For many years, I was an auction sceptic. My concern was never that auctions could not achieve strong results. It was that, in a hot property market, they were often unnecessary. When buyer demand is intense, serious competition can usually be generated immediately.
A good agent may be able to attract several offers, negotiate between the strongest buyers and achieve an exceptional result without waiting three or four weeks for an auction. In those conditions, forcing a property through an auction campaign can even be counterproductive.
Some buyers will not participate in an auction. Others need certainty and cannot wait several weeks to find out whether they have secured the property. Some may simply purchase another home while they are waiting.
When genuine competition already exists naturally, delaying the sale until auction day can lose buyers without necessarily improving the result. That was the principal reason I remained sceptical. However, the Perth property market has changed.
Buyers have considerably more choice, urgency has declined and sellers can no longer assume that multiple offers will appear simply because a property has been listed. In a hot market, competition happens naturally. In a weak or falling market, competition must be deliberately created. That is why my position on auctions has changed.
After selling more than 1,500 properties and conducting well over 100 auctions, I now believe a professionally managed live auction is the strongest method of sale in a weakening market. It gives the seller the best opportunity to attract every genuine buyer, force a concentrated effort from the agent, establish a firm deadline and bring competing buyers to a decision at the same time.
Perth property values remain historically high, and it would be inaccurate to suggest that the entire metropolitan market is already falling. REIWA’s latest data placed Perth’s median house sale price at $935,000 for the 12 months ending June 2026. However, the conditions confronting sellers have changed substantially.
The number of properties available for sale has risen sharply. For the week ending 5 July 2026, there were 6,184 properties listed for sale across Perth 68.3 per cent more than at the same time a year earlier. At the end of June, Perth listings had exceeded 6,000 for the first time at the end of a month since April 2023. REIWA attributed the increase to improving supply and a softening of buyer demand.
The change is also visible in negotiations. Three in every 10 Perth houses sold for less than their advertised price in June, compared with approximately one in 10 during the frenzied conditions of late 2025 and early 2026. The market is not behaving uniformly. Some properties and suburbs remain highly competitive, while others are experiencing fewer buyers, longer negotiations and greater pressure on prices.
That distinction is important. Auction is not necessary merely because it is fashionable or gives the agent something to promote on social media. It becomes valuable when competition can no longer be assumed.
In a genuinely hot market, buyers create their own urgency. They are concerned that prices will continue rising, that another suitable property may not become available and that waiting could leave them paying more later. Under those conditions, buyers act quickly.
A well-positioned private sale can attract several offers almost immediately. An experienced agent can identify the strongest buyers, create competition between them and negotiate a premium result within days. Waiting several weeks for an auction may add unnecessary delay.
A buyer who has already sold may urgently need another home. A purchaser’s finance approval may be approaching expiry. Some people are simply uncomfortable with auctions and may choose another property offering greater certainty. When demand is overwhelming, asking buyers to wait can give them time to find and purchase something else. This remains the basis of my auction scepticism.
An auction should not be recommended automatically in every market. In a hot market, it can be unnecessary and may even reduce the number of buyers who remain engaged until the end of the campaign.
A weakening market creates the opposite psychology. Buyers have more properties to choose from and less fear of missing out. They are more willing to wait, negotiate cautiously and see whether an owner becomes more flexible.
Instead of asking:
“What do I need to offer to secure this property?”
buyers begin asking:
“How little might the owner eventually accept?”
Under a normal private-sale campaign, interested buyers may inspect at different times and submit offers days or weeks apart. One buyer may make a cautious offer without knowing that another buyer is interested. Another buyer may remain silent, believing there is no urgency and that the property will still be available later. Although several buyers may have some interest, they never genuinely compete.
Auction changes that dynamic. It establishes a definite date and requires every interested buyer to make a decision within the same concentrated period. It turns a passive market into an active process.
The first advantage of auction occurs well before auction day. An auction property stands out from competing listings. Buyers searching online are often confronted with dozens of similar campaigns:
“Contact Agent.”
“Offers Invited.”
“Expressions of Interest.”
“Price on Application.”
“Suit Buyers Above.”
“Present All Offers.”
