Your essential guide to understanding sales methods

Buying a property is a big step, and having a clear understanding of the different sales methods will help you feel more prepared and confident. Each approach - whether it's an auction, private sale, or off-market opportunity - comes with its own considerations. At Jellis Craig, we’re here to guide you every step of the way.

Auctions are the most popular sales method in metropolitan Melbourne. However, if you are looking to buy at auction, there are a few things to keep in mind:

Registration: Some auctions may require you to register to bid, so it is always a good idea to confirm this with the agent ahead of time.

Deposit and settlement: Make sure you know what deposit will be required and the settlement date before auction day.

Auction rules: Take time to familiarise yourself with the auction rules, which will be displayed at the property or available on our website here.

Unconditional sale: An auction sale is unconditional. This means you can’t add special conditions such as finance approval or a building inspection, so make sure you sort out these matters beforehand.

Vendor bids: If there is no bidding, or bidding doesn’t reach the reserve price, the auctioneer may place a bid on behalf of the seller to move the auction forward. You will hear the words ‘vendor bid’ when this happens. 

On the market: Once the auctioneer announces the property is ‘on the market’, it will be sold to the highest bidder thereafter.

Passed-in properties: If the property is passed in because bidding did not reach the reserve price, the highest bidder will usually have the first right to negotiate directly with the seller.

Contracts and deposit: After the auction, contracts are signed immediately, and you will need to pay the deposit.

In an Expressions of Interest (EOI) campaign, buyers submit an offer for the property through the agent. Here are some key points to consider:

Closing date: Some EOI campaigns have a set closing date and time and you must submit your offer before this deadline. If no deadline is set, it is always a good idea to submit your offer as soon as possible.

Transparency: At Jellis Craig, we ensure transparency by disclosing offers to all interested buyers. If there are multiple offers, each buyer will be invited to increase their offer until the seller accepts the best and final price. This is similar to a public auction and is the fairest negotiation process for everyone involved.

Special circumstances: Occasionally, the vendor may choose to forgo this competitive negotiation process and accept an offer directly.

Private auction: In some cases, EOI campaigns might end with a private auction under exclusive sale conditions. 

Finalising the sale: Once your offer is accepted, contracts are signed, and the sale is finalised.

An off-market sale is when you buy a property that has not been publicly listed or advertised. This approach offers:

Exclusive access: These properties are shared through an agent’s private network rather than advertised on public platforms. In Jellis Craig's instance, look out for properties on our website under Jellis Craig First. These properties are exclusively listed on our website and not yet shared to portals such as REA and Domain.

Privacy: For those seeking discretion, off-market sales provide a more confidential process.

Targeted approach: An off-market sale is typically handled through a tailored and selective sales process.

Agent communication: To ensure you don’t miss out on any potential off market listings, it is recommended to sign up to an agent’s property alert emails to receive off market listings straight to your inbox.