Hubzu; my experience

[Jeff Sprunger]

I thought I would add my experience with Hubzu.  I am currently under contract for a property listed thru Hubzu.  This property is literally half a block from where I live, so I walk by it everyday.  there was a sign in the yard with Hubzu info on it.  I could see the property listed on all the RE sites (Trulia, Realtor, etc) and it was listed for $28,000.  It is a SF, 5/1, 2 story, fenced back yard, full basement.  I know it was vacant (very apparent) plus I saw the family moving out back in Apr, 2016.  On one of the websites, I saw a link for making a bid, so I clicked it.  the starting bid was $19,000.  I thought, WOW! I paid $70,000 for my 3/1 and there is a house that just sold 2 months ago, 5 doors down from this auction house that just sold for $89,900 (4/2), So I thought there might be an opportunity here.  I bid!  I was the only person to do so.  I didn't meet the reserve and that was that.  I got an email stating that they were evaluating my bid, blah, blah, blah...a few days later, I get a counter offer (via email) for $25,000, take it or leave it; no negotiations.  I ran my numbers again...slam dunk!!! The house needs $9000-12,000 in upgrades/repairs, depending on my finishes.  We are in escrow now.  In NY, a buyer or seller must be represented by a lawyer for any RE transaction.  We are waiting for the title work to be complete.  We are using their title company.  My lawyer states that title companies are basically the same and we can always back out based on what they produce.  The earnest money was only $750.  That's the gist of it.  I will post more once we close.  Closing set for 20 Jan.  Just like another guy stated in another post about Hubzu; do exactly what they are asking, in the timeframe they request...which we have.  I haven't had any issues yet!  All over email, never called anyone.

The kicker; on the way home from work last night, I noticed a beat up U Haul truck parked in the Auction house driveway (remember, I live around the corner), so I decided to investigate.  2 guys had a mountain of garbage bags piled up behind the truck, throwing them in.  There was a lot of junk in the house and the basement was full of stuff.  The bank hired these guys to go in and clean it out.  WOW, my 2 teenage boys are very happy about this. :)  I'll go in this weekend to see if anything important (read: copper plumbing) is missing. 

Caveat:  you need a licensed Realtor involved with the process.  If the property is vacant, you can inspect it.  Just click on the Bid button and as you are going thru the process it will ask if you have inspected the property.  Click NO, the bid process stops and it will give you a phone number for your Realtor to call to get a code.

Keep ya posted!