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Buying from online auction site HUBZU

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Shawn M.

Real Estate Investor from New Haven, Connecticut

Sep 23 '12, 02:44 PM


Has anyone out there used the REO auction site HUBZU to purchase a property? They like like they have great deals but I haven't been able to get anyone from their customer service on the phone so I'm concerned that this may be a scam site.

Does anyone have any experience with HUBZU.com



Uwe S.

Real Estate Investor from Dublin, Ohio

Sep 23 '12, 03:03 PM


Owner of this site is Altisource, I know some other topics here about this company. They have also another website but don't know the name.

-Uwe



J Scott Moderator Donor

Real Estate Investor from Ellicott City, Maryland

Sep 23 '12, 03:38 PM


I believe these are the same people that own GoHoming.com (it may even be the new name for that site)...do a search on here for GoHoming and you'll get more info.



Medium_lishproplogoJ Scott, Lish Properties, LLC
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Carl Randal

Real Estate Investor from Huntsville, Alabama

Sep 23 '12, 04:05 PM


My experience was with GoHoming (which has morphed into HUBZO). I needed a Realtor to make the bid, they required EMD of $1K (if they accepted your offer). The house I looked at had the kitchen and bathrooms completely gutted, water damage and was a general wreck. I offered about $55K of their asking price ($78K) which they rejected; however, 6 months later the house ended up selling to someone else for about $52K. Bottom-line, I think they are for real, but every property is different and their rep on the ground can either make the deal go quick or make it last longer.



Scott Fey

Condo Investor from Chicago, Illinois

Sep 23 '12, 07:28 PM


I have purchased from this site before (when it was gohoming.com - they just changed the name to hubzu.com). It is just a online auction site, you are still buying through a broker and from a bank (usually). Completely legit.



Uwe S.

Real Estate Investor from Dublin, Ohio

Sep 23 '12, 11:50 PM
1 vote


Originally posted by Carl Randal:
... I offered about $55K of their asking price ($78K) which they rejected; however, 6 months later the house ended up selling to someone else for about $52K. ...

I love this irrationality :).

-Uwe



Rete Hender

Mc Keesport, Pennsylvania

Nov 18 '12, 09:56 PM


It is just a online auction site, you are still buying through a broker and from a bank (usually). Completely legit.But you need to be careful when buying you need to visit the home before bidding they don't show you everything in the photos just the eye catcher one.Do your research on the area also crime rate,etc .When a house is so cheap makes you wonder........



Brian Wall

Real Estate Investor from Santa Fe Springs, California

Nov 18 '12, 10:12 PM


I recently purchased a property from GoHoming.com which was the predecessor to Hubzu.com

First of all, it is totally legit and for real.

It took me resubmitting an offer (I am an agent) several times to get the property. You definitely need to have patience.

From what I have observed, here is what I think is happening.
Buyers/agents go to the site, and place a bid, based on the pics and the comps in the area, without seeing the property. They bid high enough to get the highest bid. Then, they get their offer accepted. Then they go out the see the property, and see it is REALLY BAD! (the house I ended up getting was totally gutted, and had a bad "flow"). So, the buyers seeing a crappy property either cancel completely, or they try to ask for a credit, which they don't get. (why would the bank/seller give a credit, they have other buyers waiting in the wings). Eventually, bid goes low enough that somebody with enough patience actually buys it.

Hope that helps,
Brian



Medium_394x122_ie_logoBrian Wall, Investor Experts, Inc
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Brian Burke Verified

Real Estate Investor from Santa Rosa, California

Nov 19 '12, 10:19 PM


I've bought a few, and Brian Wall is right. It takes patience. Almost every one that I bought I was not the highest bidder, but got it after the highest bidder backed out.

Sometimes you are the high bidder, but don't meet their reserve price, so the auction ends with no sale. Then they later re-auction it and the cycle repeats. Some of these we've bid on for months before the reserve price gets low enough for our high bid to stick. Crazy.



Medium_praxisBrian Burke, Praxis Capital, LLC
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Mark Yuschak

Real Estate Investor from Grand Blanc, Michigan

Nov 20 '12, 05:25 AM


I have been bidding on multiple properties through hubzu.com (formrely gohoming.com).

Most of their inventory is quite distressed. For a rehabber, they can be a great source of potential deals.

Their auction process is pretty lousy, in my opinion. For example, I was the highest bidder on a property at $52K. The reserve was $55K. After the auction ended I received a system-generated email that I did not win because the reserve was not met. The following day I got a call from their customer service department advising me that the house will be coming back on the market in 5 days and to immediately resubmit an offer for $49K so that the AM can immediately review it and accept it. Even though I was apprehensive, I did. That bid sat out there for 6 days and someone else came in and bid 59K and got it.

The site shows the property as "Under Contract". I have to assume it was bid up by someone who has not seen the property since (like mentioned), all the pictures make it look like a real nice home. Nowhere is documented that there's 18" of water in the basement or have mold!



Susan Prins

Hudsonville, Michigan

Nov 27 '12, 03:36 PM


I want to bid on a property on HUBZU but I am concerned about acouple of things:
1. The property I want to bid on is occupied and it is buyers responsibility to obtain possession- Any experience out there with this? I doubt they will just up and leave when I tell them I just bought their home.
2. Should I order title prior to bidding or has there been any title search on the property already?
3. What kind of Deed is obtained with the purchase? Need to know if I will have a problem selling again if I do not obtain a warranty deed.

