Should I use Auction.com to buy houses

21 Replies

Im looking for anything with a clear title. I don't mind foreclosures or bank own. Id rather do online auctions versus in person. 

I guess my biggest concern is getting screwed over on a deal. So my question would be how safe is auction.com, and what would be the areas I need to be careful 

We have bought 2 from Auction.com and had good luck with both of them.  The first one took a while to close, but no other problems.   Our experience was great and would do it again.  Good luck!

. I also loved auction.com, i bought several thru there a few years ago,  before the market heated up. I loved em so much I took one of their for sale signs and put it in my office,  haha.... good prices, fast close,  clear title (for the ones I bought) and no BS. Then the market got strong and now their REO deals are not at all competitive. It was great while it lasted!
Originally posted by @Nicky Reader:

. I also loved auction.com, i bought several thru there a few years ago,  before the market heated up. I loved em so much I took one of their for sale signs and put it in my office,  haha.... good prices, fast close,  clear title (for the ones I bought) and no BS. Then the market got strong and now their REO deals are not at all competitive. It was great while it lasted!

Also now the market is crazy so i can reveal a glitch I noticed. During the pre-auction phase, if I put down a bid and then a 2nd bid to outbid myself, they counted that as a "multiple offer" situation, took it offline and said "highest and best".. i just stuck with my 2nd bid and I would win. I thought I was some kind of uber hacker when i figured that out (purely by my own incompetence originally though) but it probably no longer works.. maybe it really was a legit multiple bid situation, but it always seemed to work for me. Also im not even sure they have preauction bidding anymore.

Originally posted by @Terrell Garren :

5 times or so and closed in 30 days on all of them.  Loved auction.com until the secret was out and the big-fund guys showed up. 

 That sounds like a normal close time for a house. Is it even worth using it now that the "big-fund guys" are now a part of the picture?

Originally posted by @Nicky Reader :

. I also loved auction.com, i bought several thru there a few years ago,  before the market heated up. I loved em so much I took one of their for sale signs and put it in my office,  haha.... good prices, fast close,  clear title (for the ones I bought) and no BS. Then the market got strong and now their REO deals are not at all competitive. It was great while it lasted!

How much did the REO deals change that you saw?

 

Originally posted by @Nicky Reader :
Originally posted by @Nicky Reader:

. I also loved auction.com, i bought several thru there a few years ago,  before the market heated up. I loved em so much I took one of their for sale signs and put it in my office,  haha.... good prices, fast close,  clear title (for the ones I bought) and no BS. Then the market got strong and now their REO deals are not at all competitive. It was great while it lasted!

Also now the market is crazy so i can reveal a glitch I noticed. During the pre-auction phase, if I put down a bid and then a 2nd bid to outbid myself, they counted that as a "multiple offer" situation, took it offline and said "highest and best".. i just stuck with my 2nd bid and I would win. I thought I was some kind of uber hacker when i figured that out (purely by my own incompetence originally though) but it probably no longer works.. maybe it really was a legit multiple bid situation, but it always seemed to work for me. Also im not even sure they have preauction bidding anymore.

 Ill keep that in mind and give it a try and let you know if it still works. Thanks for the tip. 

Originally posted by @Caleb Ham :
Originally posted by @Nicky Reader:

. I also loved auction.com, i bought several thru there a few years ago,  before the market heated up. I loved em so much I took one of their for sale signs and put it in my office,  haha.... good prices, fast close,  clear title (for the ones I bought) and no BS. Then the market got strong and now their REO deals are not at all competitive. It was great while it lasted!

How much did the REO deals change that you saw?

 

They just got really expensive (and less common of course), like they got better at determining the exact price of ARV-repairs, so there is no wiggle room for a good BRRRR, or flip... It probably still makes sense for institutional or "need a deal now/1031" type buy-and-hold buyers, but not for me.... I have found better deals off market or through the sheriff sale (before it becomes REO) ... then again I am extremely conservative when I buy, so maybe I am just too picky.

Also in Ohio at least, this was for bank owned REO, not when they are auctioning off the initial foreclosure as PSO ("private selling officer") which is basically taking over the sheriff's role. In that regard the price is set by appraisers hired by the foreclosure court.

Updated 4 months ago

Updated to add, if the price is right and I can get clear title, I would absolutely still buy from them. Its just my own market is incredibly hot, so the prices for REO have gone up accordingly.

Originally posted by @Caleb Ham :
Originally posted by @Terrell Garren:

5 times or so and closed in 30 days on all of them.  Loved auction.com until the secret was out and the big-fund guys showed up. 

 That sounds like a normal close time for a house. Is it even worth using it now that the "big-fund guys" are now a part of the picture?

