The opaque world of private treaty

This may ruffle some feathers, but I can’t help but feel that the private treaty system we have adopted to sell homes is a relic of the dark ages. It's very name 'treaty' conjures up images of an 18th century monarch signing a parchment paper agreement with a quilled pen.

Why then, in 2025 are buyers and sellers still being tormented with a system fit for purpose hundreds of years ago?

Today, people try to navigate the complex world of 'market value' blindfolded. Wandering, lost in the woods, they try to make sense of the ambiguous and often misleading journey towards common ground. A small clearing in the trees where the light shines through and there is some resemblance of clarity. Exhausted and bewildered, they agree and sign the contract. A momentary feeling of joy. And some relief that the process has finished. At least for now.

Now, I am sure that there are plenty of people who have enjoyed their buying or selling journey. But I would guess there would be more of those who did not.

So why can’t a home's 'true value' (willing buyer/willing seller) be derived from supply and demand in real time; not based on an overtly private, private treaty. Just as a share price is quite literally a moving target, the property's price should be visible, accessible but most importantly dynamic.

And yes, most homes are not commodities. Clearly these are highly nuanced transactions with complex moving parts steeped in emotions.

A Telstra share, for example, does not fill people with fond memories, family milestones or priceless moments. But when the time comes to move on, another family will inevitably embrace your home, just as you had done all those years ago.

But, at the changing of the guard and in the eyes of your future buyer, it becomes primarily an asset based on perceived value and potential growth (notwithstanding that it likely solves an accommodation problem)

The complex algorithms used in pricing software are already changing the game across the hotel, car and airline booking industries. You know when the price of the flight you looked at online two days ago has now increased by $200? Dynamic pricing.

Imagine you’re running a hotel. Your standard rate is $210 per night, $220 on weekends, and $250 in peak season. Then, Taylor Swift announces a concert in your city on what would typically be a “standard” Friday and Saturday. Fans scramble for tickets, and hotels fill up fast. If you stick to your fixed rate, you’ll sell out quickly—but leave a lot of potential revenue on the table. Instead, you adjust dynamically, increasing rates and offering new packages that capture the heightened demand.

What if a property’s price could respond dynamically to demand, like in the hotel example? A home near a top-performing school could adjust its value as other homes in the catchment area sell, driving interest. Software could track the number of online clicks on a listing, attendance at home opens, and even buyer enquiries to fine-tune pricing.

Features like a pool, extra garage, or recent renovations would inflate pricing. New infrastructure announcements or an influx of interstate buyers.... the price adjusts upward, benefiting the seller. If interest wanes, pricing becomes more competitive.

A home’s price, with sophisticated dynamic pricing software could reflect hyper accurate 'real-time' market interest—transparent, fair, and responsive.

A system that eliminates ambiguity. Buyers know the actual price of a home at any moment, much like checking a flight or stock value. Sellers gain confidence their property is priced right for the market, avoiding low offers and most importantly capitalizing on increased demand.

Should the real estate industry align with modern expectations for clarity and fairness? With the right tech, and a fundamental overhaul, the opaque world of the private treaty could one day be a thing of the past.

For now, thankfully, I still have a job.