Anyone ever purchase from Auction.com ??

Question

BP,

Anyone familiar with auction.com? Have you bought from the site? I assume it is similar to a sheriff sale but just online. Any success? What is the process?

The reason I ask is there was a proeprty (REO) on the MLS but it was in the owner occupant period. I reached out to the realtor and she explained that the property is now going to auction. Any reason why?? vs just leaving it on the MLS.

I apprecaite all of the help and the advice.

Ron Flatt · Answer

Yes, if the property has not met the reserve, they will bid against you.  the first property I bought there, i was outbid with 2 minutes to go, and i let it go.  I was notified that I was high bidder and they took my bid, for the property.

You have to realize that sometimes the banks will put a reserve to get more money back, but if it was an insured property, they will go back to freddie mac or fannie mae.  If it is close, I think they will take your bid, because they do not need the problem of turning to many properties back to the govt insured mortgages.

Ron Flatt · Answer

I have bought two from auction.com.  It is a little bit of paperwork, but all done electronically.  I do not have a problem using their title for closing, but I do buy the title insurance.  In Texas, it is not that difficult to get a tenant out, you would need to check with your state.

I just finished purchasing one yesterday.  I was notified about 15 minutes after sale.  I was told I would be getting an email with instructions on where to send what documents.  We have a proposed closing date of Aug. 1st.

I have also bought from Hubzu.com, which seems to be a little easier and they do not bid against you.

I have also just made straight up offers on Castlerock for REOs.

Make sure you have looked at the properties, if you get the opportunity look inside, (may not be available on a tenant occupied).  I was not a successful bidder on one close to me, but the lady was checking her mail when I drove by.  She invited me in to look around and apologized because of all the boxes.  She was in the process of moving... I would never go up and ask if I could look in the property, but it is different if you are invited.

Good Luck

Erica Cepeda · Answer

Hi Tom,

To add to Ron's message from a few months ago, auction.com does not bid on ALL properties on behalf of the sellers but they do step in if the amount is close to reserve. Once reserve is met, they no longer bid.

The majority of the properties have a reserve amount but even if you do not meet the reserve you can still be declared the winning bidder, your offer would be subject to seller confirmation. You can get many good deals from this site, but as Ron said, make sure you read all the info on the property and the sites terms and conditions.

Sam Shueh · Answer

These days the lender is catching on. They want the listing agent on MLS and bid on these sites. Buyer needs to pay 4-5% and put their credit card down. You win the bids don't want it, they charge you a penalty and give to the next highest bidder. The buyer agent still gets something like 1-2% in our area. You still need to initiate a real estate contract and sellers will clear the title, liens but home is selling as is with no inspection, warranty implied.  Because it is online bidding there are often many offers and once the expiration is up, the clock continue ticks until your offer is way higher than next person.  That can go on 2 hours or longer.... Not for those with heart problem.

John Jessie · Answer

I have purchased one house on Auction.com and preparing to bid on another. For the first house, I either had competition or the bank was bidding against me - I suspect the latter. However, the bid increments got smaller after we reached a certain point (i.e., started out at $10,000 increments: $5,000; $2,500; $1,000; $500; etc.) This gave me the sense that as the increments got smaller, we were approaching the bank's reserve. Anyone else have a similar experience? Just feel like it may be one way to possibly "read" the folks bidding for the bank.

Dan Rosenberger · Answer

There are two types of properties there.  Some are essentially advertisements for foreclosure sales, such as sheriff sales or trustee sales. The other are bank owned properties. I have gotten both types of properties, but often the bank reserve price is too high for it to make sense for an investor. Never bid more that what yields an adequate profit.

Jassem A. · Answer

Auction.com is too accessible. Usually can get better deals at the courthouse steps especially if the property is only advertised in the local papers.

Tom Doherty · Answer

@Ron Flatt

Thank you for your response, very helpful.

When you said Hubzu doesn't bid against you. Auction.com will bid against your bid?

Anyone ever purchase from Auction.com ??

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