In Melbourne’s current auction market, approximately 35–40% of properties are passed in, meaning they don’t sell on auction day (CoreLogic/Cotality, April 2026). While this can be disappointing, it’s a common outcome. Most passed-in properties do sell within a few weeks via private negotiation, with the highest bidder having the first opportunity to negotiate. Vendors should prepare a post-auction strategy, including a walk-away price, before the auction itself.
A property passing in at auction means the bidding did not reach the reserve price set by the vendor and agent. While clearance rates are currently in the low-to-mid 60% range (CoreLogic/Cotality, April 2026), a pass-in isn’t necessarily a negative reflection on the property. It simply means the market didn’t meet the vendor’s expectations on that particular day.
What happens immediately after a pass-in?
Under the rules set by the Consumer Affairs Victoria (CAV), the highest bidder at auction has the legal right to negotiate with the vendor first. The agent will facilitate this discussion. It’s important to remember that a pass-in signals a shift in negotiating power; buyers will likely anchor their offers below the previously stated reserve price, knowing the vendor’s position is now more flexible.
Is a private sale after auction different?
Yes. Unlike an unconditional auction sale, a private sale allows for negotiation on both price and terms. This can include settlement dates, inclusions, or other conditions. The process typically involves the agent presenting all offers to the vendor, and a considered response. Expect a slightly longer timeframe than the immediate sale experienced with a successful auction.
Should I have chosen a private sale instead of auction?
The decision to auction or sell privately depends on several factors. Auctions are generally favoured for properties with broad buyer appeal in areas with a strong auction culture, like Melbourne’s eastern suburbs. Private sales are often more suitable for properties appealing to a narrower demographic, or in areas like the Mornington or Bellarine Peninsulas where private sales are more culturally dominant. A softer market, with clearance rates below 60%, also increases the risk of a pass-in, making a private sale a potentially more prudent approach.
The real uncertainty — Buyer confidence and the negotiation window
The biggest uncertainty following a pass-in is gauging the true level of buyer interest and the willingness to increase offers. While the highest bidder has the first right to negotiate, other interested parties may also submit offers. The negotiation window is often relatively short, and vendors need to be prepared to make decisions quickly. It’s crucial to have a clear walk-away price established *before* auction day to avoid emotional decision-making.
Frequently asked questions
What’s a realistic timeframe to sell after a pass-in?
Most passed-in properties sell within a few weeks via private negotiation. However, properties requiring significant price negotiation can take 4–8 weeks to sell. Settlement in Victoria typically occurs 30–90 days post-contract signing, with 60 days being the most common timeframe for standard residential transactions.
Can I change my reserve price after the auction?
Yes, you can. However, lowering the reserve price signals to potential buyers that you are willing to negotiate, potentially impacting the final sale price. It’s essential to discuss this with your agent and carefully consider the market response before making a decision.
What if I don’t like any of the offers after the auction?
You are not obligated to accept any offer. Having a pre-determined walk-away price is crucial in this scenario. If no offers meet your expectations, you can withdraw the property from the market and reassess your strategy, potentially relisting at a later date.
Does a pass-in affect my property’s value?
Not necessarily. A pass-in simply indicates the market didn’t meet your reserve on that day. It doesn’t automatically devalue the property. A well-executed post-auction negotiation can still achieve a strong result. However, a prolonged period without a sale could signal to buyers that the property is overpriced.
Questions to ask your agent
- What is the agent’s strategy for generating renewed interest in the property following the pass-in?
- Based on feedback from the auction, what price range are we realistically likely to achieve in private negotiations?
- What is the agent’s assessment of the highest bidder’s financial position and their likelihood of securing finance?
This article contains general market information based on data current
as at April 2026. It does not constitute financial, legal, or real estate
advice specific to your property or circumstances. For an appraisal and
tailored advice, speak with a Fletchers agent in your area.