Jessie and Russell James. “You become a lot more distrusting of agents,” Russell says. Source: Supplied

Auction sales in Victoria, NSW and the ACT hit record highs this year, but 48 per cent of bidders confess they are often underprepared, according to research house PureProfile on behalf of St George Bank.

The statistics were higher in sought-after areas in Sydney’s west and inner west, the bank says.

“I wouldn’t say bidding at an auction is terrifying,” manufacturing manager Russell James says. “It’s more the frustration. You go to a place, you are quoted a price, and you turn up and go to the auction day and it sells for a lot more. The first time you have stars in your eyes. The next time it becomes quite frustrating, you become a lot more distrusting of agents.”

James has been looking for residential property in Sydney’s northern beaches and an investment property in the city’s western suburbs.

In his search he has attended eight auctions, bidding at half of them with the intention of buying. He claims agent underquoting on a property can be as high as $150,000 on a million-dollar property.

“At four of these auctions I really wanted to win the property, but I did not come up trumps.”

James, who banks with St George and has since bought a property, now uses the bank’s new data systems, which provide free information on the suburb where he plans to bid.

“What (price) is right in one suburb is not always right in another suburb. It helps you get a better understanding of realistically what a property will sell for,” he says.

Research for St George Bank shows the three most difficult house hunting and buying processes are: making offers (46 per cent); evaluating what properties provide good value (44 per cent); and choosing the suburb to buy in (44 per cent).

More than 62 per cent of respondents said they did not have a strategy in place when bidding at an auction, while 51 per cent admitted they experienced anxiety ahead of bidding at an auction.

St George general manager Andy Fell says the survey results show some Australians are finding it challenging to buy property.

“St George understands that purchasing a home is one of the biggest investments in your life,’’ Fell says.

The bank has an online service called HomeHero.com.au to help customers prepare for an auction. Other banks such as Westpac provide free suburb profile reports via their websites. Westpac also provides the Westpac Home Find app for iPhones, which allows customers to research, rate and save properties they have seen.

Homehero.com.au

Westpac.com.au