Revealed: property investors' biggest auction fears

From a panel of 1,001 Australians who are buying or selling property, having no buyers on auction day was a worry for 43 per cent of respondents, with selling less than reserve being the secondly most held auction fear at 37 per cent and the property passing in was third at 20 per cent.

Despite properties passing in was still a sizeable concern, data from Gavl showed that 91 per cent of properties that passed and sold for auction ended up selling for an average of $41,659 more than the last bid made.

According to Justin Nickerson, a spokesperson for Gavl, the fear of a failed auction or selling under reserve should be no big surprise.

“Low buyer turnout can indicate a lack of interest by the market and it’s a big concern for vendors,” Mr Nickerson said.

“It can be a reflection not only of the current real estate landscape but an indication of vendors asking for too high a price.”

When it comes to selling property, 67 per cent of respondents said they would want to broadcast auctions online in order to attract more buyers, with Baby Boomers nearly as open to the concept as Millennials, with 67 per cent versus 70 per cent of respondents, respectively.

Further, 58 per cent of Baby Boomers would watch auctions online if made available.

“The good news is that people are willing to embrace technology to give them the best outcomes, whether it’s vendors or buyers,” Mr Nickerson added.

“Vendors want greater agency over the number of potential buyers to give them a better chance of a greater selling price. Buyers want more opportunity to successfully purchase property by increasing their options through the digital sphere.”