Updated over 8 years ago on . Most recent reply
Has anyone dealt with Auction.com?
Hey guys-
Wondering if any of you have had interactions with Auction.com. I've read some of the other biggerpockets posts about peoples' experiences, but I'm looking for something more local. Any info is helpful...i.e failed bids, success stories, horror stories, etc.
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I have purchased numerous properties in Minnesota from Auction.com. I have found fewer and fewer "deals" on the website lately. I have had properties under contract that just get "canceled" after sitting in "holding" for months. Then it takes a couple months to get your 5k earnest money back and for god sakes don't forget that you had paid it at one point. Issues that I have come across recently. Is the property occupied? are they selling the property during the redemption period? Is it really even a "deal" at the purchase price. I made a lot of money buying properties off this site, fixing and selling in 2015, 2016, but I have only purchased one property off there this year and I'm not convinced it was a real "deal".
That being said the site is legit. I would use the filters and at the very least filter it down to the "bank owned" properties unless you really know what you're doing. I have always closed with their title company and got their insurance, but after looking more closely at some of the cost I think I will consider using my local title and closing company on the next one.
I shouldn't say one bad word about this site considering how much money I made off of them and Hubzu over the last 5 years, just sad that the inventory is drying up and getting more competitive. However, with sale prices up I wish I would have expanded my buying criteria a little bit so I was making money this spring.
You really can't count on a property you buy from them closing unless you have the signed contract from the seller and the property is not under redemption. Just b/c you get a "congratulations" from auction.com does not mean you have a signed contract. It can be a little bit of a frustrating process.