Homebuying in Ireland characterised by overbidding, misperceptions and delays

Ireland’s homebuying process is marked by auctions that induce overbidding, widespread misunderstanding of rights and responsibilities and increasing delays after sales are agreed, according to new research from the ESRI’s Behavioural Research Unit.

The research, funded by the Competition and Consumer Protection Commission (CCPC), draws on a nationally representative survey of 800 adults who completed a controlled auction experiment and a detailed survey of buyer and seller experiences and expectations.

The auction experiment tested how bidding behaviour changes when people face different bidding systems. Participants’ bids were pushed higher in open auctions (via estate agents and online platforms) than in a sealed bid auction. Participants in open auctions were more likely both to exceed their original budget and to bid higher than their view of what the property was worth.

The research also found significant gaps in people’s knowledge of rights and responsibilities. While more than two-thirds know it is illegal for a seller to accept multiple deposits for the same property, only one in five know that agents can legally continue to market a property after it goes “sale agreed”. Additionally, most people do not know that a buyer can pull out of a sale without penalty before contracts are signed.

While the majority (63%) of people who previously bought a property in Ireland experienced at least one type of stressful hurdle during the process, the figure rose to over 80% among those who bought in the last three years. The most common issues were delays. One third of second-hand buyers experienced a delay in conveyancing and over a quarter of newbuild buyers experienced a delay moving in. Others included finding problems after the sale, sellers pulling out and spending more on additional costs than expected. Conveyancing delays were also the most common stressful problem for sellers. 

When queried about their preferences for the system, one in two participants favoured a visible online bidding platform, believing it to be fairer and more likely to reduce prices. However, the auction experiment found that the online system actually inflated prices the most, with the sealed bid system least inflating prices. Most participants also want sellers to provide a condition survey rather than buyers.

CCPC has done previous work advocating for buyers within the homebuying market. The findings of this report chime with the CCPC’s 2025 report into information provision in the residential property market, which found low trust and transparency in the homebuying process. The CCPC has made recommendations to improve the buying process, including legislation covering pre-sale information and a new conveyancing profession to reduce delays. The CCPC also hosts a homebuyer’s guide on its website.

“The findings show that people are navigating a system they may not fully understand and increasingly experiencing stress, especially delays to conveyancing,” said Dr. Deirdre Robertson, Senior Research Officer at the ESRI and lead author of the report. “Our findings also suggest that the most commonly used bidding systems encourage people to overbid, inflating prices.”

Simon Barry, Director of Research, Advocacy and International at CCPC, said:  

“Buying a home is a major life decision that can be extremely complex. Mistakes and delays can be costly, and the CCPC made several recommendations in 2025 that could help alleviate the struggles homebuyers face."

"We welcome the results of this report as it reconfirms the need for reform in the conveyancing space, which is currently a major stressor for both buyers and sellers. The bidding experiment also points to a greater need for financial literacy in the homebuying process." 

"It’s very important for homebuyers to exercise caution when approaching any type of auction. 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.”