Auction vs private treaty
The two main ways Australian property is sold — competitive bidding on the day, or negotiated offers over time.
At auction, buyers bid publicly and the highest bid above reserve wins. The contract is signed immediately and is unconditional, with no cooling off and no finance clause.
Private treaty sales are advertised at a price and negotiated individually. Offers can include conditions such as finance approval or a satisfactory building inspection, and cooling-off rights usually apply.
Auctions favour sellers in strong markets by creating competition and certainty. Private treaty gives buyers more room to negotiate and to make an offer conditional.
Bidding strategy matters less than a firm limit. Auctions are designed to create urgency and competition, and the buyers who overpay are almost always those who set their maximum during the auction rather than before it.
Why auction risk is higher
Win at auction without finance confirmed and you are contractually bound. Failing to settle can cost your deposit and expose you to the vendor's losses on resale.
The bit people get wrong
Quoted auction guides are frequently below the realistic selling range, and underquoting is a persistent complaint despite being regulated. Judge value from comparable sales rather than the guide.
Common questions
Can I make an offer before auction?
Often yes. Vendors sometimes accept a strong pre-auction offer, though it usually must be on unconditional auction terms.
What is the reserve price?
The minimum the vendor will accept. Below it the property is passed in, and the highest bidder generally gets first right to negotiate.
Do I need a deposit on the day?
Yes. Typically 10% of the price is payable immediately on signing, so arrangements must be in place before you bid.