Guide Price vs Reserve Price | Scotland Property Auction
At a Scottish property auction, the guide price is the public figure you see in the advert — a rough indication of where bidding is expected to start. The reserve price is the private, confidential minimum the seller will actually accept, agreed with the auctioneer and never published. They are not the same number, and understanding the gap between them is the single most useful thing a buyer or seller can learn before an auction.
I'm Julie McAndrews, and I've spent years helping people across Scotland sell at auction. Almost every week someone asks me why a property "guided at £90,000" sold for £118,000, or why their own home didn't sell even though bidding passed the guide. The answer nearly always comes back to how these two prices work together. So let me walk you through it in plain English — no jargon, no sales patter.
- The guide price is public and indicative; the reserve price is private and binding.
- Under long-standing UK auction rules, a single-figure guide must sit within 10% of the reserve.
- A property cannot legally be sold below its reserve at the fall of the hammer.
- Guide prices are set deliberately low to attract bidders — final sold prices are often well above them.
- In Scotland, the same principles apply to both traditional auctions and the Modern Method of Auction.
What is a guide price at a Scottish property auction?
The guide price is the figure the auctioneer publishes to give buyers a sense of where bidding is likely to open. Think of it as a marketing signpost rather than a valuation. It can be shown as a single figure ("Guide Price £120,000") or a bracket ("Guide Price £120,000–£130,000").
Crucially, a guide price is not a promise of what the property will sell for. It is set to spark interest and get people through the door. Auctioneers know that a keen guide brings more bidders, and more bidders create competition — which is exactly what a seller wants. That's why so many auction lots end up selling comfortably above their guide.
What is a reserve price, and why is it kept secret?
The reserve price is the lowest figure the seller is willing to accept. It is agreed privately between the seller and the auctioneer before the sale, and it stays confidential. If the highest bid on the day doesn't reach the reserve, the property doesn't sell under the hammer — though it can often be negotiated afterwards.
The reserve is kept secret for a good reason. If buyers knew the exact minimum, nobody would bid a penny more than they had to, and the seller would lose the benefit of competitive bidding. By keeping it private, the auctioneer lets the market find its own level — which frequently pushes the price above what the seller would have privately settled for.
Can a property sell below its reserve?
Not under the hammer, no. The auctioneer is legally bound not to sell below the reserve without the seller's consent. If bidding stalls beneath it, the lot is "unsold" on the day. What often happens next is a post-auction negotiation: the underbidder and the seller talk, and a deal frequently gets done within days. So an unsold lot is rarely the end of the road.
Guide price vs reserve price: what's the difference?
Here's the distinction laid out side by side. If you remember one table from this guide, make it this one.
| Feature | Guide price | Reserve price |
|---|---|---|
| Visibility | Public — shown in the listing | Private — never published |
| Purpose | Attract bidders, indicate starting point | Protect the seller's minimum |
| Binding? | No — indicative only | Yes — the lot can't sell below it |
| Who sets it | Auctioneer, to generate interest | Seller, agreed with the auctioneer |
| Can it change? | Yes, during the marketing period | Yes, usually up to auction day |
| Typical relationship | At or slightly below the reserve | Within 10% above a single-figure guide |
How close is the reserve to the guide price?
This is where the rules matter. Following an Advertising Standards Authority ruling in 2014, and now embedded in the professional standards that chartered auctioneers follow, a single-figure guide price must be no more than 10% below the reserve. In other words, the reserve can sit up to 10% above the guide, but no higher.
So if a lot is advertised at "Guide Price £100,000", the reserve cannot legally be more than £110,000. Where a guide range is used instead, the reserve must fall within that published bracket. This rule exists to stop the old trick of "bait pricing" — advertising a tempting low guide for a property the seller would never actually let go at anywhere near that figure.
- 10%max gap between single-figure guide and reserve
- 28 daystypical completion in a traditional auction
- 56 dayscommon completion window under Modern Method
- 0chance of a legal sale below reserve
Worked examples make this clearer than any definition:
| Advertised guide | Maximum legal reserve | What it means for you |
|---|---|---|
| £80,000 (single figure) | £88,000 | Won't sell below £88k under the hammer |
| £150,000 (single figure) | £165,000 | Reserve is somewhere between guide and £165k |
| £200,000–£220,000 (range) | Within the range | Reserve sits inside the published bracket |
| £95,000 (single figure) | £104,500 | Budget with headroom above the guide |
Why are auction guide prices set so low?
It can feel like a con when a property sells for far more than its guide, but there's sound logic behind it. A low guide is a magnet. It brings more people to the viewing, more bidders to the room (or the online lot), and more competition on the day. Competition is what drives the price up — and a busy lot with six bidders will almost always beat a quiet one with two.
From a seller's point of view, this is a feature, not a flaw. The reserve protects your downside — you can't be forced to sell too cheaply — while the keen guide maximises your upside by pulling in a crowd. It's the reason auction can outperform a private-treaty sale for the right property, and why I often recommend it for homes that are unusual, in need of work, or that need to sell quickly. If you want the full picture on that, my guide to the pros and cons of selling property at auction goes deeper.
How much above the guide do properties actually sell for?
There's no fixed figure — it depends entirely on demand for that specific lot. A tired ex-rental in a sought-after street might attract a dozen bidders and fly past its guide; a niche commercial unit might scrape its reserve. What I'd say from experience is this: treat the guide as a floor for your expectations, not a forecast. The genuinely competitive lots are the ones that surprise everyone.
How do guide and reserve prices work in the Modern Method of Auction?
