What You Need to Know About Private Sales (and How to Make Them Work for You)

So, What Exactly Is a Private Sale?

In simple terms, a Private Sale is just any property transaction that’s not an auction or tied to auction conditions. That includes:

• Traditional private treaty sales (make an offer, wait for a response)

   

• Expressions of Interest (EOIs)

   

• Sale by set date

   

• Off-market opportunities

   

• Pre-auction or post-auction offers

   

If there’s no live bidding on the street and no auctioneer, you’re dealing with a Private Sale.

Auctions Are Public. Private Sales Are… Not.

The most obvious difference is that auctions are completely transparent — you can see who’s bidding and exactly how much. Private Sales are, well, private. You’ll often have no idea how many other buyers are interested or what they’re offering.

That can be an advantage, but it can also make it harder to read the play. More on that in a minute.

The 3-Day Cooling-Off Period

Unlike auctions, Private Sales in Victoria (and many other states) come with a 3-day cooling-off period. This gives you the right to back out of a signed contract — but there’s a catch. If you do, you’ll pay a termination fee: either $100 or 0.2% of the purchase price, whichever is greater.

I get asked about this a lot. Technically, yes, you can use the cooling-off period as a kind of safety net — but if you’re already thinking of pulling out before you make the offer, it’s probably best to wait a few days and make sure you’re committed.

This clause is there for genuine second thoughts, not as a fallback for rushed decisions.

Flexibility Around Terms — This Is Your Advantage

Here’s where Private Sales can really work in your favour. Unlike an auction, where everything is unconditional, you can make your offer subject to conditions.

Some common ones include:

• Subject to finance — your lender still needs to sign off

   

• Subject to building and pest — the place needs to pass inspection

   

• Subject to legal review — your conveyancer needs to give the green light

   

You can technically write in any condition you like. I once joked with a client that you could offer subject to winning the lotto. Would it be accepted? Of course not. But legally, you can.

The point is, Private Sales let you tailor the offer to suit your situation. If you need more time to sort finance or want a longer settlement, that’s all negotiable. You don’t get that luxury at auction.

But… Stronger Offers Usually Win

Here’s the catch. If a property has lots of interest and you come in with an offer full of conditions, and someone else is making a clean, unconditional offer — guess which one the vendor is more likely to take?

That’s why buyers sometimes still do their due diligence upfront — inspections, legal checks, finance approval — even if they technically don’t have to. It gives them the chance to make a stronger, cleaner offer when it counts.

The Danger of Overpaying

This one’s important. Because Private Sales are less transparent, there’s a real risk of overpaying — especially if you don’t get a read on the situation.

I’ve seen it happen too many times. One buyer offers $500,000. Another goes to $510,000. Then someone else jumps in with $580,000 — not because the property’s worth it, but because they misunderstood the competition. That’s a $70,000 difference for no reason.

At auction, that doesn’t happen. You can see who you’re up against and how far they’re willing to go. In Private Sales, unless you ask the right questions, you’re bidding blind.

So, How Do You Prepare for a Private Sale?

Here’s a simple rule of thumb:

• If the property has high interest: Do your due diligence before making an offer. That means having your finance sorted, your inspections done, and the contract reviewed.

   

• If it’s a quieter campaign: You can probably make your offer subject to those checks. The vendor may be more flexible if you’re their only serious buyer.

   

The other thing to consider is the process. Is it a sale by set date? Expression of interest? Each one works a bit differently, and there are little advantages you can take depending on how the agent is running the campaign.

Sometimes, you’ll have the chance to secure a “right of reply” — where your offer gives you first crack at negotiating if no one else tops it. In that case, it might be smart to go in early. Other times, it’s better to wait and avoid tipping your hand too soon.

There’s no one-size-fits-all approach — but understanding the process gives you a better chance of playing it right.

Final Thoughts

Private Sales might seem more relaxed than auctions, but in reality, they can be just as competitive — and sometimes more dangerous for buyers who aren’t well-informed.

The key is to be prepared. Know your budget, understand the property’s value, and read the room before making your move.

In the next blog, I’ll walk you through what to do once you’ve found a property you like — before you bid or make an offer. Because timing, preparation, and due diligence can make or break a deal.

And as always, if you’d like a hand navigating a Private Sale or figuring out what strategy makes sense for your situation, feel free to reach out. I’m always happy to help you with your property journey.