A survey of 2,017 Australians conducted by finder.com.au found that while 60 per cent of respondents had “no opinion” on home auctions, nearly one in five (18 per cent) Australians said that they were “scared” of buying or selling a home at auction.
The study found that 12 per cent of respondents said that auctions did not scare them at all, while a similar proportion said that they “love auctions” because of the “thrill” and it helped them understand the value of their property.
The research noted that respondents from Generation Y were more likely to fear the auction process, with over a quarter of respondents (27 per cent) preferring not to buy or sell a property via an auction.
Finder.com.au insights manager Graham Cooke has attributed Gen Y’s trepidation to their dislike of “face-to-face” bidding and suggested that social anxiety is partly to blame.
“The research shows younger Australians are more scared about participating in auctions than older generations,” the manager said.
“Younger generations are used to the comfort and safety of their smartphones, making the idea of face-to-face bidding too terrifying for many.”
Further, 20 per cent of respondents from Generation X admitted that they were “scared” of the auction process, with Baby Boomers the least likely to fear the auction process (with only 7 per cent admitting to auction fear).
Mr Cooke suggested that those with auction anxiety should consider hiring a “professional”, and he highlighted that online auctions are now coming to the fore and may suit those who fear the face-to-face process.
“Online auction bidding is set to come in later this year, and it is likely to be popular with younger ‘digital natives’ who have grown accustomed to buying and selling other items online,” Mr Cooke said.
“It could definitely take the ‘scary’ out of auctions.”
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Charbel Kadib is the news editor on the mortgages titles at Momentum Media.
Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.