I was speaking yesterday with one of my best mates, a real estate agent in Miami, and we got onto the topic of multiple offers.
What he told me genuinely surprised me.
Over there, agents aren’t even allowed to disclose competing offers. Buyers submit their “highest and best” and that’s it. No transparency. No back and forth. No ability to know where you sit. Just sealed numbers and guesswork.
And I couldn’t help thinking that it does a real disservice to vendors.
Because buyers rarely perform at their best in the dark.
In my experience, buyers almost never put their best foot forward in an offers process that lacks transparency – such as a “highest and best” situation.
They hedge. They hold back. They protect themselves. They worry about overpaying.
Ironically, many buyers would rather pay tens of thousands, sometimes hundreds of thousands more knowing there is a genuine competing buyer just below them than secure a property for less but forever wonder if they overpaid.
It’s not rational, but that’s human psychology. Certainty beats ambiguity.
Luckily, Melbourne is different.
We are fortunate to operate in what is arguably the auction capital of Australia, if not the world.
Auctions are transparent. Buyers can see who they’re competing against. They know when the property is on the market. They know when it’s selling. There are no sealed envelopes and no mystery conversations happening behind closed doors about a buyer who has made a similar offer but on “less favourable terms”.
I can’t tell you how many times I’ve seen multiple buyers sit below an asking price during private negotiations, only to bid above that level once genuine competition becomes visible.
Buyers who were adamant they “wouldn’t go that high” suddenly do when they know they’re playing for keeps and don’t want to miss out.
Yes, auction can feel riskier as a vendor. You’re exposed. You’re relying on competition. You’re committing to a public date and a mournful sigh from all the neighbours if the property passes in without a bid.
But if you want buyers to perform at their absolute best, and you want to sleep at night knowing you achieved fair market value, auction still gives you the highest probability of that outcome in most cases.
Not every property suits auction. Some unique homes require tailored terms or a quieter approach. But for the majority of well-positioned family homes, transparency works.
On Saturday, Jellis Craig recorded an 80% clearance rate across 160 auctions. That’s significant volume and well above the state average clearance rate of 65%.
There’s a lot of noise out there currently. Market headwinds. Rates. Wars… It’s true. But 80% clearance across 160 auctions is very solid.
It tells you buyers are there. They’re engaged. And when campaigns are run properly, they transact.
This is a good market to be buying and selling. Vendors are meeting the market in most instances, and buyers are prepared to compete when they believe in the property.
Featured Property: 7 Anderson Street, Malvern East
David Sciola 