Does guide price on Rightmove mean you need to have that amount in cash?

[gollyimholly]

I'm sorry if this is a really dumb question. I've always avoided looking at properties that say "Guide Price" because I think I was told many moons ago that the only way to buy those properties is via auction and you need to be a cash buyer. Is this true?

Rightmove's glossary says guide price is "An indication of a seller’s minimum expectation at auction and given as a “Guide Price” or a range of “Guide Prices”. This is not necessarily the figure a property will sell for and is subject to change prior to the auction."

Many thanks in advance x

no, but surely it tells you in the listing?

I'm not sure, it seems like the listings that say guide price are worded just like any other. Some listings say cash buyer (whether they say guide price or not), and I assumed when the listing that was a guide price listing didn't say cash buyer, the estate agent hasn't included that detail because it is something that goes without saying 😳

So does that mean when you buy via an auction, the process of getting a mortgage is much like getting a mortgage as if you didn't buy via an auction?

I get confused with this too. Especially when you're given a guide price but no further indication in the writeup that it's actually an auction!

My understanding:
Cash buyer = house is un-mortgagable (structural issues, missing kitchen bathroom, fire damage etc. No company will lend you money to but it). Not an auction.
Guide price = buyer wants a price in this range and will not drop below the lowest figure. Not an auction.
Starting price = auction first bid, but reserve price is higher.

Guide price in auction is where the bidding starts, usually the min they will sell for…you never know what way it’s going to go at auction.

Guide price means it’s negotiable, that’s how I take it anyway

It always tells you in the listing what the method of sale is. If auction then you'll typically need a lot more for the guide price. Properties often go for double that amount as they set the guide price low to get more interest. Then there will be another £10k+ in fees to pay.

Unless it’s an auction I take it as a sign of a dithering or undecided seller. Maybe a probate sale where people can’t agree on an asking price. Maybe a niche property that appeals to few people.
Guide price puts me off even if not an auction. In the same way a Purple Bricks sale does. Makes me think seller is not serious.

For auction properties, the guide price is what the auctioneer thinks the property will go for. Although some auction houses put them all up with a guide of £10-20-40k to get the bids to go wild.
Auction properties usually exchange on the day of the auction, so you’ll need the deposit in cash on the day. And complete 4-6 weeks later. The only way you can fund these is cash, or a specialist bridging loan.
You need to go through ALL the legal packs, because that will set out the additional charges owed by the buyer. They can include a transfer / pay off of debt etc. it’s really important you either know what you’re looking for in the auction packs, or pay a solicitor to review them for you.
If the hammer falls at £150k you have to also pay stamp duty, there might be sellers fee’s, auction charges - and these can be a % of the hammer price. It’s easy for £20k of charges to be tucked away in the pack. So you have to calculate your maximum bid, working back from all those charges.

You can’t get a traditional mortgage on an auction property. They take too long.
You have to fund the purchase & then remortgage in the future.

You should email rightmove about how much their glossary has confused you, as it’s understandable that you thought this after reading it.

But all prices on Rightmove are negotiable.

Basically you just need to ignore all the wording on Rightmove ‘Guide Price, ‘Offers in excess of’ ‘Offers in region of’ ‘Fixed price’. It’s all pretty meangingless. Just view the house, and if you like it offer what you think it’s worth.

My current house was listed as guide price on Rightmove. I just offered the same way I would on any other house, and I’m living here now. And that was with a mortgage required OP, so no you don’t need to be a cash buyer.

The only time you need to be a cash buyer is if the listing specifically says ‘cash buyers only’. The reason for that is normally that the property is unmortgageable for some reason.

And if in any doubt just speak to the estate agent about any house you’re interested in.

No it doesn’t. But estate agents are pretty good at letting you know if something requires cash only because of mortgage problems because it will be a problem for most buyers. So it should say on the listing.

I’ve always taken guide price as the seller wants really close to that amount and is unlikely to entertain an offer…I would still put in an offer if I wanted though- you never know

Auctions are usually cash as you are contracted to complete in 4 weeks so not time to faff on with mortgages usually. Some developers used bridging loans and such but be very wary of that as its basically like loan sharks and charge a fortune in interest.

Modern Method auctions where introduced to allow more for mortgages and stuff but most buyers hate them.

Guide price used to be auction only (and you can have mortgage on auction properties too), but some agents use it now for standard purchases instead of "in region of" etc. Which is stupid imho because many people sverve guide price listings thinking it's auction.

I hate this. Now a lot of properties are listed as “guide price £275k to £325”. The seller has no intention of taking the lower end, its mostly done to make the property appear in more searchs.

Doesn’t usually mean it’s auction unless it specifically says that.

This is why Buyers just want a price not a description like "guide price", "offers in excess of" or "offers in region of" - it's confusing.

Unless you're bidding in an auction, the expectation will be that you will be taking out a mortgage @gollyimholly

If a Right Move "Guide Price" property is an auction sale, it will explain this in the blurb below. I've been looking to buy with a mortgage and just ignored these. On RM you are able to filter out auction sale properties.

A house is only ever worth what someone is willing to pay for it, that someone may offer a higher price than you, its folly to pay more than you think its worth, however its aleays an emotional purchase so the above often doesn’t apply. Just reading this back,it would appear I have said absolutely nothing😂