Part 6: “We Should Auction Your Property”

It’s a line many sellers hear – and it’s often delivered with a sense of urgency and certainty:
“We should take your home to auction.”

Here’s the truth: most homes are not auction properties.

Why Auction Isn’t Always the Answer

Let’s take an example:
You own a townhouse in a complex of four. One sold recently for around $800,000. If yours is going to market within six months, in similar condition, the price isn’t a mystery – so why remove the clarity by taking it to auction?

The answer often has more to do with the agent’s needs than yours.

💬 Reason #1: Auctions cut out a huge portion of buyers

Many people simply can’t bid at auction – at least, not to their true top number.

When we were young buyers in 2016, we asked our bank to give us full approval to bid at auction. The bank said we could go to $609,000. Auction day came, we bid with all our enthusiasm… and watched the price sail to $650,000. We missed it.

One week later, we bought another home for $710,000. Why the difference? The bank just needed a finance clause so they could do a formal valuation.

This is common. Many younger buyers, or those who need finance clauses, can pay more – but auctions shut them out.

💬 Reason #2: Auctions are a lead generator for agents

An auction campaign is a networking goldmine:

  • Agents at the front door, greeting every neighbour

  • Annoying phone calls to “invite” the local area

  • Loud, public activity to make them look busy and successful

The focus shifts from selling your home to getting their next listing.

💬 Reason #3: Auctions are training grounds for new agents

For an inexperienced agent, auction campaigns are easy:

  • Get the photos

  • Load the listing

  • Show up to opens and collect names

Come auction day, the auctioneer does the negotiation. The rookie agent gets a sale on their record without having to master pricing or negotiation.

💬 Reason #4: Avoiding the pricing conversation

We’ve covered this in earlier posts – some agents promise you a big number to win your listing, even if they know it’s unrealistic. The auction process lets them avoid a hard conversation about price, using “market feedback” to condition you down instead.

When Auction Does Work

We sell around two homes per year via auction – and it’s always for the right reasons:

  • The property is truly unique

  • There are no clear comparable sales to base a price on

  • The likely buyer pool doesn’t need finance clauses (think developers, downsizers with cash, or buyers with large equity)

Our last auction property was a once-in-a-century gem:

  • 98 years in the same family

  • Soaring ceilings, ornate moulded designs, north-facing

  • Last renovated in the 1960s, needing a full update

It was impossible to price – but perfect for auction. We carefully prepared the campaign, made sure buyers understood the process, provided all the information they needed, and communicated on their terms.

The result? Sold under the hammer for $100,000 over reserve – and well above the owner’s expectations.

The Bottom Line

Auction isn’t bad. But it’s not for every property. It works brilliantly in the right circumstances, with the right buyers, and with an agent who uses it strategically – not as a one-size-fits-all shortcut.

Want an agent who chooses the right method for your home, not just the one that’s easiest for them?

Call Kath Chown on 0458 912 906 – I’ll help you choose the approach that gives you the best possible result.

Stay tuned for Part 7 of “Why Did That Agent Say That?”, where we’ll unpack another sales tactic that could limit your buyer pool and your price.