Vendor Bids at Auction: How to Spot One in Queensland and How to Respond
A vendor bid is a bid made at auction on the seller’s behalf, either by the auctioneer or by the seller or their representative. In Queensland it is legal only while bidding is below the seller’s reserve price, and the auctioneer must announce it. So when you hear “vendor bid”, you know two things: the property has a reserve, and the bidding has not reached it yet.[1]
That makes a vendor bid one of the few pieces of hard information you get on auction day. This guide explains the Queensland rules, how to recognise a vendor bid as it happens, how to respond without paying more than you planned, and what to do if the property is passed in. It is written for buyers bidding in Brisbane, Moreton Bay and across South East Queensland, including buyers who have bid at auctions interstate, where the rules are different.
Key takeaways
- In Queensland, a seller can bid on their own property through the auctioneer or a representative, but only up to the reserve price, and every vendor bid must be announced.
- A vendor bid tells you a reserve exists and has not been met. It does not tell you what the reserve is: the auctioneer must not disclose that figure.
- Any seller-side bid after the reserve is reached is a false bid, and dummy bids are illegal.
- There is no cooling-off period at auction, or for a contract a registered bidder signs before 5pm on the second business day after an unsuccessful auction.
- Set your limit before the day, and decide in advance what you will do if a vendor bid is the last bid when the hammer falls.
What is a vendor bid?
“Vendor” is the legal word for the seller. A vendor bid is the seller’s side of the room putting a number on the table. In Queensland it can come from the auctioneer bidding on the seller’s behalf, or from the seller or a representative bidding in person, as long as bidding is still below the reserve.[1]
Sellers use vendor bids for two reasons. The first is to start the bidding when the room is quiet: an auctioneer may open with a vendor bid to give buyers a figure to respond to. The second is to move the price towards the reserve when genuine bidding has stalled well below it. Either way, a vendor bid is not a buyer, and it can never buy the property.
Vendor bid or dummy bid?
The difference is disclosure and timing. A vendor bid is announced, and it is made before the reserve is reached, which the rules allow. A dummy bid is a bid planted to push the price up after the reserve has been reached, whether it comes from the seller, their family or friends, the auctioneer or anyone else acting for them. Dummy bids are illegal in Queensland, and so is any vendor bid made once the reserve has been reached: the Government calls those false bids.[1]
The Queensland auction rules buyers should know
Queensland’s auction rules are administered by the Office of Fair Trading. These are the ones that matter most when you are the one bidding:
- Vendor bids stop at the reserve. Before the reserve is reached, the auctioneer may bid on the seller’s behalf or accept bids from the seller or their representative. Each vendor bid must be announced.[1]
- The reserve stays confidential. The seller sets the reserve in writing before the auction. The auctioneer may say that a reserve exists but must not reveal the amount, or disclose an estimated value.[2]
- Once the reserve is reached, the property must sell. When bidding meets or passes the reserve, the property is “on the market”, vendor bids must stop, and the seller must accept the highest bid. If there is no reserve, the property is on the market from the first bid.[2]
- Only registered bidders can bid. The auctioneer keeps a register of bidders, sights identification such as a driver’s licence before registering you, gives you an identifier such as a numbered card or paddle, and announces at the start that only registered bidders may bid.[2]
- There are no price guides. Price guides are illegal for auction properties in Queensland. A price you see while searching a listings website is a search setting, not a price guide.[1]
- The conditions of sale are read out. The auctioneer must announce conditions such as the deposit and inspection details, and may use the unsigned contract to do it. The auctioneer must also hold a current licence, which you can check online for free.[1]
You do not have to guess. The auctioneer must say when a bid is a vendor bid, usually with words such as “vendor bid” or “the vendor bids”. Listen for these announcements, and know what each one tells you:
| What you hear | What it tells you | What it means for you |
|---|---|---|
| “Vendor bid” or “the vendor bids” | The seller has set a reserve, and bidding has not reached it.[3] | The property cannot sell at this price. Your next bid only counts once it beats the vendor bid. |
| “We are on the market” | Bidding has reached the reserve. The announcement is optional, but if it is made it must be true.[1] | The highest genuine bid from here buys the property, and no more vendor bids are allowed. |
| “I’ll just refer to the seller” | The auctioneer is taking instructions, often because bidding is close to the reserve. | Bidding may resume, or a negotiation may start. Keep to your limit. |
| “Passed in” | Bidding ended below the reserve. | The seller does not have to sell, and may choose to negotiate with a bidder.[3] |
One thing a vendor bid does not tell you is the reserve itself. The reserve could be one bid above the vendor bid, or well above it. Treat a vendor bid as a signal that the seller wants more, not as a measure of what the property is worth.
