Private Treaty Sale

Saturday mornings in Melbourne have their own soundtrack. It begins with the clang of a For Sale board being straightened, followed by the rustle of shoe covers at an open inspection. Auctions often steal the spotlight, yet most Victorian homes still change hands through a quieter route: the private treaty sale. If you are house hunting in Coburg, downsizing in Frankston or preparing to list a Richmond townhouse, understanding how private treaty works can save you stress, time and, a very tidy sum of money.

What is a Private Treaty Sale

Think of a private treaty sale as a property negotiation conducted behind a café window rather than on a public stage. The seller, usually through an estate agent, sets an asking price or a price range. Interested buyers submit written offers, and the agent shuttles between parties until a figure and set of conditions suit everyone. Once both sides sign identical contracts the sale is on, subject to any clauses in those contracts.

There is no auctioneer's hammer, no crowd, and no fifteen minute frenzy. Instead, the process unfolds at a pace that can span a single afternoon or stretch over several weeks. That breathing room is the feature many Melbourne buyers, particularly first timers, find reassuring.

How the Private Treaty Process Works in Victoria

Listing and Pricing

The vendor and agent decide how to advertise the price. It might be a fixed figure, a range (for example, $850,000–$900,000) or even "offers over" a certain amount.

Marketing Period

Open inspections are scheduled, professional photos pop up on real estate portals, and buyers wander through on Saturdays with coffee in hand, measuring the living room for their sofa.

Offers and Negotiation

Keen buyers put forward written offers. The agent presents each one to the seller, who can accept, reject or counter. Sometimes the agent will invite all interested parties to submit their "best and final" offer by a deadline Melbourne's version of silent bidding.

Contract Exchange

When both sides are happy they sign the contracts and the buyer pays a deposit, typically ten per cent.

Cooling off Period

Victorian buyers get three clear business days to change their mind. Cancelling costs the greater of $100 or 0.2 per cent of the purchase price, far less than forfeiting a full deposit at auction.

Settlement

On the agreed date often 30, 60 or 90 days after signing the balance is paid, the keys change hands and removalists start carrying boxes through the front door.

Key Legal Points for Private Treaty Sales

Section 32 Statement

A private treaty sale cannot proceed without a Section 32. This vendor statement lays out title details, zoning, services, easements and any mortgages or covenants. Think of it as the property's health record.

Conditional Clauses

Buyers frequently include finance approval and building and pest clauses. That safety net is a major reason some purchasers steer clear of auctions.

Cooling-off Penalty

If you withdraw during the three day period you lose only a sliver of money, not your entire deposit. Sellers, however, live with a short window of uncertainty, which is why they often lean toward buyers who are already financially vetted.

Because these documents are dense and the stakes high, looping in a conveyancer before you sign anything is smart practice.

Private Treaty Sales: Pros and Cons for Sellers

Pros:

Greater control over price expectations and timing
Avoids auction nerves and public scrutiny
Ability to negotiate flexible settlement, rent back or repairs
Suitable for niche properties that may not shine at auction

Cons:

Longer days on market can increase holding costs
No auction buzz can reduce urgency among buyers
Sale can fall through if buyer cools off or finance is declined
Overpricing risks the listing going stale

Pricing is the biggest trap. An ambitious asking price can leave a property stranded on Domain well past the median 33 days on market, forcing price drops that attract bargain hunters.

Private Treaty Sales: Pros and Cons for Buyers

Pros:

Opportunity to negotiate price, settlement length and conditions
Three day cooling off safety net
Time for proper due diligence finance, building, strata
No public bidding stress

Cons:

May face silent multiple-offer scenarios one chance to impress
Vendor can accept a better offer until contracts are exchanged
If the property is well priced, hesitation may mean missing out
Less transparency about competing offers compared with an auction

Prepared buyers line up finance pre approval, a trusted conveyancer and a building inspector before they even request a contract. Quick action beats regret every time.

Private Treaty vs Auction in 2025

Melbourne's property market remains a tale of two sales methods. Inner city terraces in Fitzroy still draw crowds to auctions, driven by fierce competition. Yet family homes in Ringwood and new builds in Point Cook often sell privately, where an advertised price provides certainty in a landscape of higher interest rates.

Recent data show private treaty homes nationally take roughly 33 days to secure a buyer, while auction clearance rates hover in the low 60 per cent range. In practical terms, that means a well priced listing in Preston can sell within a month without the theatre of a Saturday auction.

Where Private Treaty Shines

Private treaty suits suburbs with diverse housing stock and buyer demographics, such as Brunswick West or Reservoir, where a one size fits all auction rarely captures every buyer's budget. It also works well for unique properties garden studios, converted warehouses, heritage cottages where value is subjective and negotiations need room for creative terms.

Tips for a Smooth Private Treaty Transaction

If You Are Selling

Obtain an independent valuation or comparative market analysis so your price sits within five per cent of market value
Have your Section 32 and draft contract ready before the first open. A responsive seller can snap up a strong offer before buyers drift to the next listing
Consider inviting best and final offers by a deadline to create gentle urgency

If You Are Buying

Put every offer in writing, ideally accompanied by a brief cover letter. Sellers do read them, and a human story can tip the balance when prices are close
Shorten conditions finance in seven days rather than fourteen or increase your deposit to stand out
Ask the agent whether other offers are on the table. They must answer honestly, even if they cannot disclose details

The Role of Your Conveyancer

Estate agents may shake hands on price, but conveyancers guard the paperwork that makes a deal watertight. Pearson Chambers Conveyancing will:

Review the Section 32 so you know if that rear easement carries future drainage works
Draft or amend special conditions to match your goals, for example early access for minor renovations
Coordinate with banks, handle PEXA settlements, manage stamp duty calculations and ensure the title registers without hiccups

Most importantly, we translate legalese into everyday language. Clients often say the biggest relief is having someone who will pick up the phone and explain, in plain terms, what each clause means.

Real Private Treaty Success Stories

Mia and Jason, Coburg North

This young couple loved a 1970s brick veneer but feared an auction. They offered $15,000 under the vendor's asking price, added a seven-day finance clause and a two-month settlement so they could finish their lease. The agent presented three offers that weekend. The vendor chose Mia and Jason not the highest price because their conditions suited his timeline.

Helen, Malvern East

Helen had lived in her Edwardian home for forty years. She disliked the idea of strangers bidding on her front lawn and wanted flexibility to rent the property back for three months while she secured a retirement unit. A private treaty sale allowed those personal terms, something an auction rarely delivers.

Sam and Priya, Werribee

Expecting their second child, Sam and Priya needed a larger backyard and a quick settlement. They found a new build where the vendor was relocating overseas. By offering the advertised price with just a five day finance condition and a 30 day settlement they beat a higher but conditional competitor. The couple moved in two weeks before their baby arrived.

These stories remind us the property game is more than numbers on a portal. People and lifestyle goals sit at the centre.

Conclusion

Private treaty sales offer negotiations and room to think, but they demand attention to contracts, conditions and legal deadlines. Whether you plan to list your Carlton townhouse or place an offer on a Mornington Peninsula beach shack, expert guidance smooths the process.

Ready for clarity? Call Pearson Chambers Conveyancing on 03 9969 2405 or email contact@pearsonchambers.com.aufor a free Section 32 contract review and an obligation-free chat about your next property step. We look forward to helping you navigate Melbourne real estate with confidence.