A quick question about guide prices...

[BlueKarou]

I'm looking at a buying plot of land, with the aim of going through planning permission and all that, then building a family home on it. I know that much is going to take a long while and not be easy, but I'm in a great position right now; renting a room from family and with no children to have to cope with all the upheaval.

The thing is; the plot is going to auction on Tuesday - it's easier all round to put my bid in at the auction (via proxy; I can't get there on the day) and so I need to figure out how much my maximum offer is. I've not dealt with guide prices before and just wanted to gather opinions - if you've put forward a guide price (one you wouldn't accept offers under) what are you actually expecting to get? 5% over? 10% over?

Any thoughts would be greatly appreciated!

Thanks ThunderboltKid

It's a fairly challenging plot with a restrictive covenant on the land which I spent the morning talking to my solicitor about. It shouldn't prevent building, however will mean I have to take out extra legal insurance just in case the beneficiaries kick up a fuss. Plus it's on the edge of an area of natural beauty, and near a National Trust house which might make it harder to get planning permission.

I'm hoping these potential complications have whittled out the competition who might not have the time to fight so hard for the ability to build. There are restrictions meaning only x houses can be built per acre, so that should have dissuaded developers. I'm thinking I can keep my max offer fairly close to the guide price, but am wary of going in too low. Also wary of going in too high!!!

The maximum you are prepared to go up to isn't what it will necessarily go up to though. It depends on whether you have people bidding against you. If the guide is 100k but you are prepared to pay 120k then it will only go up to 120k if someone bids against you. Figure out what the maximum you are willing to pay is and use that as your finishing point.