Day of the Auction: What’s a vendor bid?
A vendor bid is essentially a counter offer for the vendor. It is always made well below the reserve figure. If you are still interested, you need to place another bid to have a chance of success. If it gets to a stage after the second, or third vendor bid at the most, the auctioneer will simply say something to the effect of, ‘If there are no more bids in the room, we will pause the auction and we will have a discussion with the buyer.’ Hopefully at that point if you can reach an agreement between yourself, the vendor and the auctioneer, all parties will return to the auction room, the property is on the market, the auctioneer will ask for any final bids and the property is sold.
Jim Davis explains this process in the video below.