The Property Couch TPC Gold | Why Auctions Are So Emotional (And What To Do About It)
Mar 10, 2026
Phil Slade, a behavioural economist and psychologist who studies how emotions and biases shape decisions. He explains why auctions spark powerful feelings, how time pressure and competition cloud judgment, and why loss aversion can lead to risky choices. Practical tactics include using proxy bidders, simple pre-set rules, and taking a second viewing to shift from emotion to evaluation.
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Buying Property Is Mostly Emotional
- Buying a home is primarily an emotional decision that can override prior lists of requirements.
- Phil Slade explains people imagine living there, see it as a status signal, and suddenly abandon trade-offs when they 'feel' it's the one.
Auctions Amplify Loss Aversion And Risk
- Auction time pressure and competition amplify sellers' advantage and push buyers into reactive choices.
- Phil Slade notes loss aversion makes missing a house feel like grief, which then increases risk-taking to soothe the loss.
Assign A Proxy With Predefined Bidding Rules
- Set up rules and use a trusted person to bid for you to keep your rational brain in control during an auction.
- Phil Slade recommends predefining limits like "don't go over this amount" and slowing bids when too fast.