My opinion only - They tend to bid 95% of market value on 20 year old or newer 3BR/4BRs in good locations.  Very difficult for small investors and owner occupants to compete with that.  I'm thinking they make their money on economies of scale, efficiency and marketing.  Then they rent for top market rates.  Small investors can still compete for older homes, 2BRs or properties requiring a lot of work.  Subsequently, you have small investors competing for a reduced piece of the market and driving prices up.  I bet the big-fund guys literally own 000s of properties in the greater Charlotte area and are sitting on a gold mine if they ever decide to sell at the top of the market.  Who knows when/what that will look like. 

 

Originally posted by @Nicky Reader :
Originally posted by @Nicky Reader:

. I also loved auction.com, i bought several thru there a few years ago,  before the market heated up. I loved em so much I took one of their for sale signs and put it in my office,  haha.... good prices, fast close,  clear title (for the ones I bought) and no BS. Then the market got strong and now their REO deals are not at all competitive. It was great while it lasted!

Also now the market is crazy so i can reveal a glitch I noticed. During the pre-auction phase, if I put down a bid and then a 2nd bid to outbid myself, they counted that as a "multiple offer" situation, took it offline and said "highest and best".. i just stuck with my 2nd bid and I would win. I thought I was some kind of uber hacker when i figured that out (purely by my own incompetence originally though) but it probably no longer works.. maybe it really was a legit multiple bid situation, but it always seemed to work for me. Also im not even sure they have preauction bidding anymore.

Ha! In 2009 when HUD sales were booming, I bid $85K on nice 3/2.5. HUD declined and 48 hours later reduced the minimum price because the house had not sold. I bid $83K and got it. You gotta love the government.

 

This post has been removed.

Originally posted by @Jonathan Craig :

I'm sorry.  I'm a new investor and i was looking into foreclosed properties.  What is a sheriff sale? 

. In ideal foreclosures, all the liens on a foreclosed property need to be removed so someone can buy it without worry of old debts or problems. My state (Ohio) does this via a sheriff sale, which is basically the "courthouse steps" auction. If the bank buys it at the auction, it becomes a bank owned REO, which usually gets auctioned again. However, anyone with the $ can bid. The process has its risks (redemption periods, bad service, unrecorded liens, etc) but is one way to get discounted property. Each state is different, I only know how Ohio does it.

 

I bought three SFRs at different trustee sales run by Auction.com in Riverside County, CA. in 2013-14. I hated their format. Rather than quick open outcry like all other posting companies, they used a traditional auctioneer format that pimped bids and gave too much time to all the larger companies with guys on their phones taking directions from offsite. The deals were fine, but some tactics playable at the courthouse steps were less effective with Auction.com.

@Caleb Ham

We buy many homes per month in multiple cities from auction.com and every transaction has been pleasant. Their customer service is great and their VIP buyer program is even more amazing.

If your main concern is getting screwed then really your risk with auction.com is about the same as anywhere else you could buy from.

In other words, if you don't do your due diligence up front, don't go see the houses and don't get title insurance, then yeah you're more likely to get into a bad deal for you.

With that said, there are certain things to keep in mind when buying from online auctions. Some houses don't have interior access because they might still be occupied, some auctions come with a buyers premium fee that gets added to the final price, and sometimes you will have to pur down a deposit to be able to place bid. Aside from that the process is just the same as buying from anywhere else.

Good luck!!

Originally posted by @Terrell Garren :

Ha! In 2009 when HUD sales were booming, I bid $85K on nice 3/2.5. HUD declined and 48 hours later reduced the minimum price because the house had not sold. I bid $83K and got it. You gotta love the government.

 


After reading yours I had to mention mine- in 2015 I bid $95k on a HUD house, they came back and said they had to have $106K to sell the house. I told my agent to go ahead and have them send the paperwork for $106K. They ended up sending him back the contract for $95K which we accepted and they never mentioned it again. Ended up closing and getting the house for $95K! Yes, Gotta Love the Government!

 

Originally posted by @Nicky Reader :

Also now the market is crazy so i can reveal a glitch I noticed. During the pre-auction phase, if I put down a bid and then a 2nd bid to outbid myself, they counted that as a "multiple offer" situation, took it offline and said "highest and best".. i just stuck with my 2nd bid and I would win. I thought I was some kind of uber hacker when i figured that out (purely by my own incompetence originally though) but it probably no longer works.. maybe it really was a legit multiple bid situation, but it always seemed to work for me. 

Interesting.  I am going to try bidding against my spouse.



 


Originally posted by @Alex G. :
Originally posted by @Nicky Reader:

Also now the market is crazy so i can reveal a glitch I noticed. During the pre-auction phase, if I put down a bid and then a 2nd bid to outbid myself, they counted that as a "multiple offer" situation, took it offline and said "highest and best".. i just stuck with my 2nd bid and I would win. I thought I was some kind of uber hacker when i figured that out (purely by my own incompetence originally though) but it probably no longer works.. maybe it really was a legit multiple bid situation, but it always seemed to work for me. 

Interesting.  I am going to try bidding against my spouse.

That made me laugh.  To clarify, this glitch (if it even was one) was only during a "pre-auction bid" phase where they accepted offers before the auction started.   I don't even see this offered in my market anymore.   

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