A vendor bid is a bid placed during an auction by the auctioneer on behalf of the seller (the vendor) rather than a genuine buyer. It is used to stimulate or maintain bidding, start the auction, or move the price toward the seller’s reserve, and must be clearly identified as a vendor bid. It is not a formal offer to sell to the bidder making the bid, and it cannot be over the seller’s reserve price. If bidding fails to reach the reserve, the property may be passed in, and the seller may then negotiate with the highest bidder. Vendor bids are regulated in many jurisdictions to ensure transparency and prevent deceptive bidding practices.