In some parts of the world, they auction houses in this exact manner. You show up, post a very large amount of money to prove you're serious, then everyone bids in person like an art auction.

Here in Canada, when the market is hot there are lots of auctions withe multiple buyers competing for a house. In my market (Southern Ontario), it is almost always a sealed bid situation, and winning buyers often outbid their rivals by tens of thousands of dollars.

The agents around here are fond of a process engineered to maximize the bids: If there are multiple bids that are all reasonable, they will tell the lowballs to go home, while telling those remaining how many bids are in, and offering everyone a chance to "sweeten up" before a final decision is made.

I personally would never buy a home through such a process, which tells you that I absolutely would love to sell my home in exactly this fashion should the market be hot whenever that happens.

Now that being said, I cannot say for certain whether the frenzy of shouting bids while staring your opponents in the eye will produce more money or the sealed bids will produce more money.