Online auctions are unconditional sales processes where a reserve price is set before bidding begins, typically following a four-week marketing campaign. While effective for broad-appeal properties in Melbourne’s eastern suburbs, the current Melbourne clearance rate of 59.1% (CoreLogic/Cotality/Domain/PropTrack/REIV/RBA/ATO) indicates a higher risk of properties passing in compared to 2025.
Choosing between an auction and a private sale requires balancing the need for a definite sale date against current market sentiment. With the latest Melbourne clearance rate dipping below 60% for the first time in 2026, the risk of a property not selling on the day has increased.
How the auction process works
A typical campaign runs for four weeks with two open for inspections per week. Vendors and agents must agree on a reserve price before bidding opens to comply with Victorian law. Auctioneer fees generally range from $400 to $1,000, often included in the marketing package (CoreLogic/Cotality/Domain/PropTrack/REIV/RBA/ATO).
When to choose an auction
Auctions are most effective for properties with broad buyer appeal in areas with strong auction cultures, such as Melbourne’s eastern suburbs. They suit vendors who require a transparent, unconditional sale by a specific date or properties with specific features that make precise pricing difficult (CoreLogic/Cotality/Domain/PropTrack/REIV/RBA/ATO).
When a private sale is more effective
Private sales are the culturally dominant method on the Mornington Peninsula and Bellarine Peninsula. This approach is preferred for tenanted properties, homes priced above $3–4 million with smaller buyer pools, or when the seller needs flexibility to negotiate terms and dates (CoreLogic/Cotality/Domain/PropTrack/REIV/RBA/ATO).
The pass-in risk
Approximately 35–40% of Melbourne properties currently go unsold on auction day (CoreLogic/Cotality/Domain/PropTrack/REIV/RBA/ATO). When a property passes in, the highest bidder has the legal right to negotiate first under CAV rules, though buyers often anchor their offers below the reserve price.
| Metric (Houses) | Week Ending 11 April 2026 | Previous Week | Same Week 2025 |
|---|---|---|---|
| Clearance Rate | 59.1% | 61.4% | 66.8% |
| Median Price | $937,500 | $1,021,000 | $1,001,000 |
Frequently asked questions
What happens if my property doesn’t sell at auction?
If bidding does not reach the reserve, the property is “passed in.” Under CAV rules, the highest bidder is granted the first right to negotiate privately with the vendor. Most passed-in properties sell within a few weeks through these private negotiations (CoreLogic/Cotality/Domain/PropTrack/REIV/RBA/ATO).
Are auction sales unconditional in Victoria?
Yes. Auction sales are unconditional, meaning there is no cooling-off period. The contract is signed on the day of the auction, and the buyer typically pays a 10% deposit immediately. Settlement generally occurs between 30 and 90 days post-auction (CoreLogic/Cotality/Domain/PropTrack/REIV/RBA/ATO).
How long is a typical auction campaign?
A standard auction campaign lasts four weeks from the initial listing to the auction date. This period typically includes two open for inspections per week to build momentum and identify potential bidders before the final sale date (CoreLogic/Cotality/Domain/PropTrack/REIV/RBA/ATO).
Why is private sale preferred on the Mornington Peninsula?
Private sales are culturally dominant on the Mornington and Bellarine Peninsulas. This method is often preferred because it allows for more flexibility in negotiating terms, which is better suited to the buyer demographics and property types common in these coastal regions (CoreLogic/Cotality/Domain/PropTrack/REIV/RBA/ATO).
Questions to ask your agent
- What is the current clearance rate specifically for my street or immediate pocket?
- What is the firm walk-away price we should establish before the auction day?
- If the property passes in, what is the immediate post-auction negotiation strategy for the highest bidder?
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.