Barriers to Participation in Auctions: What Deters Potential Buyers

Despite increasing digitization of the auction process and greater publicity for online auctions, a significant percentage of interested citizens remain hesitant to participate. According to recent research by Landea, the barriers are not merely technical but largely stem from uncertainty and complexity surrounding the entire process. The biggest obstacle, cited by 66.2% of respondents, is the inability to physically inspect the property before purchase. This absence creates significant uncertainty, especially for inexperienced buyers who are essentially asked to make a purchase ‘blindly’ without knowing the actual condition of the property. This lack of visual contact makes decision-making harder, particularly when it involves personal or family housing. The second major deterrent, at 61.4%, is the fear of legal or procedural complications. Possible risks include interruptions in the process, delays in property delivery, or unforeseen legal disputes. Although many issues are resolved, the general sense of uncertainty discourages those without legal support or adequate information. Another 31.2% of respondents state they cannot find properties at attractive prices. As demand increases and prices rise, especially in urban centers, many buyers feel that advertised opportunities do not align with real values or offer enough margin for sale or exploitation to justify the risk. A further 29.9% claim the process is overly complex. Electronic auctions require constant monitoring, document registration, knowledge of legal matters, and often expert assistance—elements that discourage individuals without relevant experience or professional guidance. The lack of simplified, user-friendly procedures alienates a significant portion of the population. Only 24% of respondents cite ethical reasons for abstaining, a significantly reduced percentage compared to earlier years. Auctions, once a point of social and political contention, are gradually becoming normalized in the market. Ethical concerns are diminishing as better information and differentiation of circumstances reduce collective guilt or helplessness toward the process. These findings indicate a maturing market that remains inaccessible to many. Acceptance of auctions as part of economic reality is growing, but institutional and technical barriers persist. If the government and stakeholders wish to increase citizen participation, they must improve transparency, facilitate access to information, and reduce risks for the average buyer. Today, more buyers are willing to invest in residential properties offered at higher rates per square meter compared to previous years. Analysis shows that lower categories (under €900/sq.m.) are gradually declining, while mid-to-higher price ranges (€1,101/sq.m. and above) are on the rise. This trend is attributed to both increased starting prices and heightened competition among bidders during auctions.