Hi BP Family - I'm looking into placing a bid on a Hubzu property. I already created my profile in the Hubzu website and my realtor was wiling to submit my bid for me (apparently, I cannot submit a bid myself instead a realtor on behalf of me). But part of me feel reluctant to a bid because of the horror stories I've read online about Hubzu. If anyone had experience with Hubzu, please feel free to share. Thank you!
Son won an option on hubzu house. Auction listing specifically said financing was an option. He had prequalified with a bank ahead of time who ensured less than 3 week close (small very rural bank). Hubzu canceled sale saying cash only. Talked to actual sellers [reo] who said they had no problem with non cash sale. Hubzu still said no deal and relisted house.
Not sure why your agent thinks you must have an agent bidding on hubzu. I've always done my own bidding (haven't had a high bid accepted). I do enter my agents number on account but only so she can get a small cut. This is not necessary unless they recently changed policy.
I entered my own bid on Hubzu a couple of years ago. I sat by the screen and upped my bid as I needed to and won the high bid (by overpaying). I found a broker who let me put his number down as my representative and agreed in writing to rebate me some of the commission. You are paying the commission in the auction fees, you are paying title policy in the closing fees. We paid cash and submitted pof at the time of auction. I imagine all the REOs on Hubzu would be difficult to obtain bank financing on due to inspection issues, so they may prefer an FHA 203 rehab type loan preapproval...but that is just a guess. You could email their customer support and ask. Be sure to phone verify wiring funds instructions.
Thank you both. I will ask my agent then to give me his number so I can place a bid myself. That will be perfect so I can have control on what I bid. So I'm assuming company is legit. Feedback from the internet is that it is scammy. It would be great if you can share the process and overall experience.
I've won several HUBZU auctions on behalf of my clients. Their closing department can be difficult to deal with from a customer service perspective, but I didn't have any issues that I would consider "scammy". Good luck!
@Joe Norman Thanks, Joe! I think I just need an agent familiar with the process here in Bergen County NJ to walk me through. My agent seems not familiar. = (
@Maybelle Francisco I placed 2 bids today alone for clients on Hubzu here in NJ. It's not a hard process and your agent should not have an issue doing this for you. If they do find someone else. The main issue I have with Hubzu personally is their bots that bid prices up (from what I've heard) but mostly is the fact that the auction doesn't end when they say it's going to. It can get extended endless times if people continue to bid it up. Also remember although you may win an auction it doesn't guarantee you'll get the property at the price you put in.
You can just bid anytime you want on Hubzu. Its not a scam but its also a hard market to make money on you need to be really careful and know your market well. There are a lot of people that end up overpaying.
Have not purchased from hubzu or auction. Every time I bid prices get bid way up, not worth what an investor can pay. Might work for owner occupied. Know your market and repair cost.
I have dealt a good amount with HUBZU in the past on auctions my clients have won on properties here in Connecticut. What I would recommend is placing your bid through an agent that has experience closing deals listed on HUBZU. They will know the proper way to navigate these transactions as they are anything but cookie cutter.
Personally I have never experienced anything "shady" with them in my dealings. Any title issues were nipped in the bud when my clients lawyer did their title searches and were remedied by the sellers before closing.
@Maybelle Francisco - I won one on Xome but it was my first auction as an agent, so I can understand your agent seeming confused lol (auctions just aren't big in our area and scare a lot of buyers away, which is also part of the reason I think I got such a deal!) and there are some that I have seen where the agent has to do the bidding for you, so that can be the case (it usually says in MLS what the "rules" are.) Just let them know you'll be available on phone/text if needed and give them your max and let them do their thing. I researched a lot on here before mine and talked to another agent in my office who had done and one the one other one I've seen in our area.
Personally, I think mine had a bot (I read through everything super carefully and apparently, they can do that) and maybe one other bidder came in. It was just the bot bidding me up, I swear. But I knew my max I was willing to do and shrugged and thought, hey, not the first I've lost and won't be the last, so whatever. I still ended up under my max, the "reserve" wasn't met, but I think that was the best they got and went with it.
Also, upon all my reading, I've seen tons of people say they weren't the "winner" but got contacted later to purchase the property (maybe the other winner fell through or it was a bot?) so auctions are kinda like the wild west IMO. Do a search on the auctions and read the posts, there's lots of good information and share any with your agent. Personally, for me I'm happy my experiment was for my own sake (didn't feel like I was screwing over anyone else! lol) and now that I have that under my belt, I would encourage anyone else to try them.
However, if you want to offer to help your agent out and do it yourself, (and if you feel more comfortable being in control) I'm sure they won't mind! Good luck, let us know if you get it (and what you did/how!)! =)
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@Maybelle Francisco let me know how that works out for you. I've always wanted to bid online but have just been hesitant. Would love to hear the process when you do win a property. Good luck
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