For many agents, the choice between auction and private treaty isn’t just a strategic decision – it’s a personal one.
Some build their careers around the theatre and intensity of auctions.
Others lean towards the control and flexibility of private treaty negotiations.
But in today’s market, the most effective agents are those who can move between both, selecting the right method for the situation rather than defaulting to what they know best.
Auction vs Private Treaty
At its core, a private treaty sale is a negotiated process.
A property is marketed with an asking price or price guide, and buyers submit offers individually, often with conditions such as finance or building inspections.
The agent then works between parties to negotiate a result, typically over a longer, more flexible timeframe.
An auction, by contrast, is a public and time-bound process.
Buyers compete in real time, usually on a set date, with unconditional bids that are visible to all participants.
The campaign is designed to build momentum and compress decision-making into a single moment, often removing price ceilings and driving competition.
While both methods aim to achieve the best possible outcome, they rely on very different dynamics. Private treaty leans on negotiation and flexibility.
Auction relies on urgency, transparency, and competitive tension. Understanding how each works is the first step in choosing the right approach for any given property.
Adam Fiteni, CEO of Harcourts Victoria, believes the industry’s biggest risk is becoming too attached to a single approach.
“In this industry, we cannot afford to be one-trick ponies,” Adam says.
“Because the moment we become too attached to a single method, we stop truly serving our clients.”
Why auctions create momentum
Auctions remain one of the most powerful sales methods when conditions align.
They create urgency, bring buyers together, and remove any artificial ceiling on price.
In strong or undersupplied markets, this competition can drive premium outcomes that are difficult to replicate through private negotiation.
“They create urgency. They bring buyers together in a competitive environment. They remove price ceilings and allow the market to speak in real time,” Adam explains.
Transparency is another key advantage. Buyers can clearly see where they stand, while sellers gain confidence from watching the process unfold in front of them.
But auctions are rarely just about the final day.
The real impact comes from the campaign itself, including the weeks of build-up, enquiry, and emotional engagement that lead to a concentrated moment of decision.
“When done well, it’s not just a method of sale, it’s a full experience,” Adam says.
Where auctions can fall short
Despite their strengths, auctions rely heavily on the right conditions.
They require depth of buyer interest, confidence in the market, and strong execution from the agent.
Without those elements, the process can struggle to deliver.
“If those elements aren’t there, the process can fall short,” Adam says.
In thinner markets or with more specialised properties, the lack of competition can limit the effectiveness of an auction campaign, particularly if buyers are hesitant or uncertain.
The control of private treaty
Private treaty offers a different type of advantage – control.
It allows for flexible negotiation, accommodates conditional buyers, and gives purchasers more time to make decisions.
This can be particularly valuable in softer markets or when dealing with niche properties that appeal to a smaller pool.
“In certain markets, private treaty can provide a more measured and strategic path to a result,” Adam explains.
It also broadens the buyer pool by allowing those who require finance or other conditions to participate, rather than excluding them upfront.
The trade-offs of negotiation
However, without the competitive tension of an auction environment, private treaty can sometimes struggle to reach a property’s full potential.
Buyers may test pricing, negotiations can drag, and campaigns can lose momentum if not carefully managed.
“Without the competitive tension of an auction, there can be a tendency for offers to sit below true market value,” Adam says.
“And without strong agent guidance, properties can linger on the market longer than they should.”
Choosing the right method
For Adam, the difference between average and high-performing agents comes down to clarity.
“It’s easy to default to what we’re comfortable with,” he says.
“But the best agents don’t operate from comfort. They operate from clarity.”
That clarity comes from assessing four key factors:
- the property itself
- current market conditions
- the seller’s motivation and expectations
- the depth and behaviour of the buyer pool
Only once those elements are understood can the right method of sale be determined.
“Our job is not to decide the process,” Adam says.
“Our job is to align with the process that delivers the best possible outcome.”
A tool, not a preference
Ultimately, both auctions and private treaty are simply tools.
Each has strengths. Each has limitations. And neither is inherently better than the other.
What matters is how and when they are used.
“I’ll always have a passion for auctions,” Adam says.
“But the best outcome doesn’t come from forcing a process, it comes from aligning with the right one.”