Those looking at a property for sale for the first time may attend an auction and hear the phrase "vendor bid" - but possibly won't know what that means.
A vendor is the owner of the property for sale and a bid is an offer on a piece of real estate.
So a vendor bid can be made by the auctioneer on behalf of the vendor and is used to start the process if no one in the auction has raised their hand with an amount.
It can also occur during an auction after a bid has been made from a member of the audience.
When an auctioneer says "vendor bid" and then names the price, it is an indication that the current bidding value is not meeting the vendor's expectations. This will show the interested parties that if they want the property, they will have to offer more money.
Typically, a vendor has one bid to use throughout the auction at any time, it just can't be above the reserve price.
While there are no regulatory restrictions about the number of vendor bids allowed in an auction, the auctioneer will judge each situation differently and make an assessment on how many - if any - they should make.
Want to know more about buying or selling your home at auction? Visit the Auction Hub which has the complete guide to property auctions.
