Seller guide · 6 minute read
Auction or private treaty: which suits your home?
How each method works in NSW, the homes each one suits, and the costs of both.
Updated 30 Aug 2026
In Ellery Park, many houses sell at auction or just before it, while units and townhouses are more often sold by private treaty. Neither method is always better: the right one depends on your home, your buyers and your timing.
How an auction works
Your home is marketed for a fixed period, usually four weeks, with a price guide. On auction day, registered bidders bid publicly. If bidding passes your reserve (the lowest price you’ll accept, which only you and your agent know), the highest bidder buys the home on the spot.
The contract is unconditional. In NSW there’s no cooling-off period at auction, so the buyer can’t walk away.
If bidding doesn’t reach your reserve, the home is “passed in” and your agent negotiates with the highest bidder, and anyone else interested, from there.
Auction suits
- Homes with strong, competing demand, like Federation semis and terraces near the station
- Homes that are hard to price because there are few close comparisons
- Sellers who want a fixed date and an unconditional sale
How private treaty works
Your home is listed with a price guide and buyers make offers privately. You can accept, counter or wait. There’s no fixed end date.
Once contracts are exchanged, the buyer has a five-business-day cooling-off period, unless they waive it with a solicitor’s certificate.
Private treaty suits
- Units and townhouses, where there are fewer buyers competing at once
- Sellers who need flexibility on settlement, such as when buying elsewhere
- Larger or unusual homes where a quieter, targeted campaign makes sense
The costs
| Auction | Private treaty | |
|---|---|---|
| Commission | Same | Same |
| Marketing | Usually a fixed four-week campaign | Can be shorter or staged |
| Auctioneer’s fee | Yes | No |
| Cooling-off for the buyer | None | Five business days |
Sold before auction
Sometimes a buyer offers before auction day. Your agent should test that offer with every other interested buyer before you decide. An early offer is often a buyer trying to avoid competition, but sometimes it’s the best price you’ll get. The weekly reports should tell you which.
Our approach
We’ll recommend a method at your appraisal and explain why, with sales of similar homes sold each way. If private treaty is the better choice for your home, we’ll say so, even though auction campaigns are usually larger.