A vendor bid is designed to get you bidding. Whether you should is a decision to make before the auction, not in the moment. These are the situations we plan for when IPS bids for clients.
If you are the only genuine bidder
When yours is the only hand in the air, a run of vendor bids is the seller walking you up towards their reserve. You have a choice. You can keep bidding in small increments, or you can stop, let the property pass in, and negotiate with the seller afterwards. A private negotiation gives you time to talk about price and terms instead of reacting to the auctioneer’s pace.
Bear in mind that negotiating after the auction does not bring back a cooling-off period straight away. If you were a registered bidder and you sign a contract before 5pm on the second business day after the auction, there is no cooling-off period.[4] Your preparation needs to be just as complete as if you had won under the hammer.
If several buyers are competing
With genuine competition in the room, vendor bids usually stop early, because the other bidders are doing the seller’s work. Your focus shifts from the seller to the other buyers: bid clearly, in increments you choose rather than the ones the auctioneer suggests, and keep to the limit you set at home. If bidding stalls below the reserve, expect a vendor bid to try to restart it.
If a vendor bid is the last bid
If bidding stops on a vendor bid, no buyer has reached the reserve and the property passes in. Who the seller negotiates with first is the seller’s choice: Queensland’s guidance says only that the seller may choose to negotiate with a bidder.[3] Before you leave, make sure the agent knows you are still interested and how to reach you.
Set your limit before the day
Most overpaying at auction happens in the last few bids, when the pressure is highest. Work out your walk-away price from your budget, recent comparable sales and your finance approval, and write it down. Use the IPS purchase calculator to add stamp duty and buying costs, so your limit is a price you can actually pay.
If bidding ends below the reserve, the property is passed in and the seller does not have to sell.[3] That is often the start of the negotiation rather than the end of it. If you reach agreement within 2 days of the auction, there is no cooling-off period; if it takes longer, a cooling-off period applies.[1]
Negotiation can also happen in the middle of an auction. At the auction of a townhouse in Mount Coolum on the Sunshine Coast, bidding paused at $1.251 million while the seller was pursuing $1.4 million. It was not passed in. Our clients negotiated for about 90 minutes, agreed at $1.28 million, and the auction resumed before the hammer fell on the third call. The Mount Coolum success story has the full account.
The lesson from both situations is the same: the bidding is only part of the auction. Be ready to negotiate calmly, with your limit and your conditions already decided.
At a Queensland auction you sign the contract on the spot, and there is no cooling-off period, even if the property fails an inspection, you change your mind or you cannot afford it.[1] So the work has to be done before you bid:
- Finance. Have your finance approved and understand any conditions attached to it. An auction contract will not wait for your lender.
- The contract. Get a copy early, have your solicitor or conveyancer review it, and ask the agent about any late changes before you register.[1]
- Inspections and searches. Arrange building and pest inspections, a title search, a land tax clearance search, and a pool safety inspection if there is a pool.[1]
- The deposit. Ask the agent how much deposit is required and how it must be paid. A personal cheque, bank cheque or deposit bond is usually accepted.[1]
- Registration. Register before bidding starts, and bring identification such as your driver’s licence.[2]
- Your limit and your plan. Set your walk-away price at home, and decide what you will do if the property passes in.
If you win and then cannot settle, you can be liable for your winning bid, the cost of re-auctioning the property, and any shortfall if it sells for less next time.[1] Our earlier guide to preparing to buy at auction covers finance pre-approval and the deposit in more detail.
