2.0
Editor's Rating1
User Rating (7 Reviews)Auction.com is an online real estate marketplace. They specialize in property auctions for foreclosed and bank-owned homes among other types of properties. As a real-estate auction platform, they have closed over 530K deals.
Pros
Cons
Auction.com is an auction platform for foreclosures, bank-owned, and short sale homes. Buyers love the deals: properties are often priced well below market. Sellers like the speed: listings go live fast on the platform without any upfront fee.
But these prices and speed come with strings. As a buyer, you may have to pay a minimum fee of $2,500 for a home with hidden issues. Whereas, as a seller, you may have to give up a huge chunk of your home’s value. Plus, there’s little to no help with pricing or marketing.
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✍️ Editor’s Take: We recommend you opt for cash buyer marketplaces. They connect sellers with nationwide investors, increasing your chances of getting multiple cash offers. Meanwhile, buyers can get the benefit of a smoother process and pricing transparency.
Key Takeaways
- Auction.com is a real estate company that helps with the buying and selling of bank-owned and foreclosure properties.
- Average Rating: 1.9 stars based on 563 total reviews
- Pros: Flexible sale terms, multiple buying options, responsive agents, and remote bidding options.
- Cons: Deceptive auction practices, high fees for buyers, complicated bidding process, and uncertainty of sale.
- Coverage: Nationwide coverage with services extending to all 50 states, including DC.
- Alternatives: Clever Offers, Houzeo, and Opendoor.
Is Auction.com Legit?
Yes, Auction.com is a legitimate and reputable company that provides unique real estate solutions. Jeffrey P. Frieden and Robert D. Friedman founded the company in 2007.
With nearly 2 decades of experience in the industry, the company’s website claims that they have closed nearly 530K+ deals, sold $67B worth of properties, and have 7.8M registered users. Additionally, they are an A+ accredited BBB company.
No, Auction.com is not a scam. They are a legitimate company with a large network of buyers and sellers. But “safe” doesn’t mean low-risk. Buyers frequently report aggressive counter-bidding, unclear listings, hidden issues, and complicated closings. On the other hand, sellers often struggle to secure the best possible deal through the platform.
Auction.com is headquartered in Irvine, California.
Auction.com Reviews
We compiled ratings and reviews about Auction.com across platforms such as Google, Smart Customer, Yelp, and Better Business Bureau. The company has a weighted average rating of 1.9 stars based on 563 total reviews.
On Google, Auction.com has a 3.4-star rating based on 29 reviews. On Smart Customer, they have 1.9 stars from 434 reviews. Whereas, they are rated 1.5 stars on Yelp based on 79 reviews. On BBB, they have a 1-star rating from 21 reviews.
| Website | Rating | Review Count |
|---|---|---|
| Yelp |  | 79 |
 | 29 | |
| BBB |  | 21 |
| Smart Customer |  | 434 |
| Weighted Average | | 563 |
After thorough research of these sites, we noticed that Auction.com has very few positive reviews compared to negative feedback. Most of the complaints were from buyers who faced issues such as:
These Auction.com buyer complaints outweigh the handful of positive reviews from sellers who find the platform simple and user-friendly.
Positive Reviews for Auction.com
✅ Hassle-free home buying experience
Brian O. purchased a home at a good deal and had a convenient buying process with Auction.com. They advised others to do proper research for a hassle-free experience. Additionally, the buyer had to pay a premium of $2,500, but they got it back within a day.
I recently purchased a vacant bank foreclosure on Auction.com and got a very good deal and had a quick, easy and enjoyable experience from bidding to closing. If you do your research and know what to expect it’s hassle free and actually is much easier than dealing with non responsive brokers or fussy sellers. Tips: Don’t place proxy bids, the site will just bid it up to the reserve, as is disclosed. Don’t fight the form contracts, yes they are silly one-sided but you are getting a good deal or otherwise move on. Supply all the required info immediately after you win. Yes you have to pay a 2500$ deposit to bid to keep the fakers out of the bidding. Got it back in a day. Do use a buyers broker as you are paying for the agents anyway and Most importantly do opt to use your own title.
