Reading Auction Catalogues Like a Pro: Spotting Hidden Value
This article explores how to read a property auction catalogue properly and how to use the catalogue to spot hidden value before bidding.
29/03/2026By Pauzible Team · Editorial Team
Buying at a property auction can be one of the most effective ways to secure real value in the housing market. Auction purchases are fast, legally binding and often competitive, which means preparation is essential. One of the most important tools available to buyers is the auction catalogue. The auction catalogue is more than a brochure of lots for sale. It is also a practical guide and a signal of where opportunities and risks may lie. Buyers who understand how to read it properly can potentially identify undervalued opportunities and avoid costly mistakes. This article explores how to read auction catalogues like a professional buyer, what information matters most and how to use the catalogue to spot potential hidden value before bidding.
What is an auction catalogue?
An auction catalogue is published by the auction house several weeks before the sale date. It lists all the properties available in that specific property auction, usually referred to as lots. Each entry provides headline information designed to help buyers shortlist properties for further investigation.
The catalogue also serves a legal function. By directing buyers to the legal pack and any addendums, it forms part of the contractual framework governing the sale. Buyers are expected to review all relevant documents before bidding. For buyers attending house auctions, the catalogue is the starting point, not the final authority.
Key components of a property auction catalogue
Understanding what each section of the catalogue does and does not tell you is essential.
1. Property details and descriptions
Each lot includes a brief description, address and photographs. These descriptions are designed to generate interest rather than provide a complete picture. Language is often neutral or minimal and cosmetic detail may be understated or omitted.
Buyers should focus on structural fundamentals rather than presentation. A short or uninspiring description can sometimes indicate an opportunity where others overlook value. The listing will also indicate whether the property is vacant or being sold with tenants in place. Tenanted properties can offer immediate income but require buyers to accept the existing tenancy terms.
2. Guide price
The guide price is one of the most misunderstood elements of a property auction. It is an indication of the seller and auctioneer’s expectations and is not the price the property will sell for. Crucially:
The guide price is not the reserve price
The reserve price is confidential
The reserve can be up to 10% higher than the guide
Buyers should never assume a property will sell at the guide price. The final sale price is determined solely by bidding on the day. Experienced buyers treat the guide price as a signal as to the minimum price that the buyer may want to achieve, not as a valuation.
3. Viewing information
Auction catalogues usually list open viewing dates and times. Physical inspection is important when buying auction property. Photographs can conceal defects, layout issues or environmental factors that materially affect value. Where possible, buyers should attend viewings with a builder or surveyor who can identify signs of structural problems, damp or non-compliant alterations.
4. Legal pack access
The catalogue will also direct buyers to the legal pack, which is usually downloadable from the auction house website. This is the most important part of pre-auction due diligence. The legal pack contains documents that define what you are buying and on what terms. Failure to review it properly is one of the most common and costly mistakes buyers make at house auctions.
5. Addendum
An addendum contains updates or amendments to the catalogue or legal pack made after publication. Addendums can change completion dates, legal conditions or even property descriptions. They form part of the contract and are legally binding. Buyers must check the most up-to-date addendum online and again on the day of the property auction.
What the auction catalogue does not tell you (H2)
Just as important as what is included in the auction catalogue is what is omitted, namely, the reserve price and final sale price:
1. The reserve price
The reserve price is the minimum amount the seller will accept. It is not disclosed publicly and may differ from the guide price. Buyers must set their own valuation independently rather than attempting to guess the reserve.
2. The final sale price
The catalogue offers no guarantee of value. Competitive bidding can drive prices above market value, especially where multiple buyers pursue the same lot. This is why preparation and discipline are essential when bidding on auction property.
Scrutinising catalogue listings like a professional
When reviewing listings, here are some essential tips to remember:
Look past the marketing language
Auction descriptions are intentionally neutral. Phrases such as “in need of modernisation” or “scope for improvement” may conceal significant refurbishment requirements. Professional buyers also assess what is missing from the description rather than just what is included.
Understand tenure and tenancy
The catalogue will specify whether a property is freehold or leasehold. For leasehold properties, buyers should check the remaining lease length in the legal pack. Leases under 80 years can present mortgage and resale issues. If the property is being sold with tenants in situ, the buyer inherits the tenancy agreement.