If you have bought at auction in Sydney or Melbourne, Queensland’s vendor bid rules will feel different. Here is how the three states compare:
| Rule | Queensland | New South Wales | Victoria |
|---|---|---|---|
| Who can make a vendor bid | The auctioneer, the seller or the seller’s representative[1] | The auctioneer only[5] | The auctioneer only[6] |
| How many | No number is set in the Government’s guidance; vendor bids are allowed only below the reserve | One | No number is set on Consumer Affairs Victoria’s page; the auction rules must allow them |
| How you find out | Each vendor bid must be announced | Announced before the auction, and again when the bid is made | Set out in the rules displayed before the auction, announced at the start, and announced when each bid is made |
The practical difference is that in Queensland you may hear several vendor bids in one auction, and a vendor bid can come from the seller’s representative in the crowd as well as from the auctioneer. If you are relocating, our guides for buyers moving from Sydney to Queensland and moving from Melbourne to Queensland cover the other differences.
Auction bidding is one of IPS’s core buyer’s agent services. We assess the property and its comparable sales before the day, help you set your limit, and then bid for you, so the auctioneer is dealing with someone who knows the rules and is not emotionally invested in the result. You will need to be nearby to sign the contract once the property is secured.
For first home buyers in Upper Mount Gravatt, IPS handled the bidding and secured a three-bedroom home at auction in September 2023 for $987,500. You can read how in the Upper Mount Gravatt auction success story.
Auctions are not right for every purchase. For investment properties we usually prefer private sales, where there is more room to negotiate terms and less risk of paying an emotional premium. We work for buyers across South East Queensland, including Moreton Bay, Brisbane and the Sunshine Coast.
A vendor bid is the seller’s bid. In Queensland it is legal only below the reserve, and it must be announced. When you hear one, the property is not yet on the market. Use it as information: it tells you the seller wants more, but not how much more. Decide your limit and your plan for a pass-in before auction day, and the auctioneer cannot push you past them.
This article is general information only, current at October 2026. It is not legal, financial or tax advice and does not consider your circumstances. Check the rules for your purchase with your solicitor or conveyancer before you bid.
If you are bidding at an auction in South East Queensland and would like someone experienced in your corner, book a time with Tim Allen to talk through the property and your strategy.
- Queensland Government — Buying property at auction (updated 14 October 2024)
- Queensland Government — Auctioning a property (updated 1 July 2026)
- Queensland Government — Selling by auction
- Queensland Government — Cooling-off period for residential property contracts
- NSW Government — Bidder’s guide
- Consumer Affairs Victoria — Buying property at auction
Are vendor bids legal in Queensland?
Yes, within limits. Before bidding reaches the reserve price, the auctioneer can bid on the seller’s behalf or accept bids from the seller or their representative, and each vendor bid must be announced. Once the reserve is reached, the property is on the market, and any further bid for the seller is a false bid, which is illegal.
How many vendor bids can a seller make in Queensland?
The Queensland Government’s guidance does not set a number. What it limits is timing and disclosure: vendor bids can only be made before the reserve price is reached, and each one must be announced. That is different from New South Wales, where the auctioneer can make only one vendor bid for the seller.
Does a vendor bid tell me the reserve price?
No. It tells you that a reserve has been set and that bidding has not reached it, but the auctioneer must not disclose the reserve amount. The reserve could be just above the vendor bid or well above it, so treat a vendor bid as a signal that the seller wants more, not as a guide to value.
Is there a cooling-off period if I buy at auction in Queensland?
No. If you are the successful bidder, you sign the contract on the day and there is no cooling-off period. The same applies to a contract a registered bidder signs before 5pm on the second business day after an unsuccessful auction. Have your finance, inspections and legal advice done before you bid.
What happens if a vendor bid is the highest bid?
If bidding ends on a vendor bid, no buyer has bid enough to meet the reserve, so the property is passed in. The seller does not have to sell and may choose to negotiate with a bidder. Tell the agent you are still interested and how to contact you, and decide your limit before those talks start.
Can a buyer’s agent bid at auction for me?
Yes. A buyer’s agent can register and bid on your behalf. At IPS Buyer’s Agents, auction bidding is part of our service: we help you set your limit beforehand and then do the bidding on the day. You will need to be nearby to sign the contract once the property is secured.