide at all, only an offer.
Not sure which fits? Answer three questions and we will suggest one.
Property auction
A public guide, a confidential reserve, and a sale on the day if bidding reaches it.
- Price
- Bidding, above your reserve
- Binds
- At the hammer (traditional)
House-buying company
One buyer names a figure. Check the company behind the brand before you accept.
- Price
- The company offer
- Binds
- At exchange of contracts
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Why this route
Close second: Property auction.
Selling in Scotland works differently, with a Home Report and offers over a closing date. The guides note where Scottish rules differ.
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Sources
(26)
Numbers in the text link to these. Each was read on the date shown. How we research
- Law of Property (Miscellaneous Provisions) Act 1989, section 2
- The Estate Agents (Undesirable Practices) (No. 2) Order 1991, Schedule 3
- Guide prices in ads for property auctions
- Material Information in Property Listings (Sales): Guidance for Estate Agents, version 1.0
- ASA ruling on Express Estate Agency Ltd, reference A13-226041
- Buying a home: the legal process
- Selling a home: closing date and offers
- Auction guide prices and non-optional charges
- Auctioneers selling real estate (incorporating Common Auction Conditions), RICS professional standard, UK, 7th edition
- Practice alert, real estate auction sales
- Digital Markets, Competition and Consumers Act 2024, section 226 (misleading actions)
- Property auctions: a clear, impartial guide (consumer guide)
- RICS launch updated consumer guide to property auctions
- Common Auction Conditions (5th edition), reproduced with the consent of RICS
- Sale of Land by Auction Act 1867, section 5
- What is a reserve price in property auctions
- Lot overview: standard guide price and reserve notice (example, lot 124, Consett, commercial auction 30 September 2025)
- Bidder terms, January 2026
- How accurate are auction guide prices?
- Our buying at auction guide
- Glossary of terms
- Glossary of terms
- Property auctions explained, frequently asked questions
- Terms and Conditions, Modern Method of Auction
- Search house prices
- Property auction guide prices are not misleading, says advertising watchdog