All Forum Posts by: Oscar Olaussen

Patrick,
I believe you are correct. I have bought a few homes on Hubzu and have noticed the same.
Not as much during the Auction style listing as I hardly ever show interest in a property with a Hubzu Premium. That is money out the window and all the way to India.
How ever, when Hubzu has failed on the auction style, the property goes on a Traditional sale, TRNL and now I see "bogus" and "phantom" offers made. If you make offers on a number of properties, you will some time notice the same ID name making offers above you on the same properties.
It is also very funny, I have bought Hubzu properties 3-4 times when not being even close to the highest offer!!! 2 times, just before a deadline, the highest offer has also disappeared and I become the highest. Coincident??? Don't think so. Just Hubzu's selling practice.
There are "good deals" to be made on Hubzu, but you need to know the system and you DO need to know the property. The have no ethics. Will not disclose KNOWN defects, such as missing kitchen, stolen A/C unit, Chinese Drywall, roof leaks etc, ect.
Not even when they have been informed through a previous inspection, they will disclose it to you.
We tested one of their homes positive for Chinese Drywall, but no way they would pass that over to any bidders. I walked from the deal, but even when I made a later offer and requested info of any known Chinese Drywall, they denied the property had CDW.

Thanks for your reply Scott. I get that.
How ever, is it the BPO that is set so wrong, is it the "Auction style/Best offer" system that doesn't work very well, or is it just plain stupidity of banks and asset managers that cause so many of the properties to be sold at "lowest possible price".
I love it and make good money on every Hubzu deal, but from a bank's point of view, it just doesn't make sense at all to me.

As we speak, I just got another ridiculous counter from Hubzu (the bank). Will not even counter, but reject. This property will then relist and I am pretty sure I will buy it for less than my original offer. Does that make sense?

I have a bought some properties on Hubzu, and as many of you have stated, you have to be patient to get a good deal.
After over a year watching and dealing with them, I can still not figure out their business model. What I have seen so far, it just doesn't make sense to me.
We would all think the objective for the seller is to get the best possible price for a property, but as far as I can see, there is no logic in their strategy.
Does anyone here have some inside knowledge or facts of their business model???
And who are these people who run the actual sales of the homes? Failed used cars dealers????
My last deal on Hubzu and as all the others, have happened as follows:
Property listed for $149.900. Minimum bid: $105.000 Result: No experienced investors are bidding as we do not want to pay the Premium.
Property relisted for $144,900. Minimum bid still: $105.000. Some amateur bid $122.000. (A total of $127.000 incl; the Premium). Hubzu does not accept the bid and the property now goes to "Highest Offer" and with no Premium.
Highest Offer listing has now a starting offer at $88.000 A few low ball offers comes and after watching it for a couple of weeks, I offer $100.000. A new offer comes in at $112.000 and I go to $110.000. One week later, Hubzu counter me with $140.000!!!!
Wow, what a deal!!!!!! I reject and the listing is reset with no offers. So here we go again, starting all over. Long story short, I now offer $89.000 and 3 weeks later Hubzu (the bank) accept.
Like I said, ALL my deals with Hubzu have gone down the exact same way. Who in their right mind came up with this business model????
Does anyone here have some inside fact and knowledge of Hubzu sellers???

Thanks,