Demystifying Property Auctions: What I've Learned From Both Sides of the Room

Auctions are the most common way to sell a home in Auckland, and yet they're probably the most misunderstood. I hear the same concerns from sellers and buyers alike — and most of them are based on myths that don't hold up once you've been through the process.

I've sat on both sides of the auction room. I've run campaigns that delivered well above expectations under the hammer, and I've helped buyers win properties for less than they expected to pay. The auction process works — but only when you understand how to use it.

Here are the myths I hear most often, and what actually happens in practice.

For sellers: what property auctions really look like

"If it doesn't sell under the hammer, I've failed."

This is the biggest misconception in real estate. A property passing in is not a failure — it's a stage in the negotiation.

I recently took a property to auction at 60 Chivalry Road in Glenfield. The home was beautifully presented, the campaign generated around 50 groups through the first open home and consistently strong numbers each week after. On auction day, we conducted it onsite — seven registered bidders in the room. It sold under the hammer for $1.025 million, right at CV. In a market where Glenfield properties were regularly selling below CV, that result came from the competition we built in the room.

But not every property sells on the day, and that's completely fine. The auction process creates urgency, surfaces genuine buyers, and builds momentum. When a property passes in, the highest bidder typically gets first right to negotiate — and that post-auction negotiation often produces a stronger result than the bidding itself did. Some of my best sales have happened in the days after auction, not on the night.

"I lose control over what my home sells for."

You're in control from start to finish. You set the reserve price — the minimum you'll accept — and you're under no obligation to sell if bidding doesn't reach it. A well-run auction isn't about leaving your result to chance. It's about creating the conditions where buyers compete openly, so you can see exactly what the market is willing to pay.

The reserve is a safety net, not a target. The target is whatever the competition in the room can produce — and that's where the campaign, the presentation, and the auction strategy all come together.

"Auction limits my buyer pool."

This one comes from the idea that only cash buyers or investors can participate. In reality, auction is simply a method that prioritises unconditional buyers first. Most serious purchasers — including first-home buyers — are able to arrange finance approval and complete due diligence before auction day. And if the property passes in, you can immediately open the door to conditional offers. You're not locking anyone out — you're just establishing the strongest possible starting point.

At 60 Chivalry Road, several of the seven registered bidders were first-home buyers. The online estimate for that property sat between $855,000 and $970,000. It sold for $1.025 million. The competition in the room — not the algorithm — determined the price.

For buyers: how to walk into a property auction with confidence

"Auctions are too risky — you can't protect yourself."

Auction purchases are unconditional, yes. But that doesn't mean you go in blind. The entire point of the campaign period — typically three to four weeks — is for you to do your homework. Get legal advice, review the LIM and title, order a building inspection, and secure your finance. By auction day, you should know more about that property than you've ever known about any home you've considered. You're not taking a risk — you're making a fully informed decision.

The risk people worry about isn't actually the auction itself. It's the fear of not being prepared. Solve the preparation problem and the risk disappears.

"You can't negotiate at auction — it's too rigid."

Every time you raise your hand, you're making an unconditional offer to the vendor. That's a negotiation — just a fast-paced, transparent one. You can see exactly what you're up against, unlike a multi-offer or tender situation where you're guessing in the dark.

And if the property passes in, you negotiate directly. I recently helped a buyer purchase a unit at 1/167 Forrest Hill Road. There were two bidders. We'd done the preparation work well before auction day, and part of that preparation was something I always do with my buyers — I ask them to write down three prices before they walk into the room.

The first is their delighted price — what they'd be thrilled to pay. The second is their fair market price — what they believe the property is genuinely worth based on comparable sales. The third is their grumpy price — the absolute ceiling, the number where they'd still go through with it but wouldn't be happy about it.

The strategy is simple. Bid confidently and assertively to your fair market price. If you need to go further to win, bid up to your grumpy price. But never go beyond it.

At Forrest Hill Road, we bid hard from the start. The auction moved into negotiation with the vendor, and my buyer ended up purchasing below her grumpy price. She walked away knowing she'd won it for less than she was prepared to pay — because she had a plan before the adrenaline kicked in.

"The price is unknown — it's too risky."

There's no listed price at auction, but you're not flying blind. Recent comparable sales, the CV, online estimates, and your agent's market knowledge all give you a framework. The three-price exercise I just described is how I help my buyers convert that research into a clear, personal strategy.

The unknown isn't the price. The unknown is how many other buyers want it as much as you do — and auction is the one method where you get to see that in real time.

Auctions aren't a mystery — they're a method

The process works when you understand it. For sellers, it creates competition and a clear timeline. For buyers, it offers transparency and a level playing field. The key on both sides is preparation, strategy, and having someone in your corner who's been in that room before and knows how it plays out.

If you're thinking about selling and want to understand whether auction is the right method for your property, or if you're a buyer preparing to bid for the first time, we're happy to walk you through it. No jargon, no pressure — just a straight conversation about how to get the best result.

Let's talk →