Under Victorian law, a reserve price must be set before bidding opens. While you can effectively sell “without reserve” by setting the price at a nominal amount, this means the property will sell unconditionally to the highest bidder regardless of the final price. Selling without a reserve removes the vendor’s safety net. With the Melbourne
In a private sale, buyers submit offers independently at any time during the campaign. The vendor can accept, reject, or counter these offers to negotiate the best price and terms. This method is typically used for high-value properties over $3 million, tenanted homes, or listings on the Mornington and Bellarine Peninsulas. Private sale negotiations occur
A sunset clause is a contractual provision that allows either the buyer or vendor to terminate a contract if a specific condition—usually the registration of a plan of subdivision—is not met by a designated date. While common in off-the-plan sales, they are rarely found in standard established private sale contracts. In Victoria, sunset clauses primarily
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
A set price is a single figure used to either anchor an auction or establish a fixed sale price, while a price range provides a bracket to attract a broader buyer pool. In 2026, with Melbourne auction clearance rates hitting 59.1% (April 11, 2026), the choice depends on whether a property’s value is clearly defined
Auction buyers generally seek transparency and competitive environments in high-demand areas, while private sale buyers prioritize flexibility and are more common in luxury brackets or regional peninsulas. In 2026, auction buyers are increasingly likely to anchor offers below the reserve if a property passes in, coinciding with clearance rates dipping to 59.1% (CoreLogic/Cotality, April 2026).
Expressions of Interest (EOI) are more effective for prestige properties valued at $2M+, commercial assets, or when a vendor prioritises control over buyer selection and timing. This method is a strategic alternative to auctions when a property lacks the broad buyer appeal needed to secure a result in a market where clearance rates currently track
In Victoria, buyers in a private sale have a three-day cooling-off period after signing the contract. This window allows the buyer to withdraw from the purchase. This provision does not apply to properties purchased at auction. Private sales offer vendors and buyers more flexibility regarding deposits and settlement terms than auctions. In the current market,
The choice between Expressions of Interest (EOI) and auction depends on property value and location. Auctions are effective in the eastern suburbs for broad-appeal homes, whereas EOI is better for prestige properties over $2 million. With Melbourne clearance rates currently at 59.1% (CoreLogic/Cotality, Domain, PropTrack, REIV, RBA, and ATO), private sales are increasingly favoured when
The reserve price is the minimum amount a vendor is willing to accept, which must be set before bidding opens under Victorian law. If bidding reaches this figure, the property is “on the market” and sells unconditionally to the highest bidder. If the reserve is not met, the property is “passed in,” and the highest
