Neither method is better for every home. Auction tends to suit homes that several buyers will compete for when demand is strong.

A private sale, where your agent advertises a price and negotiates with buyers, is the more common choice. Just over 30 per cent of new listings nationally went to auction in June 2026, according to Cotality.

On price, the difference is small. Once failed auctions are counted, the average gain from choosing auction was about 0.3 per cent, according to UNSW's summary of a 2026 study of more than 480,000 sales in NSW and Victoria.

If an agent has suggested an auction and you're not sure it's right for you, the choice depends on your home, your local market, how quickly you need to sell and how you'd handle an auction that doesn't sell.

Rules differ by state too. In Victoria, for example, your agent must now publish your reserve price at least 7 days before an auction.

Before you agree to a method, ask each agent you're considering how their auctions and private sales have gone in your suburb, and what each would cost you.

What's the difference that matters?

The biggest difference is the contract. An auction buyer signs on the day, usually with no conditions and no cooling-off period (the few days a buyer may have to pull out after signing). A private sale buyer can ask for conditions and, in most states, gets a cooling-off period.

At auction, buyers bid on a set day, and the highest bid at or above your reserve price (the minimum you set for the auction) buys the home.

The deposit, usually 10 per cent, is paid on the day, according to the NSW, Victorian, SA and WA governments. Because there are usually no conditions to fall back on, auction buyers need their finance sorted before they bid, and a sale on the day is firm.

In a private sale (also called private treaty), your agent advertises the home and negotiates offers, which can carry conditions such as finance approval or a building inspection. Our guide to what a private treaty sale is explains how one runs.

Which method suits your home?

Auction is more likely to suit a home that draws several competing buyers. A private sale is more likely to suit a seller who wants time to weigh offers, or who can't risk an auction that doesn't sell.

When an auction may suit you

• Your home is in a sought-after suburb, has a unique character or needs exposure to find buyers. WA Consumer Protection says auction may get the highest price for this kind of home.
• Your home is unusual or hard to price. Consumer group CHOICE's 2019 selling guide says competitive bidding can suit homes like these. But UNSW's summary of the 2026 study found that sellers of homes that are hard to compare with their neighbours are more prone to setting the reserve too high, one reason auctions fail.
• Demand is strong where you're selling, which Cotality says is when sellers favour auction.
• You want a set date, which CHOICE says encourages buyers to act quickly, and you can cope if the home doesn't sell on the day.

When a private sale may suit you

• You'd like time to consider each offer, rather than decide on the day.
• Your likely buyers need finance approval or a building inspection before they commit, which auction contracts usually don't allow.
• You can't afford an auction that fails. "If failing an auction is not an option for the seller, they should consider selling via private treaty or lowering their reserve price at the auction," said Associate Professor Kristle Cortés of UNSW, one of the authors of the study below.

How common are auctions where you live?

Auctions are common in Sydney and Melbourne and rare in Perth and Tasmania. In the week to 18 October 2026, Cotality recorded 574 auctions in Sydney and 500 in Melbourne, against 13 in Perth and one in Tasmania.

In Melbourne, that's down from 703 the week before, a drop Cotality said coincided with Victoria's new reserve price rules. A year earlier, Melbourne held 1,142 auctions.

Nationally, the share of new listings going to auction in June 2026 sat a little above its long-term average of about 28 per cent. If you're selling in Brisbane or Adelaide, Cotality describes both as capitals where private sales dominate.

A clearance rate is the share of reported auction results that ended in a sale, including sales agreed before or after auction day. An auction that's passed in (the bidding stopped short of a price the seller would accept) and doesn't sell afterwards counts as not sold, and so does one that's withdrawn.

So a rate near 50 per cent doesn't mean half the homes sold under the hammer.

In the week to 18 October 2026, the capital-city clearance rate was 51.2 per cent, from 31.5 per cent in Brisbane to 65.9 per cent in Canberra. A year earlier, the capital-city rate was 67.3 per cent.

The latest week's figures are preliminary, based on the results reported so far, and they can change when the rest come in.

Cotality publishes clearance rates every week, and our guide to using clearance rates explains how to read them for your suburb.

Does auction get a higher price?

On average, a successful auction gets a slightly higher price, but a failed one costs the seller more than a successful one gains. That's the finding of a 2026 study of more than 480,000 home sales in NSW and Victoria from 2007 to 2019, published in the Review of Finance.

According to UNSW's summary of the study, homes that sold at auction got about 0.7 per cent more than comparable private sales. Homes that failed at auction later sold for about 1.3 per cent less. Allowing for the chance an auction fails, the average gain from choosing auction was about 0.3 per cent.

As an example, if a comparable private sale would get $800,000, a successful auction's 0.7 per cent is about $5,600, a failed auction's 1.3 per cent is about $10,400, and the 0.3 per cent average gain is about $2,400, before any selling costs.

These are averages from past sales, not a forecast for your home, but they're worth weighing against the auction costs below.

Older studies were mixed. Some found an auction premium, while a 2011 study of Sydney and Christchurch sales found no significant difference once it allowed for which homes were chosen for auction. If an agent quotes a premium, it's worth asking where it comes from and how old it is.

As for speed, we couldn't find an independent comparison of the two methods, only figures from an agency group.

Does it cost more to sell at auction?

It can. Holding the auction, its advertising and the auctioneer's fees can make an auction cost more than a private sale, says WA Consumer Protection. Commission is negotiated with your agent, whichever method you choose.

