Open bidding pushes Irish buyers beyond budgets as ESRI study finds rising stress and poor market understanding
Behavioural research shows online and agent-led auctions drive higher bids, while eight in ten recent buyers face transactional stress
9 February 2026 | 📧 editor@ipropertyradio.com
Open bidding systems commonly used in Ireland are pushing homebuyers to pay significantly more than they intend, according to new research from the Economic and Social Research Institute (ESRI), raising fresh questions about how homes are bought and sold in a high-pressure market.
The nationally representative study of 800 adults found that buyers bidding through estate agents or online platforms consistently offered more than in sealed bid scenarios and more than they believed a property was worth. In simulated auctions using realistic Irish house prices and budgets, bids placed through online platforms averaged around €15,500–€16,000 higher than baseline valuations, while estate-agent-led bidding increased bids by roughly €13,500–€14,000. Sealed bids still pushed prices up, but by a much smaller margin of about €7,000 Bidding.
Crucially for homebuyers, the experiment showed that open bidding systems made people far more likely to exceed their own “ideal budget”. Nearly two in three participants bidding online or via an estate agent went beyond the amount they had set as their preferred spending limit, compared with just over half in sealed bid scenarios. Researchers attribute this to behavioural effects such as auction fever and loss aversion, where competitive pressure encourages bidders to keep going even when it conflicts with their financial intentions.
The study also highlights widespread confusion about buyers’ and sellers’ rights. Participants answered, on average, fewer than half of the legal knowledge questions correctly. Fewer than one in three knew that buyers can withdraw from a sale without penalty before contracts are signed, and only one in five were aware that properties can legally continue to be marketed after going sale agreed. These gaps were evident even among people with previous experience of buying or selling, suggesting that familiarity with the system does not guarantee understanding Bidding.
Transactional stress is now the norm rather than the exception. Two-thirds of all buyers reported experiencing at least one serious stressor during their last purchase, rising to 84 per cent among those who bought in the past three years. The most common problems were lengthy conveyancing delays and unexpected non-purchase costs such as legal fees and surveys. Almost one in seven buyers suspected “ghost bidding”, an illegal practice, pointing to low levels of trust in the system. Sellers were less affected but still reported delays and price disappointment, with almost half experiencing at least one stressor Bidding.
Despite these findings, consumers expressed a strong preference for online bidding platforms, seeing them as more transparent and fair. More than half of participants selected visible online systems as their preferred way to buy and sell, and many believed such platforms would help slow house price growth. However, the experimental evidence suggests the opposite may be true, with open online bidding producing the highest prices of all systems tested.
The ESRI concludes that Ireland’s housing transaction process combines high financial stakes, poor information and procedural delays in ways that amplify behavioural biases. For homebuyers, the research points to a need for clearer guidance on rights and obligations, faster and more predictable conveyancing, and caution around open bidding environments that may encourage overpaying. While the study does not propose specific policy changes, it argues that reform should be informed by how buyers actually behave under pressure, not just by what they say they prefer.Â
