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Guide price vs reserve price vs sale price at auction: what each one means

Guide price vs reserve price at auction: what each figure means, how far a reserve can sit above the guide, and how the sale price and fees are added up.

4 min read
Last reviewed 4 November 2026
By Your Property Check team

Part 1 of 5

The three prices side by side

General information, not advice. Guide price vs reserve is the most common mix-up, because three different numbers appear in a property auction and people often treat them as one.

Figure	What it is	Who sees it
Guide price	The auctioneer's published indication of the seller's minimum expectation. A single figure or a range.	Everyone, in the catalogue
Reserve price	The lowest price at which the seller will let the property go. Agreed between seller and auctioneer.	Seller and auctioneer; not published
Sale price (hammer price)	The price the winning bid reaches when the hammer falls.	Everyone, at the sale

Auction House UK describes a guide as "an indication of each seller's minimum expectation", and a reserve as "a figure below which the Auctioneer cannot sell the property during the auction". Our own glossary gives the same shape: the guide is a starting point, not a valuation, and the reserve is the hidden floor.

Part 2 of 5

How far can the reserve sit from the guide

Auction House UK states that the reserve is expected to fall within the guide range, or no more than 10% above a single figure guide. That gives a simple check you can do on any lot:

Single-figure guide	Highest reserve under that 10% expectation
£100,000	£110,000
£180,000	£198,000
£250,000	£275,000

The arithmetic is ours (the guide plus 10%). Other auction houses may set their own rules, so check the terms of the one you are using. If a lot has a range, for example £180,000 to £190,000, the reserve is expected to sit inside that range.

A worked case from our glossary: a flat with a guide of £180,000 and a reserve of £190,000. Bids stall at £185,000, which is below the reserve, so the lot does not sell. That does not always end the story, because the auctioneer may talk to the seller and interested buyers after the sale, but no one is bound to agree.

Part 3 of 5

What happens at the hammer

If bidding reaches or passes the reserve, the auctioneer can sell. In an unconditional auction the buyer is then bound. The RICS consumer guide page says the successful bidder is legally obliged to complete the sale once the hammer falls. SDL Auctions' own guide, dated March 2021, describes the same: the buyer is legally bound, pays a 10% deposit with a stated minimum and exchanges contracts at the hammer.

If bidding stays below the reserve, the lot is unsold or withdrawn. The RICS practice alert on auction sales warns that failing to say a property did not meet its reserve, or showing it as sold or withdrawn when it was not, is likely to be misleading. For conditional sales it adds that all sale terms must be met and the final price recorded before a lot is marked sold. Our article on the modern method of auction explains why that matters.

Part 4 of 5

From sale price to total cost

The sale price is not the buyer's whole bill. Auction House UK says there may be additional fees on top of the final sale price, naming a buyer's premium payable on exchange and disbursements payable on completion. Its page on administration fees says the fee is payable by the buyer, plus VAT, alongside the deposit after the gavel falls, and can be a fixed fee or a percentage of the sale price subject to a minimum.

Here is how the arithmetic runs for a hammer price of £230,000, using only the 10% deposit as an example (fees vary, so they are left out):

Hammer price: £230,000
10% deposit paid on the day: £23,000, which counts towards the price
Balance at completion: £207,000
Administration or buyer's fees, searches and Stamp Duty Land Tax: on top, per the legal pack

Use the auction cost calculator to add fee profiles, and see our stamp duty calculator for the tax.

Part 5 of 5

Reading a guide price sensibly

A guide is a marketing figure showing the seller's expectation, not a prediction of the result. A property can sell above or below a range. Three practical habits help:

Look at the reserve rules in the auction's terms, not only the catalogue.
Compare the guide with recent local sales on the sold prices tool.
Set your maximum bid before the day, including every fee.

If you are the seller, you agree the reserve with the auctioneer. Setting it too high risks no sale; too low risks selling for less than you would accept elsewhere. Our how to sell a house at auction article covers the seller steps.

This page is general information, not advice. Terms were checked on 4 November 2026.

Our take

Budget from the reserve, not the guide price

The guide price is an indication, the reserve is confidential, and the sale price is where the hammer falls with fees on top. The common mistake is to treat the guide as the price you will pay. Auction House UK expects a reserve within the guide range or at most 10% above a single guide, so plan for the top end and then add costs.

Our free auction cost calculator turns a bid into the total cost of buying at auction, so you can see the figure you would really need before you raise a paddle. Use sold prices alongside it to see what similar homes nearby have actually sold for.

Cost an auction

Our opinion, drawn from the facts on this page: not advice and not a forecast. We earn from OfferCheck reports and from introducing sellers to cash buyers, so weigh it with that in mind (see our disclosure). We are not authorised or regulated by the FCA.

Questions, answered

Frequently asked questions

What is the difference between a guide price and a reserve price?

The guide is the published indication of the seller's minimum expectation. The reserve is the confidential figure below which the property cannot be sold in the auction. The reserve is agreed between seller and auctioneer and is not published.

Can the reserve be higher than the guide price?

Auction House UK says the reserve is expected to be within the guide range or no more than 10% above a single figure guide. So on a £200,000 guide, no higher than £220,000. Other houses may apply their own rules.

Is the sale price the same as the hammer price?

Yes in a normal auction: it is the price the winning bid reaches when the hammer falls. Fees such as an administration fee or buyer's premium are added on top, and some sales are conditional until contracts are exchanged.

What happens if bidding does not reach the reserve?

The lot is unsold or withdrawn. The auctioneer may talk to the seller and interested buyers afterwards, but nobody is bound. RICS says presenting such a lot as sold is likely to be misleading.

Is a guide price a valuation?

No. It is a marketing figure showing the seller's minimum expectation. Compare it with recent sold prices nearby and get your own advice before bidding.

Where this comes from

Sources

Last reviewed 4 November 2026 by the Your Property Check team. This page is general information, not legal, tax or financial advice. For your own situation, speak to a conveyancing solicitor or another qualified professional.