Close but no cigar. That was the sentiment at the auction of an Edwardian home in Preston.

Despite the best efforts of three spirited bidders, who pushed bidding above the advertised selling range, the property was passed in.

It’s a familiar tale across the city, where knock-out results are becoming few and far between.

Some agents say there’s a reluctance to drop the reserve price on auction day because negotiations often achieve better than expected results.

That was the case at 22 Hawker Avenue on Saturday afternoon. Auctioneer Mathew Marotta, of Ray White, opened the auction with a vendor bid of $950,000.

A man immediately offered $1 million, within the property’s advertised range of $990,000 to $1,085,000.

From there, three groups competed in $10,000 bids until the auction stalled at $1,125,000.

After speaking with the vendor, Mr Marotta informed the crowd of roughly 20 people that the property was “close to selling” but would be passed in.

Within hours, the house had sold for $1,155,000 to the highest bidders, a local couple with two children who were looking to upsize from a townhouse a few streets away.

Selling agent Chris Vlahos said the buyers and vendor “found a happy medium” during negotiations and both parties were pleased with the result.

“Negotiations are part of the auction process these days,” he said. “We could have gone back out there and said we were selling, but I think we made the right judgement.”

The price was in line with a home that needed some work, Mr Vlahos said. “The floorboards needed to be sanded, the bathroom needed to be completely redone, and [it needed] re-stumping. But it had the bare bones and people loved that.”

Title records show the property last changed hands in 2009 for $540,000.

It was one of 821 auctions scheduled across the city. By evening, Domain Group had recorded a clearance rate of 62.3 per cent from 668 reported results.

Earlier in Collingwood, a three-bedroom penthouse apartment attracted just one bidder at auction.

Set over two levels with floor-to-ceiling glass windows, the luxurious apartment at 402/35 Victoria Parade was owned by the family who developed the entire complex.

While it passed in at $1.86 million, it quickly went on to sell to the sole bidder, a family with older children moving from the south-eastern suburbs, for $1.96 million.

Nelson Alexander listing agent Rick Daniel said post-auction negotiations were becoming more common across the board.

“It’s becoming a bit of a theme of the market,” Mr Daniel said. “I tell vendors that it’s not the end of the world if a property passes in.”

The success of a property depends on its price point, he said.

“A lot of the estimates now reflect results from when the market was much stronger,” he said. “It’s about managing everyone’s expectations.

“Whilst clearance rates are down, properties that are priced correctly are selling within two or three weeks.”

Entry-level properties continue to buck the trend, drawing fierce competition from first-home buyers.

Six hopeful homeowners fought for a three-bedroom brick home in Reservoir advertised with a price range of $600,000 to $650,000.

After the auction of 16 Wellman Street opened with an offer of $580,000, bidding was slow but steady, dropping to rises of just $500.

The house was declared on the market at $650,000 and went on to sell to a young couple for $653,000.

“The first-home buyer market is still very strong,” said listing agent Keb Nguyen, from Ray White. “But the second-home buyer market has taken a big hit.”

Mr Nguyen said the vendors, who bought the house for $341,000 in 2012, were relocating to the country.