Always check the addendum
Addendums often include critical information such as revised completion periods, additional fees or corrections to title issues. Ignoring the addendum can lead to unexpected obligations after the gavel falls.
The importance of the legal pack
The legal pack contains crucial documentation for buyers and is often considered the information that either confirms value or removes it. The pack should contain the following:
1. Special conditions of sale
Special conditions apply to individual lots and override general auction conditions. They may include:
Shorter completion deadlines
Seller legal fees payable by the buyer
Overage clauses linked to planning permission
These conditions directly affect potential profitability and must be reviewed carefully.
2. Title documents and plans
Buyers must confirm legal ownership and boundary accuracy. The title plan should match what was physically viewed. Restrictive covenants or rights of way can limit future development or use.
3. Searches
Local authority, water and drainage and environmental searches reveal planning history, infrastructure proposals and potential contamination risks. These issues can significantly impact investment outcomes.
4. Property information forms
Seller completed forms provide disclosures about disputes, services, boundaries and known issues. While not warranties, inconsistencies or omissions should raise questions.
5. Leasehold documentation
For leasehold auction property, buyers must examine:
Lease length
Ground rent
Service charges
Reviewing clauses
Due diligence beyond the catalogue
Professional buyers do not stop with simply viewing the catalogue. Here are further important steps you should take:
1. View the property in person
Photographs never tell the full story. Neighbouring properties, noise levels, access issues and structural defects can only be assessed on site.
2. Research comparable sold prices
Use Land Registry data to establish a realistic market value. Guide prices are often set low to attract interest and do not reflect true worth.
3. Set a strict maximum bid
Once bidding begins at a property auction, emotional decisions can erode profit margins. A disciplined budget should be determined prior to auction day, be strictly adhered to and include room for the following:
Purchase price
Auction deposit, usually 10%
Buyer premium, if applicable
Stamp duty
Legal and survey costs
Renovation or compliance works
4. Arrange finance in advance
Auction purchases typically require completion within 28 days. Buyers are legally bound once they win the bid. Finance must be in place before bidding, whether cash funds or auction-specific lending.
Spotting hidden value in auction catalogues
Hidden value often lies in properties that:
Have dull descriptions
Require cosmetic rather than structural work
Are mispriced due to poor marketing
Have manageable legal issues that may deter other buyers
Professional buyers use the catalogue as a filtering tool rather than a decision-making one, understanding that the real work of finding an auction property happens in legal review, valuation and planning.
Conclusion
Reading auction catalogues like a professional buyer is a skill developed through discipline and due diligence. The catalogue is not a promise of value but a roadmap to further investigation. By focusing on legal packs, understanding guide prices, checking addenda and conducting independent valuations, buyers can approach property auction purchases with confidence.
FAQs
Q. What is a property auction catalogue?
A. It is a document published by the auction house listing properties for sale and directing buyers to legal packs and conditions.
Q. Is the guide price the amount the property will sell for?
A. No. The guide price is indicative only and does not represent the reserve or final sale price.
Q. What is the most important part of the catalogue?
A. The legal pack, which defines the property and the contractual terms of sale.
Q. What is an addendum?
A. An addendum is an update or amendment to the catalogue or legal pack that forms part of the contract.
Q. Should I view auction property in person?
A. Absolutely. Physical inspection is essential to identify defects or issues not shown in photographs.
Q. Can I back out after winning a bid?
A. No. Auction purchases are legally binding once the gavel falls.
Q. How much deposit is required at auction?
A. Typically, 10% of the purchase price is payable immediately.
Q. Do auction properties complete quickly?
A. Yes. Completion is often required within 28 days.
Q. Can I use a mortgage to buy at auction?
A. Yes, but finance must be arranged in advance due to short completion deadlines.
Q. Why are some properties sold cheaper at auction?
A. They may have legal, structural or tenancy issues that deter other buyers.
The Pauzible Team consists of finance professionals and property market specialists dedicated to reinventing home ownership and BTL financing. With deep expertise across UK real estate and innovative financial products like Equity Partnership Agreements, we provide landlords and homeowners with the insights they need to unlock equity, navigate market volatility, and build sustainable wealth through property. Our mission is to make complex property finance simpler, quicker, and more accessible for everyone.
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