These listings can begin to look the same. More importantly, there is often no clear reason for a buyer to act today instead of waiting until next week.
An auction is different. It has a public date, a specific time and a defined decision point. The buyer knows the property is moving towards an outcome. They cannot safely assume it will remain available indefinitely. The deadline gives buyers a reason to save the property, attend the next inspection, request the contract, speak with their finance broker and make a decision.
A normal listing can gradually become part of the background. An auction campaign is far more difficult to ignore.
No selling method can create buyers who do not exist. What auction can do is give the agent the best possible opportunity to find every genuine buyer and bring them into the process at the same time. This includes buyers who are ready to purchase immediately and those still comparing properties, arranging finance or discussing the purchase with family.
An advertised asking price can unintentionally eliminate buyers before they inspect. Some buyers see a figure above their preferred range and do not enquire, even though the owner might ultimately consider a price they could afford. Other buyers assume the property will sell for considerably more than it does and also exclude themselves. An auction campaign allows buyers to inspect and assess the property before making those assumptions.
A properly managed live auction should also accommodate genuine buyers who cannot attend in person. Telephone bidding or bidding through an authorised representative can be arranged where necessary. Buyers can receive the contract early, complete their enquiries and understand the process before auction day. The purpose is to remove genuine barriers without surrendering control of the auction to an anonymous online platform.
One of the greatest weaknesses of a normal private sale is that the campaign can drift. The property is launched, inspections are conducted and the agent waits for an offer. When an acceptable offer does not arrive, another inspection is scheduled for the following weekend. Activity may continue, but there is not always urgency or accountability.
An auction changes that. It forces a concentrated sales effort over a clearly defined period. The agent cannot simply upload the property and hope the right buyer eventually appears. The existing buyer database must be contacted. Buyers who inspected similar homes must be approached. Every enquiry must be followed up and qualified. Contracts and supporting documents must be distributed. Finance positions must be discussed. Repeat inspections must be arranged, and buyer feedback must be collected and reported honestly to the owner.
Every home open has a purpose because every home open moves the campaign closer to auction day. The auction date also gives the wider agency a reason to focus on the property. Other salespeople can search their databases, contact suitable buyers and introduce people who may otherwise have missed the campaign.
The auction result is not determined merely by who happens to arrive on the day. It is the conclusion of several weeks of deliberate buyer identification, education and follow-up.
In a traditional private sale, the negotiation is generally buyer against seller. The buyer knows the asking price and attempts to negotiate below it. The seller tries to defend the advertised figure or persuade the buyer to improve. The buyer’s objective is often to establish the lowest amount the owner will accept.
Auction changes the negotiation from buyer against seller to buyer against buyer. That is the critical difference. The seller is no longer trying to persuade one purchaser to pay more. Each buyer must decide whether they are willing to exceed the competing bid. Competition is not limited to auction day. The auction deadline can create competition throughout the campaign.
When one buyer submits a pre-auction offer, the agent has a genuine reason to contact every other interested party and explain that the property may sell before the scheduled auction. Buyers who were hesitating must decide whether to act.
Without an auction date, the same purchaser may submit a cautious private offer and negotiate only against the owner. Other interested buyers may remain silent because nothing requires them to reveal themselves. Auction concentrates the available demand and makes it visible. Even two genuine buyers can be enough to produce a stronger result than either buyer might have offered privately.
Although auctions have become increasingly available through online platforms, I do not believe an online auction provides sellers with the same advantage as a professionally conducted live auction. In fact, online auctions can undermine some of the very benefits an auction is intended to create.
A live auction gives the auctioneer control over the pace, momentum and psychology of the negotiation. The auctioneer can see the bidders, read their reactions and recognise hesitation. They can alter the bidding increments, challenge a buyer, maintain momentum and encourage a final decision.
An online auction transfers too much of that control to the buyers. A bidder sitting anonymously behind a screen can pause, delay and make very small incremental bids. They can attempt to test the other buyer’s position without experiencing the pressure of making a visible decision in front of genuine competitors. They may use the platform to slow the auction, interrupt its momentum or try to “game” the process rather than respond naturally to the competition.