Source: Smart Customer
✅ Professional and responsive agents
Wadah A. was very satisfied with the Auction.com representative who helped them out with the bid. The company’s representative answered their questions promptly and provided them with accurate information.
Mary answered my questions promptly, she gave the information I requested in a timely manner and gave accurate answers.
Source: Smart Customer
✅ Flexible closing timeline
Debbie W. had a smooth experience while using Auction.com’s nationwide services as a buyer. They received helpful customer service and even had the closing date extended when needed. As a result, the buyer went on to purchase another home through the company.
Despite all the negative reviews on here I decided to take a chance on auction.com. I figured $2500 wouldnt break me if something went wrong. I couldn’t be happier. Everything went fine. I called with questions when I had them and the title company working with auction.com even worked with me to extend the closing a week when my funds didn’t come through as planned. it’s a good story to tell my friends that I bought a house in Indiana through an online auction company in California and closed through a title company in Florida without a hitch. Thank you for a great transaction that provided a great home for a family in need! So then we bought a second house through auction.com. It went a little slower but again no problems.
Source: Yelp
Auction.com Complaints
❌ Alleged price manipulation
Willis G. complained that an Auction.com bot automatically places bids on behalf of sellers to push the price up to the reserve. They accused the company of hiding this fact in fine print and stated that buyers will not get a property at a good deal.
If you want to bid against a machine, then this website is for you. When you bid, there is bot that bids on the seller’s behalf to get more money. It’s buried in the fine print as it was pointed out to me, however you will not get a property at a good deal. The REMOVEDwill keep bidding against you until the property is full retail or until the reserve is met, is the term they use. There is no advantage to using this website. I drove out over an hour to look at a property, and I put a bid in with less than a minute to go and the bot almost immediately increased their bid. I called to complain because the bids were coming in as soon as I bid so I knew it wasn’t a human, they confirmed it was a bot and said it’s written in the fine print that they do that. Don’t waste your time. This website should be shut down.
Source: BBB
❌ Uncertainty about home purchase
Denise P. stated that Auction.com repeatedly changed the auction dates. They alleged that the company kept doing this until the desired price was reached. Additionally, they expressed concern for vacant homes listed on the site for a long period of time.
I have watched a couple of homes up for “auction” on Auction.com and I noticed the homes would keep having their dates changed, like a non stop auction! One home has been on their site around a year. It is true, they have the homes up for “auction” until they get the price they want. That’s not how an auction works, is it?! I feel bad for the homes on this site because they sit and deteriorate in the meantime! Please, do NOT fall for Auction.com’s scam. Very sad for the people and the homes. But I do wonder, is there a home auction that is legit? Shame on Auction.com.
Source: Yelp
❌ Last-minute auction cancellations
Sam Stallings had a frustrating experience with Auction.com. Despite being the highest bidder and submitting all the paperwork on time, they were still denied the purchase. Plus, the company did not refund their $5000 deposit after cancelling the sale.
I am a seasoned 30 year investor. This company is terrible to deal with. I was the successful high bidder on a property. Sent in all paperwork and made my wire deposit on time, within two hours as required by them. I receive a call hours later stating they are relisting it due to “Technical Difficulties”. The banks balance owed (reserve) had been met. There were other bidders and I was sent emails on what to do next as the successful high bidder. All conditions were met. $5000 Deposit was wired to title company. Then they tell me there was technical difficulty after they had my money and the auction was completed. No one is offering to refund my fees for the wire. All my time was wasted.
Source: Google
Pros and Cons
Auction.com is known for their flexible selling process, helpful agents, and remote bidding facility. However, complaints point towards the possible risk of deceptive practices and complex bidding process.
So, if you are considering selling or buying through Auction.com, it’s important to weigh both the benefits and drawbacks of the company.
✅ Pros
- Flexible Sale Terms: As a seller, you get the option to set the sale terms. This gives you more control over the selling process.
- Multiple Buying Options: Auction.com has a strong database of over 13,000 properties. So, buyers get a variety of options to choose from.
- Responsive Agents: Many positive reviews highlight that Auction.com customer service will offer their help and answer your doubts promptly. For instance, Lamika W., who had no idea about how to bid, learned a lot about the process through the agent’s help.
