What is a vendor bid? The auction day practice, explained

Block Auction Day is a whirlwind of emotions – and lingo!

As the Daylesford homes go under the hammer, you can expect to hear auction terms like depreciation, pass in and vendor bid.

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Here, we explore what a vendor bid is and why it came make or break an auction result.

What is a vendor bid?

A vendor bid is a bid made by the auctioneer on behalf of the vendor.

It is used when the seller is not satisfied with the amount of the previous bid, or to help start or move the auction forward.

The aim is to encourage bidding and signal the seller's minimum sale price.

READ MORE: What is depreciation and why is it so valuable when it comes to buying a Block house?

In order for vendor bids to be allowed, the auctioneer must declare before bidding starts that they can make bids on behalf of the vendor, state how these bids will be made and when doing so, clearly announce it as a "vendor bid".

The amount of vendor bids allowed varies by state or territory.

In New South Wales, only one can be placed per auction but in Victoria, where The Block auctions are held, there is no limit – though in practicality, auctioneers usually limit it to one or two.

Vendor bids on The Block 2025

The practice played a huge role in 2025's auctions in Daylesford.

Host Scott Cam first raised it as a possibility during Emma and Ben's auction, which was very, very slowly climbing towards the reserve price.

Scotty feared that it would stall at $3m, leaving the couple with a measly $10,000 profit.

The couple had to put in a panicked phone call to their agent, urging the auctioneer to pause before disaster struck.

"Pause it immediately, pause it immediately!" Scotty yelled.

EXCLUSIVE: Emma and Ben in tears as heartbreaking Auction result sees house passed in: 'Feel like a loser'

The agent was then advised to return with a $3.1m vendor bid with the hope that it would reinvigorate the room.

Unfortunately, that wasn't the case – and House 1 was officially passed in.

Having learned from the panic of Emma and Ben's auction, the two remaining teams spoke to their agents before any bidding started.

Scotty helped Sonny and Alicia devise a plan, using the $50,000 lower reserve they'd won to their advantage.

They decided to start proceedings with a vendor bid of $3.05m, $100k over their reserve.

Thankfully, it panned out well. After a wait that felt like eternity, buyer's agent Frank Valentic made a late move to offer $3.06m.

EXCLUSIVE: Sonny and Alicia 'stoked' with $120k win after house sells immediately after competitor's home passes in

Just like that, House 4 sold and Sonny and Alicia made an immediate $120k profit.

"We're more than happy, it's been a tough day for everyone," Sonny reacted.

The same tactic unfortunately did not work for the final auction of Han and Can's House 2.

EXCLUSIVE: Han and Can's 'disappointment' as home fails to sell in shock auction finale

They attempted to get things moving with a $3.1m vendor bid to begin, but unfortunately the silence was deafening.

With no official bids, they too passed it in.

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Stream every episode ever of The Block for free on 9Now.