A property ‘passing in’ at auction means it didn’t reach the reserve price – the minimum amount the seller is willing to accept – during the auction process. As of December 2025, this is a relatively common occurrence in Melbourne, particularly as market conditions stabilise.
In Melbourne, when a property passes in, negotiations immediately begin with the highest bidder. The auctioneer, acting on the seller’s instructions, will typically engage with this bidder and any other interested parties who registered to bid. This post-auction negotiation period can continue for days, even weeks. Currently in Melbourne, it’s common for agents to have several interested parties identified *before* the auction, providing a strong base for post-auction offers. In the Eastern Suburbs, where family homes near schools are in high demand, we often see multiple parties actively negotiating. The seller can accept an offer, continue negotiating, or even choose to withdraw the property from the market. It’s important to remember that passing in doesn’t mean the sale has failed; it simply changes the method of sale. Fletchers’ agents utilise our extensive network and client update technology to facilitate these post-auction discussions effectively. Typical marketing costs of $3,000 – $8,000 are still applicable, even if a sale is negotiated post-auction.
Passing in provides a second opportunity to secure a sale, allowing for a more considered negotiation process following the transparency of the auction campaign.