Selling guide · 3 min read · Checked 21 October 2026
Auction or Private Sale in Melbourne: Which Is Right for Your Home?
In short
Neither method reliably gets more money on its own. Auction suits homes with several likely bidders, because a deadline and open bidding can lift the price. Private sale suits unique homes, slower segments and owners who want privacy or control over timing. Since 16 October 2026, Victorian auction reserves must be published a week before the sale, so the choice needs more thought than it used to.
What changed in October 2026
- From 1 October 2026 the Statement of Information became the Property Price Statement, with the agent’s indicative price, the three most comparable recent sales, the suburb median and more detail about the home.
- For auctions and fixed-date sales held from 16 October 2026, the reserve must be published as a single dollar figure, with no “from”, “over” or “+”, at least seven days before the sale. If it is not, the sale cannot go ahead.
- Once a home sells, the agent must publish the sale price within seven days and keep it up for 18 months.
Where the market is
Melbourne’s final auction clearance rate was 50.4% across 666 auctions in the week ending 4 October 2026, according to Cotality. In the first week of the new reserve rules, auction numbers fell sharply as sellers and agents rethought their method. In a market where about half of auctions clear, the choice of method matters more than it does in a boom.
How an auction works
A typical campaign runs about four weeks of marketing and inspections, ending on a set date. You agree the reserve with your agent in writing, based on comparable sales, and it is published a week out. On the day, buyers bid openly. If bidding passes the reserve, the home sells to the highest bidder on contract terms set in advance.
Buyers at auction have no cooling-off period, and nor do buyers who sign in the three clear business days before or after an auction. That certainty is one of auction’s main advantages for sellers.
How a private sale works
The home is marketed with a price guide set out in the Property Price Statement, and buyers make offers that you can accept, counter or decline. You control the timing and can negotiate on terms such as the settlement date, not just the price.
Most private-sale buyers have three clear business days to cool off after signing. If they withdraw, they lose $100 or 0.2% of the price, whichever is more.
A fixed-date sale, where offers close on a set day, follows the same reserve publishing rule as an auction.
Which suits your home
- Auction: broad-appeal homes in suburbs where several buyers are actively looking, and owners who want a firm date and an unconditional result.
- Private sale: unique or high-end homes with a small buyer pool, slower segments, homes that need explaining, and owners who want flexibility.
- Off-market: owners who value privacy above all, for example during a separation or an estate. Expect fewer buyers, so test the price carefully.
Questions to ask your agent
- Which method do you recommend for my home, and which comparable sales support that?
- How will we set the reserve or price guide, and will you show me the evidence in writing?
- What does each method cost me, including any auctioneer fee?
- How many campaigns are you running at the same time as mine?
- If we choose auction and it passes in, what is the plan for the following week?
Questions
What people ask us
Do auctions get higher prices than private sales?
Not reliably. Auctions can do well when there is real competition between buyers. In a quieter market or for an unusual home, a private sale often gives you more control. The right choice depends on your home and the current buyer pool.
What happens if my auction passes in?
The highest bidder usually gets the first chance to negotiate. If you cannot agree, the home moves to a private sale, ideally with a plan agreed before auction day.
Does the new rule mean buyers know my reserve?
Yes. For auctions and fixed-date sales held from 16 October 2026, the reserve is published as a single figure at least a week before. Many sellers are now weighing that against the competition an auction creates.
Can I switch from auction to private sale during the campaign?
Yes, and many sellers accept a strong offer before auction. Remember that a contract signed in the three clear business days before an auction has no cooling-off period.