Auction.com Experience for a bank owned property

[Javier Acosta]

Hey guys,

Just wanted to share my experience dealing with auction.com!

So, I had my doubts about this website, whether it could really be a good option for acquiring a good deal, as there were opinions on both sides of the fence. Anyways, I found a property that I very much liked, I went and checked it out and it was in really excellent conditions, really small cosmetic details to be fixed. 

So, I go to auction.com and it was listed as "Bank owned" and it did not show a reserve. The site asks for a credit card, from which they place a $2,500 hold (temporary) so they know you are not just playing around. I put the card on the system, and it then allows me to place bids on this property. I waited up untill the last 3 minutes of the auction to place my bid, which at that moment was $75K, and when the last minute was going, I placed a bid for $85,000, which then was countered for $95K. Once again I waited untill the last 30 seconds and I placed a bid for $95K, and then I countered again for $97.5K, which ended up being the HIGHEST bid, making me the winner! Woohoo!!! My heart was going 123144565465645 beats per second at that time.

I am going to rent this house, and then refinancing again to repeat the process (BRRRR), and the numbers of this property are like this;

Sales Price: $97,500

Buyers Premium: 5% of sales price = $4,875

Cash to Close: $102,375.00

Appraised Value: $135,000

Personally, I am more than pleased as I don't have to do practically any repairs, I bought at 75% of value, the area of this property is growing at an accelerated rate,  and it is in a great location making it an easy rental. Once I refinance, I will be able to have a little over 100K to repeat the process. 

Just wanted to share my experience with auction.com, as I know there are alot of people wondering it it really works and if you can get good deals.

PS: Auction.com customer service is really goood in my opinion, I don't know why they have such negative reviews. They literally called me the second the auction ended to congratulate me and give me instructions. 

2nd PS: The reserve was not met, and the seller still accepted my bid. :) 

[Wayne Brooks]

Congratulations!  But, the time between your bid and the closing is usually where they become "lacking".  I'm guessing you opted for the "free" title insurance if you use their title co., which I always advise against.  They typically don't search for "unrecorded" liens like code violations, utilities, etc.  Reaad the section B Exclusions carefully....you will find these things, and perhaps others, excluded from the policy you receive.