ANYONE EVER USE ...... AUCTION.COM (checkout this deal plz)

13 Replies

If you have ever used auction.com please post up your horror / success story here ! 

And I would appreciate ANY feedback you guys can give me on this property I am looking to purchase.  Comps are all around 50-60 
*It is currently up for sale on auction.com 


1726 Tumbleweed Drive

Holiday FL

AE Flood Zone

Bidding starts at $15K - Runs 3/9 – 3/12 on auction.com

Debtor is currently occupying the property

First question is if they are already really auctioning it off, who owns it and why is the debtor still occupying if they are already auctioning it off?

Sure seems like some of their properties keep getting recycledl I mean how can they be auctioning the same foreclosure off for years and years?

Perhaps thats how they have become so rich, by holding lots and lots of DEPOSITS with bids.

Do they even have agency with the owner of what they are auctioning (ie the bank that has just foreclosed on the property or whatever)?

i was hoping to hear from someone with first hand experience with the site.

thank you 

I've purchased several houses from them. Never had any luck with the online auctions only the lives ones. One thing to be aware of is that in the online auction they will put a bid in at the last second to make you think other people are bidding all the way up to the credit bid. Thus don't think that your bidding against a person at all times it could be auction.com your bidding against. They kinda of do it at the live auctions because if no one bids they will place a bid equal to banks credit bid. It's just not as sneaky that way.

Just some quick items:

  • Remember the purchase price is your bid + 5%
  • Opening doesn't mean anything. There is usually a reserve price. Just figure out your max offer. 
  • If you win the auction you will have to sign the most unilateral contract you have ever seen. Make sure you actually want the property

I just closed on an auction.com property last week. Pretty straight forward and easy as it was a cash sale. Auction said it was occupied and I peaked inside and found out that wasn't true. Then I was the highest bidder but didn't meet the reserve. They had me fill out a purchase agreement anyways (standard procedure for highest bidder regardless of meeting reserve). A week later I was informed it was accepted. This was the first go around for this house as I have seen the same house auctioned off several times before bank accepts offer. Also I represented myself as my agent and received the commission as well. They told me Freddie Mac is the only one who will allow a agent to represent himself. All in all it was better than my previous experience and I will continue to buy from the website.

I bid on many things on this site when I was first getting started in buying distressed assets.  The two biggest problems I have had are, first, that many people bid crazy values in auctions, and second, as to this particular site, I think they don't disclose everything very clearly. One of the commentators above is right that their contract is the most unilateral you have ever seen, and in fact after one auction, we were above the reserve and I won.  They had me send additional deposit (above the bidding one) and sign their unilateral contract, which says they can back out for any reason.  Sure enough, a few days later, they contacted me and said they would cancel the contract unless I agreed to raise the price by something like $10,000.  I felt this move violated the spirit of the auction, but when I read the documents I found they did have the right to do this.

Originally posted by @Jake Thomas :

What were the auction.com fees on top of your purchase price ?

Did you have to pay ALL closing costs ? 

I have a hard time accepting all of the nonsense associated with Auction.com auctions.  Bids from the operator of the auction?  Offering assets that they do not control or possess agency for?  Renegotiating find price after meeting the reserve price?  Sounds like a very one-sided proposition to me...

@Nicholas Moffett  

They charge 5% or $2,500 whichever is greater. My property costs $15k so I was charged $2,500 on top and that is also the required escrow amount ($2,500). 

Originally posted by @Jeff Pelletier :

I have a hard time accepting all of the nonsense associated with Auction.com auctions.  Bids from the operator of the auction?  Offering assets that they do not control or possess agency for?  Renegotiating find price after meeting the reserve price?  Sounds like a very one-sided proposition to me...

 I agree 100%.... especially with them trying to re negotiate after you hit a reserve price. 

Originally posted by @Jake Thomas :

@Nicholas Moffett 

They charge 5% or $2,500 whichever is greater. My property costs $15k so I was charged $2,500 on top and that is also the required escrow amount ($2,500). 

 Before you started bidding, what did you do for due diligence ? did you hire a title company and get title insurance ? 

@Nicholas Moffett  

Sometimes they have a preliminary title report as a document attached to the listing. For the one I bought it had some back taxes and an old waterbill but the seller took care of that and I was given a warranty deed when I closed. 

Originally posted by @Jake Thomas :

@Nicholas Moffett  

They charge 5% or $2,500 whichever is greater. My property costs $15k so I was charged $2,500 on top and that is also the required escrow amount ($2,500). 

This is correct.  I have placed the highest bid (won the auction) before but of course it says subject to bank approval.  They called and asked for my highest and best which I told them I was sticking with my bid.  After a week and a half they called and informed me the bid was rejected.  The property has been back through the process about 6 times.  I gave what I felt like was a fair offer based on condition.  I went to one of their live auctions in Chattanooga and they started the bids out low but bid against you until the price was to their reserve...which was too high 95% of the time.  I believe there was one property sold of the 15 available on the particular day I went.   

Join the Largest Real Estate Investing Community

Basic membership is free, forever.