Property Auctions: How To Decide What To Bid

How should I use the guide price when deciding what to bid?

The guide price, really, should not be used as an indication as to what the property is going to sell for when deciding what to bid. The guide price is more an indication as to where the reserve is going to be set and will often be well below the final sale price. This in turn helps the vendor and the auctioneers generate interest in the property and get people in to look at it. Remember, the property will sell to the highest bidder and by looking at databases such as ours you will be able to see what similar properties have sold for. And often, the guide price will be well below the final sale price. So try to get an accurate estimate as to what the property is worth on the open market to decide what your final pitch will be as opposed to using the guide price, as it may not be helpful to you.