Hubzu - I’m confused how this works.

Foreclosures
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Hubzu - I’m confused how this works.

Kyle Steinmetz
Member since 2020 · 13 posts · 9 votes

I went to an open house today that was down the road from a foreclosure property that I wanted to get a street view of. I asked the realtor at the open house if she would be interested in showing me the foreclosure down the road after her open house.... She met me down there and informed me the house was listed on hubzu which I have no experience with. Some questions I have:

-Did I need a realtor to look at this place as it looks to me like I need to submit my own offer online.

-The listing has a 5% buyers premium but doesn’t say anything about a realtor commission.

-The listing also requires a 3% earnest money which seems high to me.

Does anyone have any experience with Hubzu that can explain how this works or what I need to watch out for.

Thanks for any info

Kyle

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  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    6y

    All properties listed on Hubzu are also listed on the MLS by the same agent. The agent contracts with Hubzu to list the property based on their criteria. The MLS price is usually the reserve bid on Hubzu and not the expected bid price. You do need an agent to see Hubzu properties as most Hubzu listing agents aren't going to show you. It's in your best interests to have an agent submit the paperwork and do the online back and forth.

    The realtor commission is contained in the listing agreement and is always there. You will pay the 5% buyer commission directly. It doesn't matter what seems high or not, each property on Hubzu is differently and they have been requested more in deposits and in a credit card hold to bid to prevent fraud.

    Hubzu is fine, but the bidding is like eBay. There is no point to bidding until the last day and within the final six hours. You can set parameters to go up on bids, but it's safest to do each bid yourself. You should set a limit and stick to it. Many times, bids are won and it comes back on because bidders play games and bid too high to win and then don't want it. You may have to bid several times, it helps to have an agent who knows how it works. I hope this helps.

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  • Kyle Steinmetz
    OP
    Member since 2020 · 13 posts · 9 votes
    6y

    @Jonathan Greene thanks for the info. So let the my agent submit my bid for me, correct?

    0Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    6y

    Yes. They will still have you write up an initial contract as with any other property and they must submit that, but then they are the contact who must be online to keep bidding or set the max bid.

    [email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
    Zen and the Art of Real Estate Investing59 Reviews
    WebsiteView Page
    0Reply
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