Private sale involves negotiating directly with buyers, offering flexibility in price and terms, and is becoming increasingly competitive with auction, particularly as clearance rates hover in the low-to-mid 60s (Cotality, March 2026). While auctions provide a definitive timeframe, the current market sees approximately 35–40% of properties passed in, often leading to a private negotiation period anyway. For many vendors, especially those with properties appealing to a narrower buyer base or on the Mornington or Bellarine Peninsulas, a private sale strategy can reduce stress and offer greater control.
In Melbourne’s current market, the choice between auction and private sale isn’t simply about stress levels; it’s about aligning your property and circumstances with buyer behaviour and market conditions. While auction remains a powerful tool in the eastern suburbs and inner/middle-ring Melbourne, the rising number of passed-in properties (35–40% as at early 2026) means a private sale strategy is a viable, and often sensible, alternative for many vendors.
When is private sale the better option?
Private sale is generally favoured when a property appeals to a narrower buyer demographic, or when the market is softer with pass-in risks increasing (REIV). It’s culturally dominant on the Mornington and Bellarine Peninsulas, and often preferred for properties priced above $3–4 million where the buyer pool is smaller. Sellers who desire flexibility to negotiate on terms, not just price, or who have interstate/overseas buyers, also benefit from a private sale approach.
How does the private sale process work in Victoria?
Unlike auction, private sale involves listing your property with a price guide and negotiating offers directly with potential buyers. Open for inspections are still crucial, but are less time-bound than an auction campaign. Your agent will present all offers to you, and you retain control over accepting, rejecting, or counter-offering. Settlement typically occurs 30–90 days post-contract signing, consistent with auction sales (Cotality, March 2026).
What happens if a property passes in at auction?
With clearance rates in the low-to-mid 60s (Cotality, March 2026), a significant proportion of Melbourne properties don’t sell under the hammer. Under CAV rules, the highest bidder gains the first right to negotiate with the vendor. However, vendors should be prepared for buyers to anchor their offers below the reserve price, recognising the vendor’s weakened position. Establishing a walk-away price *before* auction day is crucial.
The clearance rate gap
The gap between auction listing volume and actual sales is widening. While auction remains a popular method, the increasing number of passed-in properties demonstrates that it’s not a guaranteed outcome. This creates uncertainty for vendors, as a passed-in property requires a shift in strategy and a willingness to negotiate privately, potentially at a price below initial expectations. This is a reality vendors need to acknowledge.
Frequently asked questions
Will a private sale get me a lower price than auction?
Not necessarily. In a softer market, a well-executed private sale campaign can achieve a comparable price to a passed-in auction, avoiding the stress of a public auction and potential disappointment. The key is accurate pricing and a skilled agent who can navigate negotiations effectively.
How long does a private sale campaign typically take?
For well-priced properties, a private sale campaign can result in a sale within 1–2 weeks. However, properties requiring price negotiation typically take 4–8 weeks to sell. This is comparable to the time it takes to sell a passed-in property via private negotiation (Cotality, March 2026).
What if I receive multiple offers during a private sale?
Your agent will present all offers to you, outlining the key terms and conditions. You can then choose to accept the best offer, reject all offers, or ask buyers to submit their ‘best and final’ offers, creating a competitive environment.
Is private sale suitable for investment properties?
Yes, particularly tenanted properties where coordinating inspections can be complex. Private sale offers greater flexibility in managing access and negotiating terms with the tenant, potentially attracting a wider range of investors.
Questions to ask your agent
- Based on recent sales of comparable properties, what is a realistic price range for my property in the current market?
- What is your strategy for attracting qualified buyers and generating interest in my property through a private sale campaign?
- Can you provide examples of successful private sale negotiations you’ve conducted in this area, and the outcomes achieved?
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.