‘I have so many questions’

Some Americans have been amazed at how many homes are being sold in Australia – but Australians aren’t sure what’s going on.

A clip from an auction in Melbourne has gone viral after a confused New Yorker told his 50,000 followers on X, formerly Twitter, about the “crazy” way Australians were selling houses – and jokingly suggested they were keeping it from the world.

“Think of all the Australians you know,” wrote Stephen Smith.

“Maybe they’re your friends or co-workers. Maybe they serve you brunch….

“But you know what they don’t serve you? The truth about how they sell houses.’

The clip, which has since amassed over 2.5 million views, has sparked a flood of similarly confused reactions.

“Is it real?” asked one.

“So a man stands in a literal street outside a house for sale and takes offers from anyone? Are the homeowners sitting inside and listening? I have so many questions,” wrote another.

Someone else quipped that “the American mind boggles that the auction is being run by someone other than an obscure Texan and they’re selling something other than cattle.”

But the vast majority of responses were instead from Australians confused by the fact that people didn’t know how houses were sold in the country.

“I’m Australian and I don’t see what’s so secret about it,” said one.

“Wait… doesn’t every other country sell houses through auction?” Surely this is not unique to Australia?” said another.

Others said it often served as a great social occasion for neighbors.

“Not only are most Australian homes sold this way, it’s often a big, impromptu street event,” they said.

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“The last house on my trip that sold at auction in Sydney had about 100 people and all my neighbors were drinking together. That’s great!’

Another said “going to auctions is like Saturday sport here in Sydney”.

Meanwhile, others defended the auction process, saying it allowed each bid to be above average and reduced the stress of submitting a bid only to have it rejected.

“Maybe it’s theatrical, but it’s transparent. None of these American secretaries are lying about who offered what,” they wrote.

“No due diligence, contract signed, deposit paid, cooling off period for finance approval, both sides come to settlement – ​​auctioneers are clowns, but this process is a much better way to maintain certainty for both seller and buyer and very few sales fall through. result,” said another.

Others, however, were more critical of the auction system.

“This is the only time ‘Americans are confused and appalled by Australian behavior’ where they are 100 percent right,” one said.

Another added: “I’ve bought two houses in my life and probably paid 300 per cent over market value to avoid these twisted little auctions.”

Isa Hafalir, Professor of Economics at the University of Technology Sydney, has lived in both Australia and the US and has first-hand experience of buying property in each.

He said auctions were “very rarely” used in the US but were popular in Australia because of the competitive property market

“In Australia, estate agents and auctioneers want neighbors and a large group of people to come, even if they’re not serious buyers, because it has that psychological effect that it’s a hot property and a lot of people are interested in it. Professor Hafalir told news.com.au.

He said it was also a more transparent process for buyers because they could see who was bidding what – unlike in the US, where parties can bid above or below the asking price.

According to PropTrack data, more than 13 per cent of houses and units sold in Australia this year were at auction.

It is most popular in the ACT with 27 per cent, 22 per cent in Victoria and 20 per cent in NSW.

Figures for other states and territories were much lower – a fact reflected in some of the reactions to the viral video.

“Very few houses in Western Australia are sold at auction. It’s very much a Sydney and Melbourne thing,” one person said.