- Remote Bidding Option: Buyers can place a remote bid on their desired properties. This makes it possible to skip the hassle of a physical home purchase.
❌ Cons
- Deceptive Auction Practices: Many reviews alleged that Auction.com changes the auction date or relists properties until the reserve price is met. For instance, Mike Thaler noticed that a few bank owned propeties were listed on the site for nearly two years.
- $2,500+ Fees for Buyers: Buyers have to pay 5% of the winning bid or $2,500, whichever is higher. Although refunds are promised if the sale is cancelled, customers like Sam Stallings say the process can be a huge hassle.
- Complicated Bidding Process: Auction.com has a tedious bidding process. Buyers need to submit multiple documents and proof of funds to bid on any property.
- Uncertainty of Sale: Customer reviews point out that there’s no guarantee a deal will close. Both buyers and sellers can withdraw without penalty. Moreover, Auction.com lacks a system to prevent these last-minute cancellations.
How Does Auction.com Work?
To sell or buy a property through Auction.com, here are the steps you will have to follow:
Sellers
- Submit Property Details: On www.auction.com, enter basic information about the house, such as the number of bedrooms, kitchen type, balcony size, and other key features.
- Connect With an Agent: Auction.com will connect you with a local agent, who will help you with the sale. However, if you have prior real estate experience, then you can qualify to sell without an agent.
- List Your Property: Next, upload clear property photos and list your property. Following this, your home will be marketed to a network of buyers.
- Review and Accept Offers: Once your listing goes live, you can track all offers on your seller dashboard. Take your time to review each one, accept the best deal, and close the sale.
Like in most house auctions, if your property doesn’t sell on Auction.com, you can choose to relist it for another cycle, often with revised pricing or improved marketing. In some cases, interested buyers like the second-highest bidder may approach you directly after the auction to make an offer.
Buyers
- Create a Free Account: To buy through Auction.com, you have to first start by creating a free profile. This gives you access to property listings and bidding options.
- Register to Bid: You must register for each property you want to bid on. Users can register for up to three properties at a time.
- Submit a Registration Deposit: Some properties require a registration deposit (which varies from property to property) to place bids. This is typically refundable if you don’t win the auction.
- Research the Property Thoroughly: Take time to review the property details, documents, and any disclosures provided. Since many homes are distressed or sold as-is, due diligence is important.
- Read the Terms: Each listing has its own terms and requirements. This includes timelines, deposits, buyer premiums, and bidding rules. Go through them at this stage to avoid any surprises at the end.
- Prepare Your Finances: If you win, you’ll need to submit proof of funds and pay an earnest money deposit. You need to do all this quickly, often within a business day or even a few hours.
- Complete the Post-Auction Steps: Submit your contact information via an online form. Furthermore, sign the purchase agreement and wire the deposit to the closing company.
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🚨Important: The buying process differs for bank-owned properties, homes facing foreclosure, and private properties. We have provided generalised steps for the process. So, make sure to refer to the Auction.com website or contact through Auction.com phone number to get exact insight depending on the type of property you want to buy.
Auction.com Programs
Auction.com offers several programs designed for different types of buyers and sellers. To sellers, they offer SmartSale. While, buyers get the option of Remote Bid.
SmartSale Auction.com
SmartSale allows homeowners to sell their homes as-is in two ways. You can either choose to have an auction. Or, you can list your home on the platform and attract direct offers and negotiations.
Remote Bid Auction.com
Auction.com’s Remote Bid program lets buyers participate in select auctions without attending in person. You can place bids from a computer or mobile device and compete in real time.
However, their website mentions that not all buyers are qualified for Remote Bid. First, you will have to register and qualify for the program. Then, you will have to fund your account to place a bid from anywhere and at any time.
Auction.com Pricing
According to Auction.com’s website, their service is free for both sellers and buyers. However, if you place the winning bid on a property, you have to pay a buyer’s premium. This is usually 5% of the purchase price or $2,500, whichever is greater.
Buyers don’t owe anything to Auction.com beyond the buyer’s premium. However, they still need to cover standard closing costs like title fees and settlement charges to the involved third parties.
Yes, Auction.com has an app that you can use to buy or sell bank-owned properties.
