The fevered excitement of auctions may provide the ultimate thrill for some, but new research has shown it can be a deterrent for others.

Westpac's Home Ownership report, which surveyed more than 1000 Australian home buyers, found that 56% of next home buyers admit to feeling too scared to bid at auctions, while a further 46% say they feel unsure of what to do.

Next home buyers are defined as Home Owner-Occupiers who are either considering, or prioritising, buying a home, upsizing or downsizing. 

While auction numbers have declined over the last year against a softening market, the latest figures show an uplift in the number of homes taken to auction, with clearance rates holding above 50 per cent for the first time since September 2018.

At a glance: 

• Westpac's Home Ownership report has found that 56% of next home buyers admit to feeling too scared to bid at auction.
• The report also found that eight in ten (84%) Next Home Buyers are taking steps to better educate themselves on home financing in preparation for their home ownership journey. 
• Almost half of next home buyers do not exactly understand some key home financial concepts, such as ‘equity’ (49%) or an ‘offset account’ (48%) 

Queensland Auction Services auctioneer Michael Vettoretto said some of the uncertainty from buyers in his state could be traced back to changes in legislation.

"Since the change from Property Agents Motor Dealers to Property Occupations Act in Queensland, first homeowners have always been cautious with making the first step in owning property," he said.

"We are finding that agents that are having a conversation with buyers are both educating and assisting them with buying property.

"We are finding that buyer management is vitally important when effecting a successful sale." 

In order to further educate buyers about auctions, Mr Vettoretto put together a list of tips for first home buyers at auctions, as well as information on vendor bids, what to do if a property is passed in, and why an agent may want to increase your bid. His advice included:

• Not strategising too much.
• Bidding with confidence.
• Setting a base limit.
• Making sure to bring your identification.

Mr Vettoretto prefaced the list with a brief explanation of why it is important to feel comfortable at auctions. 

"Auctions play a major role in how properties are sold in Australia so it is important to feel comfortable about bidding at auction," he said.

"If you don’t feel confident in bidding, your agent or perhaps a friend or relative can convey these bids for you as long as the relevant paperwork has been completed prior to the auction starting." 

His sentiments were echoed by Westpac’s General Manager of Home Ownership, Will Ranken, who said there was no substitute for being prepared.

“Auctions can be daunting, but again, by doing their homework and being well-prepared, home buyers can feel confident to make the most of current opportunities,” he said. 

“To ensure the best chance of success, home hunters should observe several auctions before they bid, before thoroughly research the property they’re interested in,  and asking the selling agent for comparable sales."  

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