Exploring Auction vs Private Sale for Optimal Results in Melbourne's Bayside Market

One of the most common questions we are asked by homeowners throughout Chelsea, Patterson Lakes, Bonbeach, Edithvale, Carrum and the surrounding bayside suburbs is whether they should sell their property by auction or private sale.

The truth is there is no one-size-fits-all answer.

Every property is different. Every seller has different goals. Every market cycle presents different opportunities.

While auctions can deliver exceptional results in the right circumstances, there are many situations where a well-executed private sale campaign can achieve an equal or even better outcome.

At Mitchell Torre Real Estate, our approach has always been simple: create strong buyer interest and then negotiate the very best result for our clients.

Understanding the differences between auction and private sale is the first step in choosing the strategy that best suits your property and circumstances.

Understanding Today's Bayside Property Market

Melbourne's bayside suburbs continue to attract a broad range of buyers, including first home buyers, growing families, downsizers, investors and prestige purchasers.

The appeal is easy to understand. Beautiful beaches, quality schools, lifestyle amenities, excellent transport links and a strong sense of community continue to make Chelsea, Patterson Lakes, Bonbeach, Edithvale and Carrum highly sought-after locations.

However, today's buyers are often more cautious than they were during previous market booms. Many require finance approval, building inspections or additional due diligence before committing to a purchase.

This makes choosing the right sales strategy more important than ever.

The goal is not simply to sell a property.

The goal is to expose your home to the largest possible pool of genuine buyers and create the conditions that lead to the strongest result.

How Auctions Work

An auction involves marketing a property over a fixed campaign period before buyers compete publicly on a designated auction day.

A reserve price is set by the seller, and if bidding reaches or exceeds that figure, the property is sold unconditionally to the highest bidder.

Once the hammer falls, the contract is signed immediately and there is generally no cooling-off period.

Benefits of Auction

• Creates urgency through a fixed sale date.

• Encourages competition between buyers.

• Provides a transparent bidding process.

• Results in an unconditional contract when sold.

• Can achieve outstanding results when multiple buyers are competing.

  
  

Challenges of Auction

• Success often depends on strong buyer competition.

• A lot of buyers are unwilling or unable to purchase unconditionally, hence not being included in the bidding competition.

• Higher upfront marketing costs are often required.

• Short time frame to secure best buyer.

  
  

Auctions can be extremely effective when demand is high and multiple buyers are likely to compete for the property.

How Private Sales Work

A private sale allows buyers to submit offers throughout the marketing campaign, with negotiations taking place between the buyer, seller and agent.

Properties are generally advertised with either an asking price or a price range, allowing buyers to assess affordability before making an offer.

Benefits of Private Sale

• Greater flexibility around terms and settlement dates.

• Broader buyer participation, ultimately leading to better overall results.

• Buyers can often purchase subject to finance or building inspections.

• Less pressure on buyers compared to a public auction environment.

• More opportunity for strategic negotiation.

  
  

Challenges of Private Sale

• Campaigns can sometimes take longer.

• Competition between buyers is private vs public (Not always a bad thing).

• Success relies heavily on skilled negotiation.

  
  

Private sales remain one of the most common methods of sale throughout Melbourne's bayside suburbs, can be particularly effective when targeting a broad buyer audience, and selling homes of unique proposition that will take skilled negotiation to obtain true value.

Comparing Auction and Private Sale

Factor	Auction	Private Sale
Sale Timeline	Fixed campaign and auction date	Flexible timeframe
Buyer Competition	Public bidding environment	Competition created through negotiation
Buyer Pool	Limited to unconditional buyers	Broader range of buyers
Flexibility	Limited once auction is scheduled	Greater flexibility around terms
Upfront Costs	Typically higher marketing investment	Often more flexible marketing options
Certainty	Unconditional once sold	Conditions may apply

Which Method Achieves the Best Price?

Many sellers assume auctions automatically achieve higher prices.

In reality, the strongest results are usually achieved when multiple buyers are competing for the same property — regardless of whether that competition occurs at auction or through private negotiations.

At Mitchell Torre Real Estate, we genuinely believe the only way to establish true market value is by giving every genuine buyer the opportunity to participate, not just those in a position to do so unconditionally.

This is one reason why we often favour private sale campaigns.

Auction campaigns naturally exclude some buyers who require finance approval, building inspections or additional conditions before committing.

Private sale campaigns can allow these buyers to remain in the process, creating a larger pool of competition and ultimately more opportunities for negotiation.

Every property should be assessed individually, but in many cases a broader buyer pool can lead to a stronger outcome.

When Auctions Work Best

Auctions may be the right strategy when:

• The property is in a tightly held location.

• Multiple buyers are already showing strong interest.

• Market conditions are particularly competitive.

• A fixed sale date is important.

• Buyers are likely to be comfortable purchasing unconditionally.

When these factors align, auctions can produce exceptional results.

When Private Sales Work Best

Private sales may be the better option when:

• You want to maximise the number of buyers able to participate.

• Finance buyers are likely to make up a large portion of the market.

• Flexibility around settlement terms is important.

• The property appeals to a niche buyer group.

• You prefer a more private sales process.

  
  

Many buyers are prepared to pay a premium price for the right property, and the right conditions, hence simply do not wish to bid publicly at auction.

Private sale campaigns allow these buyers to participate while still creating strong competition through skilled negotiation.

Our Approach

Rather than applying the same strategy to every property, we assess each home individually.

Factors we consider include:

• Current market conditions.

• Buyer demand.

• Property type and location.

• Seller circumstances and timeframes.

• Likely buyer demographics.

  
  

The objective is always the same: maximise competition and achieve the strongest possible result.

As we often say:

Marketing creates interest. Negotiation creates outcomes.

Frequently Asked Questions

Do homes sell for more at auction?

Not necessarily. The highest prices are generally achieved when multiple buyers are competing for the property. This can occur at auction or during a well-managed private sale campaign.

Can I accept an offer before auction?

Yes. Sellers can accept an offer prior to auction if they choose to do so.

What happens if a property passes in?

If bidding does not reach the reserve price, the property is passed in. The highest bidder is typically given the first opportunity to negotiate with the seller. Sometimes passing a home in, is a strategic position to ensure vendors achieve the best price the agent feels is availble in the market place.

Is auction or private sale better in Chelsea?

The answer depends on the property and current market conditions. Family homes with broad buyer appeal can perform well under either method, while some sellers with Beachfront, or Beahc access prefer private sale to maximise buyer participation.

Is auction or private sale better in Patterson Lakes?

Waterfront homes and unique lifestyle properties are often best suited to private sale, as value can differ greatly among buyers; hence, private negotiations will flush out the best result, versus each buyer's opinion of value guiding the final price. That said, all homes require an individual assessment. The best strategy depends on buyer demand, competition levels, and the target audience.

Thinking of Selling?

If you're considering selling your home and would like advice tailored specifically to your property, we'd be delighted to assist.

Our team can provide an obligation-free appraisal and discuss the sales strategy most likely to achieve the best possible outcome for your circumstances.

Contact Mitchell Torre Real Estate today to discuss your property and your goals.