A successful auction is not simply a series of numbers appearing on a screen. It is a live negotiation conducted by an experienced auctioneer. Online auctions can also discourage buyers who are already uncertain about the auction process.
Some buyers worry they may be bidding against an anonymous person whose commitment they cannot assess. Others fear they could be encouraged to continue bidding without being able to see who they are competing against. Even where the process is properly regulated, the buyer’s perception matters. When buyers feel they might be “played”, some will refuse to register or participate.
That is a significant weakness because an auction campaign should bring every genuine buyer into the process, not provide another reason for them to withdraw.
A live, in-person auction is more transparent. Buyers can see the competition. They can hear each bid, observe the auctioneer and understand how the auction is progressing. The competition feels genuine because it is visible. That visibility creates both confidence and pressure. Telephone bidding can still be arranged for a genuine buyer who cannot attend. However, it should support the live auction rather than replace it.
In my view, the strongest format remains a professionally conducted, in-person auction where the auctioneer controls the process, buyers can see the competition and no one can hide behind a screen while attempting to manipulate the pace of bidding.
Technology should make it easier for a genuine buyer to participate when necessary. It should not transfer control of the auction away from the auctioneer.
Speed becomes critically important when a market is weakening. The traditional strategy of beginning with an ambitious asking price and gradually reducing it is dangerous in a changing market. It assumes the market will remain still while the owner adjusts, which may not.
A property can be launched above market value, remain unsold for several weeks and then have its price reduced. By the time that reduction occurs, competing properties may also have reduced. More properties may have entered the market and buyer confidence may have weakened further.
The owner is not catching the market; they are chasing it down. Price reductions can also signal weakness. Buyers begin wondering how much further the owner may reduce. Instead of submitting an offer, they wait for the next adjustment. The property becomes stale, online engagement declines and the strongest buyers move on to newer listings.
Auction compresses the price-discovery process into a much shorter period. The agent gathers evidence through enquiry levels, inspection numbers, repeat visits, buyer feedback, pre-auction offers, registrations and bidding. Auction day then provides a clear test of the market. If the property sells, its price has been established through competition.
If bidding does not reach the reserve, the owner still receives valuable evidence. There is a highest bidder, a group of identified interested parties and a much clearer understanding of where the market sees value. The property can then be negotiated or priced correctly while the campaign remains fresh. Auction finds the market price faster. That does not automatically mean it finds a lower price. It means the owner discovers the genuine market position before spending months chasing a market that may continue moving against them.
A private sale can quietly fail for 90 days. An auction provides a clear answer in approximately three to four weeks.
Expressions of Interest, Set Date Sale, Offers Closing and All Offers Presented campaigns also attempt to create competition without advertising a fixed asking price. They can work, but auction provides a more formal and transparent process.
An Expressions of Interest campaign may have a closing date, but buyers often question whether the deadline is genuine. They may assume the property will remain available if the owner is dissatisfied with the offers received. Offers are also submitted privately. Buyers do not know whether genuine competition exists, whether another offer is stronger or whether they are being encouraged to improve merely because the seller wants more money.
That uncertainty makes buyers defensive. They may hold back their best price because they do not want to bid against themselves.
A live auction removes much of that uncertainty. There is a clearly advertised date and time. The contract conditions are available in advance. The bidding takes place openly, and buyers can see the level required to remain in the competition.
Other non-priced methods ask buyers to submit their strongest offer in the dark. A live auction allows them to respond to visible, genuine competition.
Some owners believe selling by auction means they will be forced to accept whatever price is offered. That is not the case. The seller sets the reserve and does not have to sell below it.
A strong pre-auction offer can be accepted if the owner believes it represents the best available outcome. The reserve can be established after considering the evidence produced during the campaign, including buyer feedback, inspection numbers, offers and the number of likely bidders. When bidding does not reach the reserve, the property can be passed in and negotiated immediately.
The highest bidder will generally be in the strongest position to negotiate, but other interested buyers can remain part of the process. The seller receives the benefits of a concentrated campaign while retaining the final decision.
An auction campaign should not be judged only by whether the auctioneer’s hammer falls. A property may sell before auction after a strong offer triggers competition among the interested buyers. It may sell under the hammer through open bidding. It may pass in and sell through immediate post-auction negotiation.
