Questions about creating a foreclosure auction service

1 Reply

Hi, this is kind of an elaborate post that could potentially take advice from a large spectrum of experts, so join in the fun!

I have a small business that aggregates government real estate auction information, and provides a tool for the user to filter through this data. The site is live and people are registering, subscribing and using the site for a small monthly fee. I currently only offer service to three counties in Florida. Hopefully expand soon. 

I was thinking about... and this is where I wanted to get advice from everyone... a auction consultant service with the company since I already have the user base for it.

Service would include things such as 

  • Wealth of knowledge - Help the customer pick a relevant listing to their needs.
  • Title Research - Title research on the target property. (not guaranteed, but will be done through a title company).
  • Price prediction - consultant will complete a diagnostic to create a target bid price for the user.
  • Education - Explain the intricacies of the auction process / advice. Including government fees and taxes. Payment steps if they win etc.
  • Follow Through - Help them bid on bid day, and make sure that their payment goes through so they receive the title. 

 I spoke about this to my friend who is a real estate agent and he had mentioned that this might not necessarily be legal because giving real estate advice even though they are the ones who are purchasing the property, can somehow make my company liable. 

So I was just wondering if I could get some feedback on this, such as 

do you think it is a good idea?

A service people would use?

Is it even possible from a legal standpoint?

if so, what would need to be in place for this to work? would the consultant need to be a registered real estate agent with a broker?

Company in reference is AuctionTumbler.com

Look at renav.com, its local to CO but does many of the things you talk about.  From classes on RE auction, to having class at the auction, to a TON of great foreclosure data here in CO that you just cant get anywhere else.  I think they might also offer a service where they do bidding for you, etc.  I used to be at the same real estate office as the owner, Aaron, and he is a smart dude with a great site/service.