Agents often champion auctions not just for their excitement or speed — but because auctions are a powerful tool in what we call the “third sale”: convincing the vendor to accept the buyer’s terms.

At auction, initial bids may come in lower than the vendor expects, creating pressure to lower expectations and accept less. This “vendor conditioning” encourages sellers to “meet the market” quickly, settling for the highest bid rather than holding out for more.

Another key advantage for agents is that auctions are unconditional sales — there’s no cooling-off period and contracts are binding immediately. This means the agent’s commission is far more guaranteed compared to private treaty sales, where buyers might withdraw or renegotiate after inspections or delays.

While auctions create urgency and finality, this environment often benefits the agent’s timeline and payout more than the vendor’s best possible price.

Understanding this helps sellers make informed decisions and resist pressure to accept terms that may not serve their goals.