Should I Use a Price Guide in My Campaign?
A price guide can feel like a straightforward marketing tool, but getting it right takes more thought than simply picking a number that feels close to your reserve.
What a price guide is for
A price guide exists to help buyers self select into your campaign. It gives them a rough sense of whether the property sits within their budget before they invest time inspecting, arranging finance, and booking building and pest reports. Done well, it filters in the right buyers rather than filtering them out.
The risk of guiding too low
Setting a price guide well below your expected reserve is a common tactic, but it carries real risk. Buyers who inspect based on that guide, only to later learn the true expectation is significantly higher, can feel misled. That frustration often shows up as reduced turnout on auction day, or buyers walking away from the process altogether.
The risk of guiding too high
On the other end, a guide set too optimistically can scare away buyers before they even book an inspection, particularly those who would have been genuine, committed bidders at a fair price. You do not get a second chance at that first impression.
Finding the right range
The most effective price guides are grounded in the same evidence used to set your reserve, recent comparable sales and genuine early feedback from the market. A guide that sits close to a realistic, evidence based expectation tends to attract the right calibre of buyer and builds trust throughout the campaign.
Regulatory requirements matter too
In many states, including New South Wales, there are legal requirements around how price guides must relate to your reserve, and updating your guide is often required as your reserve evolves. Your agent should be keeping you across these obligations throughout the campaign.
The bottom line
A price guide is not just a marketing figure, it is a trust signal to every buyer who sees it. Set it honestly, based on real evidence, and it will work in your favour rather than against you.
If you would like help setting an effective and compliant price guide for your campaign, reach out to the team at Axford Auctions.