auction.com

12 Replies

Hello-

I'm interested to know if anyone has purchased a property through auction.com.  There are several properties being auctioned in my area, but I want to avoid any pitfalls associated with this type of transaction (title, occupancy, etc).  Any advice would be greatly appreciated!

I was wondering the same question recently. Do a search for auction.com on the forums and you will see a lot of previous posts about it. Quite a few bad responses about the site, I don't have any personal experience with it though.

Use the search function, there are lots of posts that discuss peoples experience w/ auction.com  Seems like most people were happy despite some strict timelines they try to impose.

Promotion
Apartments.com
List, Screen, Lease, Get Paid, Manage.
No Better Place to Lease Your Place
Owners rely on the #1 rental site to get the best results from their rental properties.
Get Started Now

I recently put in an offer on a house, 212k it was supposed to be H&B 1pm Monday. I was the highest and best. I WON !, lol, not. Chase bank refused my h&b offer and put it on Auction.com. I watched it, highest bid was 218k, w a 5% buyers premium. Chase rejected it and the listing agent called me back 2 weeks later, and offered it to me for the original 212k. I tried to grind them a little, they wouldn't hear of it, but the house had many offfers of close to 212k. I signed the P&S yesterday for 212k. Banks can be ******** to deal with. It will take 30k for rehab, and should fetch $340-345k.

   Has anyone done work on the houses BEFORE you actually close ? I told my realtor  to get to the current owners and see if they would allow me to commence work immediately for a cash contribution.  What kind of contract/ paperwork should i have them sign to protect myself if they agree ?

Hi Bill

I have not used auction.com. So cannot comments specifically on the website.

However, all auctions have same pitfall. Few things I do are
1. Finding full details of the property
2. Run numbers and arrive at max bid value making provision for repairs and etc
3. View the property
4. Get get carried away

Happy investing.

I have bought 3 homes through them.  They are fine to deal with but not great.  They  only give you a starting bid but that is not equal to the credit bid.  So often times they are a waste of time because the credit bid is way too high.  That being said there are defiantly deals to be had just have to be patient.  The big issues are the same as with auctions at the court house...clean title, tax liens, back taxes, and occupancy status.  I would advice going to some of the live auctions and just watching and getting comfortable with it and talking to some of the buyers.  Good luck!

@John Ewas  Great story John!!  Do you have a follow up as of today?  I'm looking to purchase a home from auction.com but trying to get has much info as possible.  Did you sell the house?  Any before and after shots?

@Pat Martin  Thanks for that nugget of information.  Did you ever do a wrote up of your experience with auction.com?  Anything I can read?  Did you come in the last minute and won?  Was it live?  I just want to get a go feel before spending my time and the 3 homes I'm looking at don't pane out. 

Closed one with auction.com after bidding 1/2 dozen. The reserve bid is meaningless when fannie mae is the owner. Fannie takes 2 weeks to decide. Then you close with cash 2 weeks later ... not for the faint heart. Any delays are fined DAILY.  But hey - if the price is right ...

Hi,

   Having started in 2010, probably appropriate times to get into real estate, the only avenue I know then was to go through auction.com.  I have done over 13 deals in span of 3 years and have stopped buying from there in last year or so, just because properties in CA( which I used to work on),  has not left any potential profits in flips.  So not interesting that way.

Otherwise, fairly decent site. But it is totally your own risk to research the properties and what you do with them. Nowadays there are different types of auctions and you need to know what type and understand before you step into the property.

Of all the 13 properties, I was bitten once, and huge ( upto 21K ) lien on property I bought and I had to pay and clear it. So that flip did just break even and no profits. All others have worked out a decent ROI.

Another reason why I stopped using this site, is back then I could bid for an auction, and could bid on any property in that auction slot.  Nowadays you have to do deposits on each property you want to bid upon.  Not fair, but its their way of doing business and they are still making it. Good for them, but I have since, gotten so many avenues to acquire properties, I don't see any greater advantage of using them anymore.

Thanks,

They are tough to deal with, they don't listen to their customers. I worked for a group that bought over 50 properties from auction.com. It seems lately most of their inventory has evaporated. There trustee sales are a joke, they create a circus like atmosphere in a local hotel banquet hall and the auctioneer will discuss ARV and tell the bidders they are missing out if it's about to revert to the bank while he is looking at the reserve price. Totally unethical at a Trustee sale.

When they first popped up with REO's on the site, it was free money in 2012. Now properties in CA are getting bid incredibly thin. Margin has vanished.

[quote]

There trustee sales are a joke, they create a circus like atmosphere in a local hotel banquet hall and the auctioneer will discuss ARV and tell the bidders they are missing out if it's about to revert to the bank while he is looking at the reserve price. Totally unethical at a Trustee sale.

[/quote]

Witnessed the same on the east coast.  The auctioneer even advanced bidding WITHOUT a bid !!  Stopped attending after I verified the sales never closed on the properties I was interested in.  Online bidding is much easier ... maybe the lender inserts bids ... WHO cares??  Set your limit and wait.  Lots of other opportunities.

My first transaction with auction.com was back in September when I bought a SFR. As others said, do your homework ahead of time. At the end of the day, the transaction worked out fine but it's a bit of a circus to get from a winning bid to a scheduled closing. Every time I contacted their customer service team I ended up speaking with a different representative. No consistency and the employees didn't seem well trained. They have all these strict rules posted about reply timelines, 24 windows for signatures, etc but were not ready themselves to meet some of these timing deadlines on paperwork.

I still browse their properties and would buy again.  It wasn't bad enough to scare me away.

Promotion
RentRedi
Smart Tech For The Smart Landlord
The Smart Way To Manage Your Rentals
Enjoy growing your portfolio without paying more for it. Unlimited units & easy-to-use apps.
Get Unlimited Units