A vendor bid is a bid made by the auctioneer on behalf of the seller (the vendor) during an auction, rather than by a genuine outside buyer. It is mainly used to move the bidding along or push the price closer to the seller’s desired minimum (often the reserve price).

Quick meaning

  • A vendor bid is not a real buyer’s offer; it is a tactical, “in-house” bid from the seller’s side.
  • It is often used at property auctions when buyers are slow to start or the price is still below the reserve.

Why vendor bids are used

  • To kick‑start an auction if nobody wants to open the bidding at a reasonable level.
  • To nudge the price closer to the seller’s minimum acceptable price, helping avoid a failed auction.
  • To create a sense of momentum and encourage genuine bidders to keep competing.

Legal and transparency points

  • In places like Australia, vendor bids are legal but must be clearly announced as “vendor bid” so buyers are not misled.
  • Rules vary by jurisdiction: some systems treat undisclosed vendor or “dummy” bids as deceptive and may prohibit them.

TL;DR: A vendor bid is a seller-side bid called by the auctioneer to boost or start the price at auction; it is allowed in some regions if clearly disclosed, but it is not a genuine buyer offer.

Information gathered from public forums or data available on the internet and portrayed here.