In Victoria and New South Wales, roughly one third of homes are sold at auction. Australia is one of very few countries in the world to regularly make use of auctions to sell homes – let alone “open outcry” auctions, where bidders compete with each other out loud in real time. Auctions are known for this transparency, and there is a perception among many sellers they may get a higher price. But what about their risks – in particular, what happens if an auction fails?