What the guide price is for
In UK property auctions, the guide price is there to attract attention and stimulate bidding interest. It helps shape demand, but it is not the price the seller is committed to accepting.
Some guide prices are realistic. Others are deliberately pitched low to widen the bidder pool. That is normal auction behaviour, which is why buyers should treat guide price as a signal rather than an answer.
What the reserve price actually means
The reserve price is the minimum price the seller has agreed in advance with the auctioneer. It is usually not disclosed publicly. If bidding does not reach reserve, the property may remain unsold.
In practice, buyers often try to infer reserve from the guide price, prior listings, or comparable deals. That can be useful context, but it is still an inference, not a fact.
Why the distinction matters in real underwriting
If you anchor too hard to the guide price, you can waste time on lots that will almost certainly clear above the level where the deal still works for you. The opposite mistake is assuming every low guide is unrealistic and ignoring a lot that might still offer value.
The better approach is to set your own all-in ceiling. If the lot works at that number, bid up to it. If it does not, walk away, regardless of how the marketing is framed.
How to use this on DistressScope
When you review live opportunities, use guide price as one sorting and screening field, not as the valuation itself. The real job is still comparing the lot to condition, location, title, fees, and your intended strategy.
That is especially important when you are scanning lots from multiple auction sources at once, because guide-price conventions are not perfectly consistent across sellers.