Auction.com?

6 Replies

Have any of you used Auction.com? Most of the properties say "Cash Only" and the bids usually start at $10k or so. I have noticed in the notes many of the properties say there is a reserve but when they say Cash Only does that mean the website doesn't finance? Meaning if I obtain my financing/pre-approval letter in advance will that work?

Any help is greatly appreciated.

Dan

it means you need to be a cash buyer, as in Proof of funds letter must be provided, if you registered, and won the bid, but you have to finance, they will charge your credit card, and you will be out like $2500. the starting bid is a general indication of reserve, a $10K opening is probably a reserve around $35-$45K maybe more, a $7500 opening is usually around $25k reserve. if the property is in MLS, the reserve is the list price in MLS, but auction.com may shill bid for their client to increase the final sale price, as what happened to me on the last one i purchased, it was still a deal so i didnt care. good luck.

I stay away from auctions. The deck is stacked against landing a deal and lot's of dumb buyers  with more money than common sense.

I guess occasionally you can land a deal but I find it a waste of time for me.

The online Auctions are not for the faint at heart, especially the cash only ones, many may be occupied, many times i see them in the redemption period of foreclosure, you are buying the property prior to the lender taking legal title, or buying their bid position at a foreclosure sale, and you may not know that, if you read the fine print, on some you may not be getting a clean title, or they wont insure a clean title. be careful.