To Auction or Not to Auction?
Choosing the Right Sales Strategy for Homes and Units in NSW
At Cumberland Realty, one of the first conversations we have with sellers is whether auction or private treaty is the right method for their property. It’s a crucial decision - because the sale strategy you choose can directly impact both your final sale price and your overall selling experience.
In the NSW residential market, particularly for houses and units, the answer is never one-size-fits-all.
Below is our practical guide to when auction works best, when it doesn’t, and how we help our clients choose the right path forward.
When Auction Is the Better Option
Strong Buyer Demand and Limited Supply
Auctions perform best when competition is high. In NSW, this is commonly seen with:
- Standalone family homes
- Properties in blue-chip or tightly held suburbs
- Homes close to schools, transport and lifestyle amenities
When multiple buyers are emotionally invested and fear missing out, auction competition can drive strong results.
Broad Owner-Occupier Appeal
Homes that are easy to understand and easy to value tend to suit auction campaigns, including:
- Well-presented residential houses
- Renovated or character homes
- Properties with a clear target market
Owner-occupiers are often motivated emotionally, which auctions are designed to capitalise on.
Sellers Seeking a Defined Timeframe
An auction provides:
- A set campaign period (typically 3-4 weeks)
- A fixed sale date
- Transparency and urgency
This structure suits sellers who want certainty and momentum rather than prolonged negotiations.
Confident or Rising Market Conditions
When buyer confidence is strong and prices are trending upward, auctions can perform exceptionally well as buyers compete now rather than wait.
When Auction May Not Be the Best Fit
Units and Apartments (Especially Investor Stock)
Across much of NSW, apartments and villas often achieve better outcomes via private treaty. This is because:
- Pricing is more data-driven and comparable
- Investors are less emotionally driven
- Strata costs, building age or supply can affect urgency
In these cases, quiet negotiation frequently outperforms public bidding.
Narrow Buyer Profiles
Properties with a limited audience - such as older units, unique layouts, or properties with constraints - often benefit from:
- Time on market
- Tailored conversations
- Strategic negotiation
Private treaty allows buyers to engage without pressure.
Overpricing Risk
Auctions require realistic price expectations. If the market doesn’t meet the vendor’s reserve:
- The property may be passed in
- Buyer momentum can stall
- The campaign can become publicly “tired”
Private treaty allows pricing adjustments discreetly without public perception issues.
Cautious Market Conditions
During times of rising interest rates or tighter lending, buyers prefer:
- Time for due diligence
- Finance approval flexibility
- Calm, structured negotiations
Private treaty is often better aligned with these conditions.
Why Private Treaty Often Suits the NSW Unit Market
For many NSW units and apartments, private treaty offers:
- Confidential negotiations
- Flexibility on price and settlement terms
- The ability to respond to feedback without overexposure
This approach is particularly effective for investor-driven purchases and strata properties.
A Growing Trend: Off-Market and Soft Launches
At Cumberland Realty, we regularly achieve strong results through:
- Off-market campaigns for discretion and price testing
- Private buyer targeting before a public launch
This strategy allows sellers to gauge genuine demand and refine pricing before committing to a full campaign.
Our Advice
- Auction suits high-demand homes with strong owner-occupier appeal
- Private treaty suits most units, investment properties and niche homes
The best results come from choosing the right strategy for your specific property - not simply following the market trend.
For tailored advice based on current local conditions, buyer demand and comparable sales, speak with the team at Cumberland Realty.