In every case, the auction campaign has identified the buyers, forced them to engage and provided evidence about the property’s market value. The objective is not to attract a crowd or create content for social media. It is to achieve the strongest possible result for the owner.
I remain sceptical of poorly managed auctions. I am particularly sceptical when auction is recommended automatically, regardless of the property, likely buyers or prevailing market conditions. I am also sceptical of online auctions that give buyers too much ability to slow or game the process while discouraging other buyers who fear they may be played.
An auction should be recommended because it provides the owner with a better sales campaign. In a genuinely hot market, auction may not be necessary. When serious competition already exists, a skilled agent may be able to achieve an exceptional result immediately without delaying the sale or losing buyers who do not wish to wait.
A weak or falling market is entirely different. When buyers have greater choice and less urgency, competition rarely occurs by accident. Interested buyers inspect at different times, negotiate separately and wait to see whether the seller will reduce their expectations. Without a firm deadline, the campaign can drift and the property can become stale. That is why my view has changed.
In a weak or falling market, a professionally managed live auction should not be treated merely as one option among many. In my view, it is the best method of sale for an owner seeking the strongest possible outcome.
A live auction makes the property stand out. It forces a concentrated effort from the agent and the wider sales team. It identifies and mobilises the available buyers. It creates transparent competition where a normal private negotiation may produce none. Most importantly, it finds the market price quickly.
In a rising market, time can work in the seller’s favour. If the property does not sell this week, market conditions may be even stronger next week.
In a falling market, the opposite can be true. Every additional week may expose the owner to weakening confidence, more competing listings and lower comparable sales. An owner cannot afford to spend months experimenting with unrealistic prices while the market moves beneath them.
Auction is not valuable because every property will produce a dramatic bidding war. It is valuable because it is the most disciplined method of bringing the entire available market to a decision. In a hot market, auction may be optional and sometimes unnecessarily restrictive. In a weak or falling market, a professionally conducted live auction becomes essential.
The question is no longer simply:
“What price should we advertise?”
The better question is:
“What method will attract every possible buyer, make them act at the same time and give us the strongest opportunity to create genuine competition?”
In Perth’s changing property market, one thing is becoming increasingly clear: live, in-person auctions deliver results.
The answer depends on the property, location, buyer profile and current conditions within the individual suburb.
In an extremely hot market, a private sale may create strong competition immediately and avoid losing buyers who do not want to wait for an auction.
As conditions weaken, however, auction becomes significantly more valuable because it creates a deadline and concentrates the available demand.
Some buyers may initially be uncomfortable with auctions. A good agent should explain the process clearly, provide the contract early and assist the buyer in preparing for auction day.
Where someone genuinely cannot attend, telephone bidding or an authorised representative can be arranged.
The objective is to preserve a transparent live auction while giving every serious buyer a practical way to participate.
In my view, no. Online auctions can give buyers too much control over the pace of bidding and allow them to pause, delay or make minimal increments from behind a screen.
They can also deter buyers who are uncomfortable competing against anonymous bidders and fear they may be played.
A live auction makes the competition visible and allows an experienced auctioneer to control the momentum of the negotiation.
Yes. A seller can accept a strong pre-auction offer when they believe it represents the best available outcome.
The auction deadline allows the agent to contact every other interested buyer and give them an opportunity to respond before the property is sold.
The property can be passed in and negotiated immediately. The seller retains control and is not required to accept a price below the reserve.
The campaign will usually have identified the strongest buyers and produced valuable evidence about the market’s view of the property.
No method of sale can guarantee a particular result.
A professionally managed live auction does, however, provide a structured process for finding every genuine buyer, creating urgency and allowing buyers to compete openly.
That gives the seller the best opportunity to discover the strongest price available in the current market.
The method of sale can have a significant effect on the final result, particularly as Perth moves away from the exceptionally competitive conditions experienced during the previous market peak.
Andrew Huggins has sold more than 1,500 properties and conducted well over 100 auctions. For an honest assessment of your property, its likely buyer pool and whether a live auction is the best strategy in the current market, contact Andrew Huggins at Ray White Urban Springs.
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