Overbidding, widespread confusion around buyer rights, and growing delays have become defining features of buying a home in Ireland, according to a new report.
The study, published on Monday, found that the most common bidding systems encourage buyers to bid beyond their limits, contributing to inflated property prices, reports Breaking News.
The Economic and Social Research Institute (ESRI) carried out a behavioural science experiment to assess how “auction fever” affects decision-making among Irish homebuyers.
As part of the research, hundreds of homeowners and potential buyers took part in simulations of various bidding systems used in Ireland and internationally to observe how different formats shape behaviour, reports Breaking News.
The findings showed that bids were driven higher in “open auctions”, such as those run by estate agents or online platforms, compared to sealed-bid auctions.
Participants involved in open auctions were more likely to go over their original budget and to bid above what they personally believed the property was worth, reports Breaking News.
Because bidding systems based on open competition resulted in higher prices, researchers said this supports behavioural theories around “auction fever” and “loss aversion”, which suggest people are motivated to beat competitors and experience losses more strongly than equivalent gains.
Although participants said they preferred online systems because they appeared more transparent and fair, their auction behaviour indicates that open systems may in fact contribute to higher prices, reports Breaking News.
ESRI senior research officer Dr Deirdre Robertson said the findings show buyers are “navigating a system they may not fully understand and increasingly experiencing stress”.
A participant survey also showed low awareness of rights and responsibilities, with many misconceptions about legal protections and obligations, reports Breaking News.
While more than two-thirds of respondents knew it is illegal for a seller to accept multiple deposits on the same property, just one in five were aware that agents are legally allowed to continue marketing a property after it goes “sale agreed”.
In addition, most people were unaware that a buyer can withdraw from a sale without penalty before contracts are signed, reports Breaking News.
The research was funded by the Competition and Consumer Protection Commission (CCPC), which has previously called for reforms to simplify and increase transparency in the conveyancing process, including mandatory pre-sale requirements and full disclosure of property information on platforms.
The CCPC’s 2025 residential property market report also identified low levels of trust and transparency in the homebuying process, reports Breaking News.
Simon Barry, CCPC director of research, advocacy and international, said the study reinforces the need for reform and improved financial literacy.
He warned that errors and delays can be costly, adding: “It’s very important for homebuyers to exercise caution when approaching any type of auction, reports Breaking News.
“Buyers need to understand the bidding system they are participating in to ensure they make the right financial choice and stick to their intended budget for what is likely to be one of the biggest purchases they’ll ever make.”
While 63 per cent of people who previously bought a home in Ireland experienced at least one stressful obstacle, that figure rose to more than 80 per cent among those who purchased within the past three years, with delays cited most often, reports Breaking News.
Most participants also said they would prefer sellers, rather than buyers, to provide a property condition survey.
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