Scotland sees plenty of sales through the Modern Method of Auction (sometimes called conditional auction), and the same two prices apply. You'll still see a guide, and there's still a confidential reserve. The main difference is timing: instead of exchanging and completing fast under the traditional method, the winning bidder pays a reservation fee and then has a longer window — commonly 56 days — to complete, which makes mortgage buyers far more comfortable bidding.
Because the Modern Method opens auction up to ordinary residential buyers, not just cash investors, competition on a well-priced lot can be strong. The guide-and-reserve mechanics that protect the seller are identical; only the completion route changes.
- Draws more viewings and bidders
- Fuels competitive bidding on the day
- Reserve still protects your minimum
- Works for hard-to-value or unusual homes
- Guide is not your maximum budget
- Reserve can sit up to 10% higher
- Competition can push well beyond both
- Always factor in fees and legal costs
Setting the right guide and reserve when you're selling
If you're the seller, getting these two numbers right is the difference between a busy auction and a flat one. Set the reserve too high and you scare off bidders before they start; set the guide unrealistically low and you may attract the wrong crowd or, worse, breach the pricing rules. The sweet spot is a reserve you'd genuinely be content to accept, with a guide pitched just below it to pull in interest.
A good auctioneer will guide you on both, using recent comparable sales and their read of current demand. This is exactly the kind of thing I help Scottish sellers with — you can start with a free, no-obligation property valuation, or read my step-by-step walkthrough of how to sell your house at auction to see where pricing fits in the wider process.
What if my property doesn't reach its reserve?
Don't panic — it's more common than you'd think, and it's rarely fatal. When a lot doesn't meet its reserve, the auctioneer will usually approach the highest bidder straight after the sale to try to bridge the gap. Many "unsold" lots become sold lots within a week. You can also relist, adjust the reserve, or consider a different route entirely. If a fast, certain sale is what you're after, my overview of the whole selling process lays out the options.
How guide and reserve prices affect buyers
If you're buying — particularly if you're eyeing repossessed houses for sale in Scotland, where keen guides are common — the key is to do your homework before the auction, not during it. Research comparable sold prices, get your finances in place, and factor in that the reserve could be up to 10% above the guide. Then set your personal ceiling and don't let the adrenaline of live bidding push you past it.
The buyers who do best at auction are the ones who decided their maximum in the kitchen the night before — not the ones who got carried away in the heat of the room.
It's also worth understanding how auction "sold" outcomes differ from the private market. If you've been house-hunting the conventional way, you'll have seen properties marked "Sold STC" — my explainer on what Sold STC means in Scotland is a useful companion, because auction sales are typically more binding once the hammer falls.
Common myths about guide and reserve prices
Let me clear up the misunderstandings I hear most often, because they trip up buyers and sellers alike.
| The myth | The reality |
|---|---|
| "The guide price is what it'll sell for." | It's an indication to attract bidders — final prices vary widely. |
| "The reserve is the same as the guide." | The reserve is private and can be up to 10% higher than a single-figure guide. |
| "A low guide means a bargain." | Sometimes — but competition often pushes the price well up. |
| "If it doesn't hit reserve, it can't sell." | It can't sell under the hammer, but post-auction deals are common. |
| "Sellers can't change the reserve." | They usually can, right up to auction day. |
If any of the auction terms in this guide are new to you, my plain-English Scottish property terms glossary defines them all in one place.
Do guide prices work differently in Scotland than in England?
The mechanics of guide and reserve prices are essentially the same across the UK — the 10% relationship and the confidential reserve apply north and south of the border. What differs is the wider conveyancing system around the sale. Scotland has its own legal process, its own timescales, and the Home Report requirement, all of which shape how an auction sale completes.
In practice this means a Scottish auction buyer often has more up-front information than an English one, because a Home Report — including a single survey and valuation — is typically available before bidding. That transparency can make bidders more confident, which in turn supports competitive bidding above the guide. It's one of the quiet advantages of buying at auction in Scotland, and it's why I always encourage buyers to read the Home Report closely before setting their maximum.
A worked walkthrough: from guide to hammer
Let me put the whole thing together with a simple, realistic example so you can see how the numbers flow on the day.
| Stage | Figure | What's happening |
|---|---|---|
| Advertised guide | £100,000 | Auctioneer sets a keen guide to attract bidders |
| Confidential reserve | £108,000 | Seller's private minimum — within 10% of the guide |
| Opening bids | £95,000–£105,000 | Bidding starts near the guide, still below reserve |
| Reserve met | £108,000 | The lot is now "on the market" and will sell |
| Competitive bidding | £108,000–£124,000 | Two keen bidders push the price up |
| Hammer falls | £123,000 | Final sold price — well above the guide |
Notice how the guide of £100,000 did its job — it brought bidders in — while the reserve of £108,000 quietly protected the seller. The extra £15,000 over the reserve came purely from competition on the day. That's the auction dynamic in a nutshell, and it's why pricing the guide keenly so often pays off for sellers.
The bottom line on guide vs reserve prices
Once you understand that the guide is a public invitation and the reserve is a private safety net, Scottish auctions stop feeling mysterious. Buyers should treat the guide as a starting point and budget for the reserve plus competition. Sellers should pitch a keen guide beneath a realistic reserve to draw a crowd while protecting their bottom line. Get those two numbers working together and auction becomes one of the most transparent, decisive ways to buy or sell property in Scotland.
If you're weighing up whether auction is right for your property, I'm always happy to talk it through. Start with a free valuation and we'll take it from there.
Founder & Director of Scotland Property Auction, with 10+ years helping Scottish homeowners sell fast at auction.
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