A dummy bidder, also known as a ‘phantom bidder’, is someone who attends an auction and makes bids not intending to purchase the property. Their role is to stimulate interest and encourage genuine bidders to compete, potentially driving the price higher.
Currently in Melbourne, and as of December 2025, the practice is legal but heavily regulated. Auctioneers are legally required to clearly identify dummy bidders before the auction commences. In the Melbourne Eastern Suburbs, where competition for family homes near sought-after schools like those in Balwyn and Doncaster is often strong, dummy bidding can be more prevalent. An auctioneer might open bidding with a vendor bid – a bid placed on behalf of the seller, which *must* be declared. Following this, a dummy bidder might place incremental bids to create a sense of momentum. It’s important to realise that while it aims to encourage competition, it doesn’t guarantee a higher sale price. In 2026, buyers are increasingly sophisticated and can often identify when bidding appears artificial. Fletchers’ experienced auctioneers adhere strictly to regulations, ensuring transparency throughout the process. We emphasise clear communication to all bidders.
Dummy bidding is a tactic used to generate auction activity, but transparency and adherence to legal requirements are paramount in the Melbourne property market.