COHEN ON REAL ESTATE

In Australia, auctions aren’t a last resort—they’re the main event.
In cities like Sydney, Melbourne, and Brisbane, over 70% of residential transactions go under the hammer. And it’s not just tradition—it’s performance. Properties sold via auction in Australia consistently fetch higher prices than those sold through private treaty (what Americans call “listings”).
Watch Justin in action on this waterfront property

Why?
Because auctions, done right, create urgency, transparency, and competition—all the ingredients for strong pricing. And now, thanks to digital tools, that momentum is moving online. I spoke with @Justin Nickerson, a leading property auctioneer with Apollo Auctions and three-time winner of the Australasian Auctioneering Championships. He explained the mindset behind
the process: “Buyers like to work with sellers who actually want to sell—and they know that if it’s at auction, the seller is motivated and there’s a deadline” The format is fast-paced, transparent, and designed for competitive bidding.

Inside the Process: How Aussie Auctions Work

1. 3–4 Week Campaign
   Properties are heavily promoted with open homes and buyer qualification leading up to
   auction day.
2. Guide Price, Not a List Price
   Sellers set a reserve, but pricing is flexible—buyers understand that competition will
   determine the final number.
3. Auction Day = Sale Day
   If bidding meets or exceeds the reserve, the property sells under the hammer. If not, it
   often sells shortly after in post-auction negotiations.
4. Hybrid Selling
   Many auctioneers now run in-person and online auctions simultaneously.
   Nickerson likens the dynamic to elite sports:

“It’s why 100-meter world records are broken at the Olympics—because the best in the world are competing at the same moment. That competition pushes everyone to perform better.”

What the Data Says
Research by David Genesove and James Hansen, using more than two decades of Sydney and Melbourne sales data, found:
“Auction prices forecast better, display less momentum, and help forecast economic activity much better than negotiated prices.” – Auctions and Negotiations in Housing Price Dynamics
In other words, auctions capture market reality faster—because they’re driven more by active buyer competition than by seller expectations.

Commercial Auctions in Australia
While most auctions in Australia are still residential, the commercial model is growing where speed, exposure, and competitive tension can beat drawn-out private negotiations.

The U.S. Market: The Shift Is Already Happening
In the U.S., auctions have long carried the stigma of distress or discount—a “last resort” strategy for troubled assets. But that perception is changing. Platforms like Crexi have already begun to shift the paradigm, connecting motivated sellers with
motivated buyers who actively compete for properties in a transparent, time-bound environment. This isn’t your grandfather’s courthouse auction—today’s commercial auction is a highly marketed, data-driven process designed to maximize price and certainty of close.

Final Thought for U.S. Commercial Brokers & Sellers:
Australia doesn’t run auctions because it’s quirky. They do it because it works. And in the U.S., the tools, audience, and success stories are already here. The brokers who embrace auctions not
as a fallback, but as a premium sales strategy for motivated sellers, will be the ones setting new price records—not chasing them.

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