As you can tell I have never bought properties this way and I am very leery. Anything you can tell me about the process woudl be helpful.

Respectfully,
Sue



Braden C.

Real Estate Investor from Bradenton, Florida

Nov 27 '12, 03:53 PM
1 vote


I've snagged a few deals from altisource which is now hubzu. I closed one last week which was my first in a few months but everything went very smoothly. It was listed for $58k, we offered $50k and they accepted. We wholesaled it for $54k and it closed within 3 weeks of the offer being accepted.



John H.

Massachusetts

Dec 11 '12, 04:39 AM


braden, when you put in your offer, how long did it take to hear back? I submitted an offer on one that had a "listing price" not an auction. They updated the site to show my current offer and it says:

Time Remaining: No Limit - Best Offer

I had to select 7 or 14 days for the my offer to expire, I'm wondering if they'll wait the full 7 days to see if they get a higher bid before they come back and accept/reject mine.


Edited Dec 11 2012, 04:46 by John H.


Marc Bodinger

New York City, New York

Dec 11 '12, 06:27 AM


Does anyone have recommendations on the best auction sites/companies for commercial properties besides the one discussed in this thread?



Tony Salazar

Rehabber from Corona, California

Dec 11 '12, 08:14 AM


I have purchased a handful through Altisource (Now Hubzu) over the last three years or so. As of today there is a minimal amount of properties if any available were I have purchased (Riverside, Corona, Upland, Ca).

Timing was everything, from being the first cash offer in and getting my offer accepted.
As well as watching a property go from pending to active then quickly getting my offer in and accepted.

The benefit with their platform is you can track your interest list.

The Cons are when properties just get listed they typically add a premium that buyer has to pay.

If you get one accepted be prepared to deal with customer service in India from start to finish.



Glenn Pelt

Multi-family Investor from Pawcatuck, Connecticut

Jan 02 '13, 09:15 AM


I have used them mainly for MLS listed properties. They have been quick to respond to my offers. Generally within a few hours. It does take a lot of back n forth as they only usually come down about 1500 off list price then 500-1000 after each subsequent counter offer you put in. But the listed properties have been priced very good so there is not much room to negotiate. Also like the fact that I can put in the offer myself without needing my agent to do it.



Will Sifert

Metairie, Louisiana

Feb 21 '13, 02:10 PM


Originally posted by Shawn Mohovich:
Has anyone out there used the REO auction site HUBZU to purchase a property? They like like they have great deals but I haven't been able to get anyone from their customer service on the phone so I'm concerned that this may be a scam site.

Does anyone have any experience with HUBZU.com

My experiences so far have been extremely frustrating and it comes across as a mickey mouse operation. I placed a bid higher than the "current high bid" about an hour before the auction was scheduled to close earlier today. I checked the auction a few hours later to see if I won and instead of it saying the auction had ended it is now saying " Time Remaining: No Limit - Best Offer".

So it went from having a set auction end time earlier today and saying "Highest and Best" to now it's "No Limit - Best offer". WTF ? If you advertise the auction is going to end at a certain time them it should be over at that time. It's not like they didn't meet a reserve, my bid was much OVER the listing price.

My frustration doesn't end there. I looked through their site for an explanation of how this could have happened and there is none. I then tried to speak with someone through their live support chat window, after wasting 10 minutes speaking to an outsourced $2 an hour worker from India who knows nothing I then tried to locate a phone number. I called their 800# and there is no option to speak to a live person, all recorded messages and voice mail. I then sent an email to their support email address just to get an auto reply back telling me to go to their live support area (live chat and #800 number). So around and around we go.

It's not like I am trying to ask them some trivial question. I am an investor who is trying to find out if I won the auction and if not why and how it works. I am trying to spend money on THEIR site.

When I can't reach a human who actually works for the company on the phone to simply assist me with the purchase of a house through their site, then to me that wreaks of a mickey mouse operation. I will not waste any more time using this site in the future.



Will Sifert

Metairie, Louisiana

Feb 21 '13, 02:15 PM


Originally posted by Tony Salazar:

If you get one accepted be prepared to deal with customer service in India from start to finish.

GREAT, so if I did win this auction, I will continue to have to deal with india customer support, which knows nothing and has to stick to a script. For a site that claims 65,000 houses sold and an easy way to buy and sell houses, they leave a LOT to be desired.

I hope the banks take notice and stop using you them, but I know that is going to be wishful thinking. In the future if I come across a property that I am interested in that is listed with Hubzu I will just skip it.



Carlos Flores

Real Estate Investor from Dallas, Texas

Feb 21 '13, 02:40 PM


Hubzu drives me crazy as well. I looked a property a couple of weeks ago. They called it a 3 bedroom. Someone had slapped up a makeshift wall half way down the one car garage (imagine a real field day for inspectors). MLS list price was about $10k too high, even for a two bedroom. It was bid up $2k below list. Pics were great. Bet the winner hadn't seen the inside. I probably need more patience with this site as well if I want to capture a good deal.



Medium_dreamstime_l_17553651_-_copy_crCarlos Flores, Stronger Communities Alliance, LLC
E-Mail: [email protected]
I pool investor funds together to acquire apartment complexes


Xin Liu

Plano, Texas

Mar 21 '13, 06:22 PM


they have very limited resources. communication is going to be a nightmare. they almost never pick up your phone, not reply your email no matter how urgent the issue. It really drives you crazy. Sounds like a company in India.



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