Two paths. One property. And one big decision that could shape your final result.
When you’re preparing to sell, one of the biggest decisions you’ll make—right after choosing the right agent—is how to bring your property to market.
In Australia, the two dominant sales methods are auction and private treaty. And while both have proven successful in different settings, they each come with their own dynamics, advantages, and risks.
The best method depends on the market, the type of property, and—most importantly—what kind of outcome you’re aiming for. Whether that’s a premium price, a quicker result, or more control over terms, this guide will help you navigate the choice with clarity.
What Is an Auction?
An auction is a competitive public sale conducted at a set time and date, typically following a 3–4 week marketing campaign. Buyers gather—either on-site, online, or in auction rooms—and place bids in real-time, often driven by adrenaline and urgency.
If the reserve price (a confidential minimum set by the seller) is met or exceeded, the property is sold unconditionally on the day.
Common Auction Features:
- No price guide, just a campaign focused on driving competition
- Fast timeline with a clear deadline
- No cooling-off period for the buyer
- Settlement typically occurs 30 days after the auction
Real world example: In areas like Coorparoo or Camp Hill, auctions are a staple. Family homes often attract multiple registered bidders, and in competitive conditions, prices can soar well above expectations.
What Is a Private Treaty?
A private treaty (or private sale) involves setting a price—either a fixed figure or a price range—and inviting buyers to submit offers. The agent then negotiates with each party individually until both sides agree on a deal.
You’ll have more control over who buys your home, what conditions are attached (e.g. subject to finance or a building and pest inspection), and the timeline of the sale.
Common Private Treaty Features:
- Transparent price guide or asking price
- Negotiations occur behind the scenes
- Conditional contracts and cooling-off periods apply
- Sale period can be extended or adjusted as needed
Real world example: In suburbs like Loganlea or Marsden, private treaty is often the preferred method, especially for investment properties or homes targeting first-home buyers, who typically require finance approval and time for due diligence.
When to Choose Auction
Auction tends to work best in hot markets or supply-constrained areas, especially when:
- Buyer competition is strong
- Properties are unique or difficult to price accurately
- The vendor wants an unconditional result and firm timeline
Pros:
- Creates urgency: A set date compels buyers to act
- Drives competition: Emotional bidding can push prices higher than expected
- Unconditional contract: Once the hammer falls, the sale is final
- Transparency: Buyers can see their competition in real time
Cons:
- Upfront costs: You’ll need to invest in a strong marketing campaign and auctioneer fees
- No guarantee of sale: If bidding stalls below reserve, the property may pass in
- Buyer fear: Some buyers won’t bid at auctions—especially first-timers or those needing finance
- Emotional pressure: The process can be nerve-wracking if you’re unprepared
Best suited to: properties in blue-chip suburbs, prestige homes, or when buyer demand exceeds supply.
When to Choose Private Treaty
Private treaty may be a better fit when:
- You want more control over the process
- You’re in a balanced or cooling market
- You’re targeting buyers who need conditions like finance or inspections
- You’re looking to sell discreetly or with less time pressure
Pros:
- Greater flexibility: You control the price, conditions, and timing
- Wider buyer appeal: Suits first-home buyers, investors, and cautious purchasers
- Room to negotiate: Counteroffers and terms can be tailored
- Private process: Less public exposure if you’re not comfortable with open competition
Cons:
- Less urgency: Buyers may hesitate or delay offers
- Risk of lowball offers: Some buyers use private treaty to test vendor expectations
- Time on market matters: If the home sits too long, buyers may assume there’s a problem
- Conditional sales: Finance or inspection clauses introduce risk of contract fallout
Best suited to: suburban homes, investor stock, or sellers seeking more control and less pressure.
Hybrid Approach: The Best of Both Worlds?
In many cases, campaigns start with auction-style urgency but fall back to private treaty negotiation if a sale isn’t achieved on auction day. This can work especially well if:
- You receive strong interest early, but not enough to bid
- Buyers want to make conditional offers
- The market shifts mid-campaign
Real life hybrid example: A seller in Springwood launched with a 3-week auction campaign. The property passed in, but the competition and feedback allowed the agent to negotiate a premium price within days, backed by stronger buyer confidence.
Buyer Psychology and the Sale Method
It’s worth considering how buyers behave under each method:
Auction Buyers:
- Often emotionally invested
- More likely to bid above budget in the heat of the moment
- Must be organised—finance, building & pest done beforehand
- May fear missing out, leading to competitive bidding
Private Treaty Buyers:
- More cautious and analytical
- Want time to compare and negotiate
- Often need pre-approval or conditions
- Can walk away more easily if they feel pressured
Matching the buyer type to the method is key. If your buyer pool needs time, flexibility, and finance options, auction may deter them. If they’re emotionally attached or competing for a rare opportunity, auction could spark a bidding war.
Costs to Consider
Auction:
- Marketing campaign (photos, video, signboards, portals, print or social)
- Auctioneer fee (typically $400–$1,000 depending on agency and location)
- Styling/staging to enhance buyer appeal
- No refund of campaign costs if the property doesn’t sell
Private Treaty:
- Marketing campaign (similar cost range, but sometimes scaled back)
- May still include staging and digital ads
- Longer campaign may incur additional promotion later
Tip: Either way, your agent should present a transparent cost breakdown at the start.
Final Thoughts
There’s no universal “right” method—only the one that’s right for you, your property, and your local market conditions.
If you’re after urgency, competitive tension, and a firm, unconditional sale—auction could give you the edge. If you prefer more control, negotiation space, and wider buyer appeal—private treaty might be the way to go.
The most important decision? Choosing an agent who can confidently guide you through both, pivot when needed, and keep your goals front and centre.