Understanding the different ways to sell – and why the right strategy depends on more than the market
It’s a question I’m often asked by homeowners preparing to sell:
“Donna, should we go to auction or sell by private treaty?”
Both can be highly effective ways to sell a property, but there isn’t one method that’s automatically better than the other.
The right choice depends on your property, the likely buyer pool, current market conditions and, importantly, your own circumstances and priorities.
Understanding the differences is a good place to start.
How does an auction work?
An auction campaign typically runs over a defined period, with buyers encouraged to inspect the property, complete their due diligence and prepare to bid on auction day.
The competitive nature of an auction can create urgency among buyers, particularly when there is strong interest in a property.
One of the key advantages is transparency. Buyers can see the competition unfolding in real time and, when multiple motivated bidders are involved, that competition can help drive the final result.
An auction also creates a clear campaign deadline, encouraging interested buyers to make decisions rather than continuing to wait and see.
If the property sells under the hammer, the sale is generally unconditional, with no cooling-off period in NSW.
When might an auction work particularly well?
An auction can be a strong option when a property is likely to attract several interested buyers.
This may include homes that are:
- tightly held or difficult to compare
- located in particularly sought-after positions
- architecturally distinctive or unique
- attracting strong enquiry from multiple buyer groups
It can also be useful when determining an exact market value is difficult. Rather than placing a fixed asking price on the property, competition between buyers helps reveal what the market is prepared to pay.
But an auction isn’t automatically the right choice simply because a property is desirable.
The depth and behaviour of the buyer pool matters enormously.
How does private treaty work?
With a private treaty campaign, the property is marketed with a price or pricing strategy, and buyers submit offers privately through the agent.
Negotiations can take place individually, giving the seller more flexibility around price, conditions and timing.
For some homeowners, this feels like a more controlled approach.
It can also give buyers additional time to consider the property, arrange finance and negotiate terms – something that may suit particular buyer groups or property types.
When might private treaty be the better option?
Private treaty can work particularly well when buyers benefit from having a clear indication of price or when the likely buyer pool is smaller and more specific.
It may also suit sellers who prefer greater flexibility throughout negotiations rather than working towards a fixed auction date.
Importantly, private treaty doesn’t mean simply listing a price and waiting.
A strong private treaty campaign still requires careful pricing, quality marketing, active buyer management and skilled negotiation to create competition and achieve the best possible result.
What about selling before auction day?
Choosing an auction campaign doesn’t necessarily mean you have to wait until auction day to sell.
Strong offers can arise during the campaign.
Whether an early offer should be considered depends on the level of buyer interest, the strength of the offer and the seller’s individual priorities.
This is where having a clear strategy from the beginning becomes particularly important.
So, which method achieves the higher price?
This is often the question behind the question.
But neither auction nor private treaty can guarantee a better price simply because of the method itself.
The strongest result usually comes from choosing the strategy most likely to create competition for that particular property.
That requires understanding who the buyers are, how they’re behaving and how your home compares with other properties currently available.
Donna’s Perspective
“I don’t believe in recommending auction or private treaty simply because that’s how we’ve always sold a particular type of property. I look at the home, the likely buyers, current competition and what the owner wants to achieve.
The best sales strategy is the one that puts your property in the strongest possible position and gives us the best opportunity to create genuine buyer competition.”
Auction and private treaty are simply different tools.
The real skill lies in knowing which one to use, and how to execute it well.
If you’re considering selling, understanding your options before choosing a sales method can give you much greater confidence in the process.
Every property is different, and your sales strategy should be too.
If you’re unsure which approach might suit your home, Team Etchells is always happy to talk through the options and help you understand the strategy we’d recommend for your property.
Donna Etchells - McGrath Estate Agents 