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 away from the public eye, offering a level of discretion not found at auction. This allows vendors to negotiate flexibility on settlement dates and deposit amounts alongside the sale price.
Managing multiple offers
Buyers may submit offers at any stage of the campaign. The vendor holds the power to counter-offer, which can be used to create competition between interested parties and drive the price upward.
When private sale is the strategic choice
This method is favoured for properties with a narrower buyer demographic or those priced above $3–4 million where the buyer pool is smaller. It is also the culturally dominant approach on the Mornington Peninsula and Bellarine Peninsula.
Price guides and regulatory compliance
Agents are prohibited from advertising a property below the reserve or the estimated selling price. However, price guides set 10–15% below the eventual sale price remain common in inner and middle-ring Melbourne suburbs.
The anchor effect
In a softer market where clearance rates are in the low-to-mid 60%, buyers often anchor their offers below the reserve price. They frequently operate on the assumption that the vendor’s position is weaker than the agent’s framing suggests.
| Factor | Private Sale Preferred | Auction Preferred |
|---|---|---|
| Buyer Pool | Narrow or high-value ($3M+) | Broad appeal |
| Market Condition | Softer (Clearance <60%) | Strong (Clearance >65%) |
| Geography | Mornington/Bellarine Peninsulas | Inner/Middle-ring Eastern suburbs |
| Terms | Flexible settlement/deposits | Unconditional sale |
Frequently asked questions
What is the difference between a private sale and an auction?
Private sales involve flexible negotiations on price and terms with a three-day buyer cooling-off period. Auctions provide a transparent, unconditional sale by a specific date. Private sales are often better for properties with narrow buyer pools or those in regional lifestyle areas like the Bellarine Peninsula.
Does a buyer have a cooling-off period in a private sale?
Yes, in Victoria, a three-day cooling-off period applies to buyers after the contract is signed in a private sale. This is a key distinction from auction sales, where the buyer waives the right to a cooling-off period upon purchase.
What happens if a property passes in at auction?
Approximately 35–40% of Melbourne properties do not sell on auction day when clearance rates are in the low-to-mid 60%. These properties typically move to private negotiation, with the highest bidder having the legal right to negotiate first under CAV rules.
Why use a private sale for properties over $3 million?
Properties priced above $3–4 million generally have a much smaller pool of qualified buyers. A private sale allows the vendor more time to find the right purchaser and provides the flexibility to negotiate complex terms that high-net-worth buyers often require.
How do agents set price guides for private sales?
Agents must ensure the advertised guide does not fall below the reserve or the estimated selling price. In practice, guides are often set 10–15% below the final sale price, a trend common in Melbourne’s inner and middle-ring suburbs.
Questions to ask your agent
- Based on the current buyer pool for my price bracket, is the risk of a pass-in high enough to justify a private sale from the start?
- How will you manage competing offers to ensure we don’t accidentally cap the price too early in the campaign?
- If we set the price guide 10–15% below the expected result, how will you manage buyer expectations to ensure offers still reach the reserve?
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.