This is a common occurrence and is this is when the auctioneer will generally utilise one or more of the 3 allowable Vendor Bids. Vendor bids are used by auctioneers as an ice breaker as buyers can be nervous and reluctant to start things off. A vendor bid MUST by law be clearly announced as a Vendor Bid and is not a bid for purchase.
Will the auctioneer put in a vendor bid and will it be the reserve price?
The auctioneer will never put a vendor bid at the reserve, it is BELOW the reserve, and generally around 5% and up to 10% under as a rule of thumb, but every auction will vary dependant on vendor expectations, market feedback and sometimes dependant on how urgent the sale is. The first vendor bid may be way under the reserve, the last is generally much closer (say 5 to 10% below).
Once the reserve is met the vendor must sell it, so the vendor bid is below that figure.
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This is a common occurrence and is this is when the auctioneer will generally utilise one or more of the 3 allowable Vendor Bids. Vendor bids are used by auctioneers as an ice breaker as buyers can be nervous and reluctant to start things off. A vendor bid MUST by law be clearly announced as a Vendor Bid and is not a bid for purchase.
Will the auctioneer put in a vendor bid and will it be the reserve price?
The auctioneer will never put a vendor bid at the reserve, it is BELOW the reserve, and generally around 5% and up to 10% under as a rule of thumb, but every auction will vary dependant on vendor expectations, market feedback and sometimes dependant on how urgent the sale is. The first vendor bid may be way under the reserve, the last is generally much closer (say 5 to 10% below).
Once the reserve is met the vendor must sell it, so the vendor bid is below that figure.
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