Why many Americans have been left shocked by the way Aussies sell houses: ‘I have so many questions’

Some Americans are baffled by the way many homes in Australia are being sold, but Aussies don’t know what all the fuss is about.

A clip from an auction in Melbourne went viral after a bewildered New Yorker told his 50,000 followers on

“Think of all the Australians you’ve known,” wrote Stephen Smith.

‘Maybe they’re your friends or colleagues. Maybe they’ll serve you brunch….

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

The clip, which has since been viewed more than 2.5 million times, prompted a flood of similarly stunned reactions.

“Is this real?” someone asked.

“So a guy literally stands in the street outside the house that’s being sold and takes an offer from whoever? Do the homeowners sit inside and listen? I have so many questions,” wrote another.

Someone else joked that “Americans are baffled by letting anyone other than an inarticulate Texan run an auction and sell anything other than cattle.”

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

“I’m Australian and I don’t understand what’s supposed to be secret about this,” one person said.

The clip, which has since been viewed more than 2.5 million times, sparked a flood of similarly stunned reactions (stock image)

“Wait…doesn’t every other country sell houses at auction?” This isn’t unique to Australia, is it?,” said another.

Others said it was often a great social occasion for the neighbors.

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

‘At the last house on my street that was sold at auction in Sydney, there were about a hundred people there, and all my neighbors had a drink together. It is awesome!’

Another said that ‘going to auctions here in Sydney is like a Saturday sport’.

Meanwhile, others defended the auction process, arguing that it allowed any bid to come above the table and reduced the stress of submitting a bid only to be rejected.

‘It may be theatrical, but it is transparent. None of this American undercover lies about who offers what,” they wrote.

‘No hassle, contract signed, deposit paid, cooling off period for financing approval, both parties reach a settlement – the auctioneers are clowns, but the process is a much better way to maintain certainty for both seller and buyer and very few sales fall away as a result,” said another.

However, others were more critical of the auction system.

“This is the only example of ‘Americans being stunned and shocked by Australian behavior’ where they are 100 percent right,” one person said.

More than 13 percent of homes and units sold in Australia this year were through auction, according to PropTrack data

Another added: ‘I’ve bought two houses in my life and probably paid 300 per cent more than market value to avoid attending these perverted 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 both countries.

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

‘In Australia, estate agents and auctioneers want the neighbors to come and a large group of people, even if they are not serious buyers, because it has such a psychological effect that this property is popular and a lot of people are interested in it. Professor Hafalir told it news.com.au.

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

More than 13 percent of homes and units sold in Australia this year were through auction, according to data from PropTrack.

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

The figures for other states and territories were much lower – a fact reflected in some responses to the viral video.

“There are very few houses in Western Australia that are sold by auction. It’s mainly a Sydney-Melbourne thing,” one person said.