If you are selling in Canberra, there are two main options to choose from: auction or private treaty. Both have their pros and cons, and the best option for you depends on market conditions, your property, and your risk appetite. Let’s break it down to help you decide which method will get you the best bang for your bricks!
Advantages of Selling by Auction
✅ Sense of urgency – Buyers know they need to bid or risk losing the property. This can fuel competition and lead to a premium sale price.
✅ Set timeline – having an “end date” can give you more certainty around planning your next move.
✅ Unconditional sale – If the property sells under the hammer, there’s no cooling-off period or finance clauses—buyers sign and pay their deposit on the spot.
Disadvantages of Selling by Auction
❌ Passing in – If bidding doesn’t reach your reserve price, you may not sell on the day which can be a big let down.
❌ Stress factor – Auctions can be nerve-wracking, and not every seller is comfortable with the high-pressure nature of the process.
❌ Turn off – lots of buyers hate auctions, so may be less likely to engage with your property using this strategy
When an Auction Works Well
High demand & competitive market – When buyers are fighting over homes, the competition pushes prices up.
Unique or highly desirable property – If your home is special or in a sought-after location, an auction could spark a bidding war.
Tight deadline – If you need to sell quickly (e.g., you’ve already bought another home), an auction’s set date can work in your favour.
When an Auction Works Poorly
Buyer uncertainty – If the market is soft or buyers are nervous, they may not bid competitively.
Overpriced expectations – If your price expectations are too high, buyers may walk away, leaving you with no bidders.
Less ‘in-demand’ properties – If your home isn’t what most buyers are looking for, it may struggle to generate competition.
Advantages of Selling by Private Treaty
✅ More traditional – You set the asking price and negotiate on your terms.
✅ Less pressure – No 3-4 week build up or last-minute decisions—buyers can take their time.
✅ Wider buyer appeal – Some buyers don’t like the pressure of auctions, and private treaty gives them a chance to negotiate at their own pace.
Disadvantages of Selling by Private Treaty
❌ Slower process – Your home could sit on the market for weeks or months, waiting for the right buyer, and you risk "becoming stale".
❌ Price negotiation – Buyers often lowball offers, and negotiations can drag on.
❌ Sale can fall through – Unlike auctions, private treaty sales are subject to final finance approval which can take 2-3 weeks, meaning deals can collapse before contracts are signed.
When Private Treaty Works Well
Buyers’ market – If there are more properties for sale than buyers, this approach allows flexibility and patience.
Standard homes – If your home is comparable to others on the market, buyers will expect a fixed price.
Less pressure for sellers – If you prefer a less stressful process, private treaty gives you breathing space.
When Private Treaty Works Poorly
Overpricing – If your price is too high, buyers may not even enquire.
Lack of urgency – Without a deadline, buyers can take their time, potentially delaying your sale.
Hot market conditions – In a booming market, auctions often fetch higher prices because of competition.
Which One is Right for You?
Ultimately, the best method depends on your personal circumstances and the market at the time. If Canberra is experiencing high demand and short supply, an auction could get you top dollar. If buyers are hesitant and properties are sitting on the market, private treaty may give you the best chance of securing a sale.
Before making a decision, chat with one of our agents who understands the Canberra market. Whether you go for the rush of the auction or the steady approach of private treaty, the right strategy can help you get the best result for your home.
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