Once an auctioneer is booked, the fee may be payable even if you sell before the day. In Victoria, you can negotiate "no sale, no fee", where you pay no commission or outgoings unless the agent sells, says Consumer Affairs Victoria.

Outside Victoria, your agency agreement says what you pay if the home doesn't sell. You'll need a conveyancer either way (see conveyancer costs), and our guide to the cost of selling a house covers the rest of the bill.

What happens if your home is passed in?

If bidding doesn't reach your reserve, or another price you're willing to accept, the home is "passed in", and your agent can negotiate with bidders instead. In Victoria, if it's passed in below the reserve, you negotiate first with the highest bidder.

If it doesn't sell, you can keep negotiating, switch to a private sale or try again later. UNSW's summary of the 2026 study says the discount after a failed auction faded for homes sold more than six months later.

If you don't have to sell urgently, Consumer Affairs Victoria suggests you consider taking your home off the market and relisting later, because a long time on the market can reduce the likely selling price.

Why do agents recommend auction?

The Queensland Government says your agent will recommend a method based on your type of home, where it is, how the market is behaving and how quickly you need to sell. If an agent recommends auction for every home, whatever the market, ask them why.

To see whether it suits your home, ask:

• How did your auctions and private sales in this suburb go over the past year?
• How many homes like mine go to auction here, and what's the local clearance rate?
• What will each method cost me, including advertising and any auctioneer?
• What do I pay if the home is passed in, or sells before the auction?
• How will you set the price guide (the price range in the ads), or, in Victoria, what reserve will you recommend? Queensland auctions can't have a price guide.
• Will you make vendor bids (bids on my behalf), and how many?
• If it's passed in, how will you handle negotiations and what happens next?

Asking two or three agents the same questions shows you whose plan fits your home. Our guide to the questions to ask when you interview an agent covers the rest, and you can compare local agents on OpenAgent.

What changes in your state?

The biggest differences are the rules for bidding at auction, and whether a buyer gets a cooling-off period on a private sale. These are the main rules as at 20 October 2026. Each has exceptions, so ask your conveyancer or lawyer which apply to your sale.

Auction rules

Fake bids are banned, but the conditions of sale (the rules for that auction) can usually allow a bid on your behalf, within limits. These are called vendor bids, and each state limits them differently.

Victoria. For residential auctions run by an agent from 16 October 2026, your agent must publish your reserve price, as a single dollar figure, in the advertising for at least 7 days before the auction. If it isn't, the auction can't go ahead.

Changing the reserve, up or down, restarts the 7 days, and you can still accept a lower bid on the day. An offer accepted before the auction is a private sale, so it doesn't need the 7 days.

The rule also covers "fixed-date sales". If your agent runs a campaign where offers must be in by a set date and time, such as expressions of interest or a tender, the reserve must be published for 7 days before that date. Consumer Affairs Victoria sets out the rules for agents.

Queensland. It's illegal for your agent to give buyers a price guide for an auction. For most sales, your seller disclosure statement and certificates must be given to bidders registered before the auction starts, with a separate process for later registrants.

If they aren't, the buyer may be able to end the contract before settlement (the day ownership passes to the buyer).

South Australia. Your reserve can't be set above 110 per cent of the selling price you told your agent you'd accept, as recorded in your sales agency agreement. For an auction, the agreement can't be changed to raise that price.

NSW. NSW Fair Trading says changes expected towards the end of 2026 will require a price or price range in agents' ads (signs at the property aside). The same changes will also stop agents advertising a price below the highest bid a registered bidder made at a pass-in.

Cooling-off periods

A cooling-off period lets a buyer pull out of a contract within a set time after signing, usually for a small payment to you. No buyer gets one at auction in any state or the ACT, and the NT Government says the same applies in the territory.

In NSW, SA and the ACT, a buyer can give up the cooling-off with a certificate from their own lawyer. Some buyers don't get one, such as companies in some states.

Other ways to sell

• Expressions of interest: some agents set a closing date for offers. In Victoria, that makes it a fixed-date sale under the reserve rule above.
• Tender: buyers submit offers by a closing date, and you can accept one or reject them all.
• Off-market: the home is offered to buyers without public advertising. See off-market sales.
• Online auction: bidding happens online instead of in person. See how online auctions work.
• Selling without an agent: you run the sale yourself and pay no commission. See the pros and cons of selling your home yourself.

Our guide to selling your property covers each step of the sale. For auction day itself, see how a property auction works and how to set a reserve price.

Where these figures come from

• How common auctions are, and clearance rates: Cotality's Monthly Housing Chart Pack (July 2026) and its Property Market Indicator Summary for the week ending 18 October 2026 (preliminary results).
• Price: Cortés, Singh, Solomon and Strahan, "How perception affects house prices: evidence from failed auctions", Review of Finance (2026), as summarised by UNSW BusinessThink (May 2026). The older studies include Frino, Lepone, Mollica and Vassallo (2010), Lusht (1996) and Frino, Peat and Wright, Accounting and Finance (2011).
• Costs: published auctioneer fees from our auctioneer cost guide (October 2026), WA Consumer Protection and Consumer Affairs Victoria.
• State rules: each state's and territory's legislation, approved contract or consumer regulator, checked on 20 October 2026. WA's vendor bid rule and the NT's position at auction are from their governments' consumer pages.