I was the highest bidder on Hubzu REO property today for a single family home. The reserve had not been met so we received an immediate response from them that was $15k higher.
I'm wondering if anyone knows what would happen if we let Hubzu's counter offer expire.
Will the Hubzu follow up with us so we can make another offer? Or will Hubzu turn it back to the bank for them to decide what to do with our original offer?
I am not excited to raise the offer $15k although there would still be a return on the rehab flip. Just feeling a bit greedy and would prefer to stay at my original bid.
(FYI: I was the only bidder and the house has already been on a contract when it was with the MLS. It fell through and was passed on to Hubzu.)
Thanks for any experience-sharing.
Stick to your numbers. They really don't negotiate in a traditional back and forth sense, in my experience. More than likely they'll put it back up for auction with a different (not necessarily lower) opening bid. As you experienced, even if you win the bid, they'll send a "counter" to you and all the other bidders.
Quoted from their email:
"Even though your bid didn't meet the seller's reserve price, the seller is still offering you a chance to place another bid. However, you must respond to this opportunity before 10:20 PM(EST) on 06/16/2016.
The seller is providing you the opportunity to place your highest and best bid for the property. The details of this proposal are below:"
I personally chuckle at the generosity of the seller, for offering the "opportunity" to over pay.
My experience concurs with Scott's. On a property I was actively bidding on, the process went on for months. The starting bid amount progressively gets lower over time. At some point in time, they will lower the starting price to something that's inline with market value.
Some great buys on Hubzu, but my experience with it has been SLOW.
Good luck with it
I hate Hubzu and all the other auction sites. It may be different in areas with a lot of merchandise to move, but in my area it is a way for banks to try to sell crappy houses for over-market prices. Almost everything I see on all of them ends up back on the MLS down the road. In fact, one of my houses spent 6 months on an auction site before I ended up buying it from the bank off the MLS almost a year later for nowhere near what they were setting up on the site.
Thanks for the information. I'm going to see what happens. My bid amount AND their counter offer still make for a profit at the end, in the final calculation. So, I'll sort out what's the best path and I'll follow up with you all on the results! Thanks for the help.
Don't succumb to their counter. It will go back to the auction, you just have to be patient. The last property I won on Hubzu, it went back on 4 times, and I ended up getting it for $5K less than I had originally bid up to the first time. Funny thing is on that 4th time, I almost forgot about it until about an hour before the end of auction, jumped in and only had to bid $1K higher than the previous bid to win it.
I bid on a property on Hubzu that's in terrrible condition. The reserve was not met. What are the chances that they will accept my bid? A neighbor gave me some insight into the property and I'm not sure I want it any price.