Anyone Have Experience with Hubzu Auctions?

Question

This is my first one...any tips or advice?

Brandon Sturgill · Answer

Thanks@Chris Simmons Appreciate the insight.

Brandon Sturgill · Answer

Thanks @Matt Overbee

Brandon Sturgill · Answer

Thanks @Ann Bellamy

Matt Overbee · Answer

Yeah search the forums I gave some info on my recent experience with them on a purchase last month on someone else's post.

Feel free to ask me any questions about it.

Chris Simmons · Answer

I am dealing with a shortsale on a duplex that has a primary mortgage that is serviced by Ocwen....the company that owns hubzu.  My contract with the seller was for $80,000 but they, Ocwen, mandated it go over to Hubzu for auction.  I wanted the property and won with a bid for $93,000....all in with fees it is almost $98,000.  I have read about false bids to inflate the price and such but was able to confirm with this particular sale that all competing bids were local investors/realtors that wanted the duplex.  I talked to two of them since they own duplexes in the area.

I just lost out on a bid next to another rental of mine but have no problem letting people pay more than I am willing to.  At a minimum, it validated the price I paid on the house near it I am set to close on next week.

From what I can tell, it is a legit, but overpriced way to sell real estate.  As far as the buyer fees, who cares.  I am willing to pay $X for a property.  If the seller wants to allocate 4% plus a $300 technology fee to Huzbu, then that is less money that can go to them.  It's really the sellerscost, even though we pay it.  It just means less net $ going to the seller.

I don't really care for auctions but with a realtor, I can get in these in advance to know for sure if i want to bid on them.  With sheriffs sales and other auctions, that is commonly not a possibility and why I don't mess with them.

Ann Bellamy · Answer

Yes, my experience hasn't be wonderful.  There are a bunch of other threads on Hubzu, so do a BiggerPockets search in the upper right corner.  They also used to be gohoming.com

Brandon Sturgill · Answer

@Jean Norton  and @Bradley Gibson Thanks for the guidance. I think this reiterates what I have experienced in my research today. Much appreciated.

Brad Gibson · Answer

I agree with Jean have your patience in check because its quite the process. I bought a Triplex through Hubzu a year ago. The bidding system is pretty sketchy. They start out with a listing price and start taking bids, after the bid time period is up they'll either accept one or if they think they can make more money due to a high volume of bids they'll start the bid process over and reset the clock with a different price until they're satisfied. Also, with my experience I could only communicate with sellers through email which was also frustrating(pretty sure they're located over seas).

In the end I got a great deal for what is now a nice cash flowing property but it was an interesting ride to get to that closing table.

Jean Norton · Answer

Yes, I used to get a lot of properties from Hubzu.  At this point, I believe their prices are way too high.  I've watched properties that I bid on from a year ago and they still try to get higher prices.

The auctions are a joke.  They just recycle through them.  If you're using hard money, your hard money lender will get a little frustrated.  However, I can't say I was unhappy with any of the deals I got.  Just make sure you have your patience in check.