Should you Buy at Auctions or Private Sales?

If you have a choice, should you buy at auctions or private sales?

Here's Our Investor’s Guide to Making the Right Property Purchase in Melbourne

Which is better? Auction or Private Sale?

If you're familiar with the Melbourne property market, you've probably realised the 2 main forms of marketing a property is either via Auction or Private Sale (Private Treaty). And of course, plus their many other variations. But essentially, the processes revolves around either auction or private sale.

So, assuming you are in a position to choose whether to buy at auctions or private sale, You'll be wondering if

Auction or private sale—what’s the smarter way to buy?

So, let's start by prefacing this. In a hypothetically perfect world, where you have a choice,

Should you Choose to Buy at Auctions of at Private Sales?

It’s a question every investor, upsizer, and first-home buyer must face. And it’s not just about preference. It’s about timing, psychology, and strategy. In the world of property investment in Melbourne, understanding how to approach both methods can be the difference between a savvy purchase—and a costly mistake.

As any top Melbourne Buyers Advocate will tell you: there is no one "better" option. There’s only the better choice for you—and with that, you must have the right strategy to back it up.

The Auction Advantage (and the Risk)

Melbourne is known as Australia’s auction capital for a reason. In high-demand suburbs, auctions are the norm, especially for family homes, character properties, and in elite school zones. They create urgency. They play on emotion. And they’re built for competition.

Why Auctions Work

Auctions work, and many buyers advocates and buyers agents who love the transparency loves the auction process. Here's why:

• You see your competition and bid in real time.

• Properties often sell on the day—no drawn-out negotiations or due-diligence processes.

• Motivated sellers, especially if the home has been on the market for weeks.

But here’s the risk: auctions are traps for the unprepared. The whole idea of an auction is for force buyers to:

• expose their budget,

• entice buyers via competition, to extend their budget, to overpay,

• make a quick, unconditional and certain sale,

• not allow buyers to back off their offers.

Bidding emotionally, chasing the crowd, or misunderstanding the property's true market value will lead to overpaying—or walking away empty-handed.

How do you Win at Auction?

Auctions are not for the faint hearted and unprepared. Walking into an auction unprepared, or insufficiently prepared will certainly lead to regrets, which you might not be able to back away from.

So, preparation is a must, and you can never over-prepare for auctions. We'll briefly discuss our auction full winning tips here. For a complete understanding of how auction works and how to win it, refer to our Complete Guide for Winning Auctions.

Does Auctions Mean You Have to Pay More?

From experience, this is not true. In our 10+ years experience, we have seen properties being sold at lower prices during auctions.

Quick Auction Winning Tips:

• Know your limit before you walk in. Set it, write it down, and stick to it.

• Research recent comparable sales, not just the price guide.

• Bring an experienced Buyers Advocate to bid for you. Experienced buyers agents shields you from the emotions, and negotiation power in your corner if it passes in.

• Don’t be afraid to walk away. There will always be another deal—but not another bank account.

  
  

The Power of Private Sale

Private sales are less dramatic—but often more strategic. They’re quieter, more controlled, and built on negotiation, not competition to a certain extend. That’s why some of the best and new buyers agents in Melbourne favour private sales for their investor clients, for different reasons.

Why Private Sales Make Sense

Private Sales usually makes sense, but if you think there is less risks and easier to purchase at a private sale, you might be disappointed. Let's look at why private sales is good:

• More time to assess the property.

• Room for conditions: finance, building & pest, cooling-off period.

• Direct negotiations with the agent, not a crowd.

How to Win at Private Sales?

While Private Sales may give an "demure" impression, it is not as harmless as you thought. Sales agents have enough tricks and skills to make you overpay as well. And a seasoned agent can tell if you are new to the market, and how prepared you are. The best sales agent will always get to your last dollar.

So, what are some Private Sale winning tips? A complete guide is available at our Private Sale Winning Guide. But here is a short summary of that article.

Does Private Sales Means Prices Will Be Lower?

Again, this is not true. Sales agents are trained to extract every single dollar from you. And to do that, it is not unusual that they play mind games. They always seem to have another mystery who is paying a bit more, and they will always give you an opportunity to better your offer. Buyers usually do not know if there is indeed another buyer who had offered more.

Private Sale Winning Tips:

• Act fast but don’t rush. Good homes don’t sit for long.

• Ask smart questions. Smart Questions shows the agent you are prepared. Smart Question lets you understand how you should present your offer. There’s often leverage in the details.

• Make your offer clean and strong. Be ready with finance, assess the risks, keep terms simple, and offer with intent to buy.

• Get in early. A connected Melbourne Buyers Advocate can unlock pre-market or off-market opportunities that never hit the major portals.

So... What Should You Choose? Auctions? or Private Sales?

Here’s the truth: it’s not about auction vs. private sale—it’s about the property. Good properties in booming locations are often sold with the auction process. While in locations or properties with less demand, Private Sales are common.

As a buyer who wants to be savvy in the Melbourne real estate, you will need to be comfortable with buying in an Auction, and buying in a Private Sale. Here's why.

An Auction may turn into a private sale without warning, as demand is less than anticipated, or a Private Sale may turn into impromptu auctions with little to no warnings.

Being prepared for both is the best way to manage the Auctions and Private Sales. If you’re serious about property investment or buying your home in Melbourne, you will need to approach your property buying with a clear plan, discipline and right market insight. The right professional backing will help you make your purchase with little to no dramas.

How can Buyers Agents Help You in an Auction or Private Sale?

This is where working with one of the best buyers agents in Melbourne changes the game. An experienced independent buyers advocate (or buyers agent) doesn’t just help you buy a property—they help you:

✅ Understand with Deep and Relevant market insight

✅ Identify true market value

✅ Prepare and Navigate both auctions and private sales

✅ Negotiate from a position of strength

✅ Avoid emotional decisions

✅ Mitigate Risks and Stay on track.

✅ Avoid Overpaying

✅ Secure better outcomes, faster

In Auction, buyers agents would bid on your behalf, shielding you from the pressure and stress of open bidding. The buyers agent will help you manage the auctioneer, and crowd, while ensuring their buyer clients have sufficient time to process the bid and protect the secrecy of your budget.

While in a Private Sale, buyers agents would have the right skills to negotiate and the market expertise to determine what the other buyers would be paying. Buyers Agents help you negotiate for the best possible price to buy the property, while, at the same time, prevents you from overpaying for the property.

Final Word: Win Smart, Not Loud

In property, you don’t win by yelling louder or spending more.

You win by staying clear-headed, informed, and strategic.

Whether it’s the high-pressure theatre of an auction or the quiet tension of a private negotiation, the Melbourne market rewards buyers who plan ahead—and those who don’t play alone.

So ask yourself:

• Are you bidding based on emotion, or based on value?

• Are you negotiating blind, or with someone who knows the rules—and how to bend them?

• Are you reacting, or executing a strategy?

Ready to Buy Smarter? Let’s Talk.

If you’re planning your next move, don’t do it alone.

We help buyers every day succeed where others stall.

📍 Property investment in Melbourne is about more than buying property—it’s about buying right.

With the guidance of a trusted Melbourne Buyers Advocate, your next home or investment could be closer—and more achievable—than you think.

Talk to us now

💬 Talk to one of Melbourne’s best buyers agents today.

Let’s find your next opportunity—and make sure you buy it on your terms.