Our Take on Auction.com’s Process
Auction.com’s buying process isn’t the easiest to navigate. The bidding system can be a bit confusing, especially if you’re new to foreclosure auctions.
Additionally, buyers aren’t allowed to tour the property beforehand, which feels a little unfair. Most people would prefer to see a place in person before making such a big decision.
For sellers, Auction.com provides minimal support, focusing on buyer access. Without any market analysis tools, many struggle to accurately price their properties. Consequently, they miss out on potential profits.
Auction.com Lawsuit
While researching Auction.com, we came across a past lawsuit that’s worth mentioning. In 2014, the company was accused of using “shill bidding,” where fake bids were allegedly placed to push up the final sale price.
Auction.com denied the allegations, and the case didn’t go too far, but it does make you think. If you’re bidding on a property, it’s good to be aware that not everything on the platform may be as straightforward as it seems.
Auction.com Competitors
We evaluated various real estate companies on metrics such as speed, convenience, and property condition. Our research led us to Clever Offers, Houzeo, and Opendoor as top options based on these features. Here’s how they compare to Auction.com.
1. Auction.com vs. Clever Offers
Auction.com can help you sell your property even if it is bank-owned or in need of repairs. However, complaints highlight that many homes listed on their site remain unsold for months, even years in some cases.
Clever Offers, on the other hand, promises a quick selling process. As per their website, you may be able to get cash offers and close the deals within as little as 7 to 45 days.
2. Auction.com vs. Houzeo
Auction.com’s home buying and selling process can be tedious for many first-time homeowners. You may lose track of the documents and transactions. Additionally, if you have never used any auction platform before, the process can be even more complicated for you.
Meanwhile, Houzeo equips you with advanced real estate tools to make the process easy and automatic. Whether selling or buying, the Houzeo mobile app guides you through a 100% online process with listing, documentation, closing, and more.
3. Auction.com vs. Opendoor
Auction.com mainly deals in distressed properties. You can also sell or buy bank-owned properties through their service. However, most homeowners do not list their homes on this platform if it is in good condition.
Opendoor, on the other hand, is an iBuyer with strict home eligibility criteria. Sellers need to ensure their home meets specific standards. So, you can use their service to either sell your perfect home or buy one.
Yes, there are other auction sites apart from Auction.com where you can find bank owned homes for sale. For example, Hubzu and Xome also specialize in home auctions for distressed and bank owned properties.
Auction.com Coverage
Auction.com provides services across the US.
Yes, there are Auction.com Texas and Auction.com Georgia offices. You can use their services to find bank-owned homes in both these states.
Is Auction.com LLC Worth It?
| Aspect | Strength | Weakness |
|---|---|---|
| Support | Sellers and buyers match with large pool of buyers in an instant. | There is no assistance with pricing and market analysis for sellers. On the other hand, buyers don't get to tour the property beforehand. |
| Process | Seller's listing process only has 4-5 steps. | Customer reviews highlight several instances of cancellations and offer withdrawals. |
| Cost | There is no fee for sellers. | Buyers have to pay a premium of $2500+ |
| Customer Reviews | 563 reviews present across three platforms. | Very few positive feedback. |
| Offers for Buyers | Chance to get properties below market value, especially with the right timing. | Risk of overpaying due to hidden issues or bidding wars. |
Yes, Auction.com is worth it if you are fine with your property remaining unsold for a long period of time. In case you are a buyer, you can also consider Auction.com homes if you are fine with the risk of overpaying for a distressed property due to proxy bidding wars.
For a better deal, consider listing your home through a cash buyer marketplace. It gives your property wider exposure and lets you compare multiple cash offers easily. Meanwhile, as a buyer, these marketplaces provide greater transparency, helping you assess a property’s true value.
We conducted thorough research on reviews of Auction.com to provide an unbiased and fact-based analysis. Our research compiled data on real customer experiences from credible sources. To maintain accuracy, the methodology included:
- Credible Reviews: We gathered reviews from sources such as Google, Yelp, Smart Customer, and BBB to ensure accuracy.
- Qualitative Analysis: We analyzed reviews to identify common themes and gauge overall customer sentiment.
- Objective Insights: To highlight both pros and cons, we summarized all the reviews and offered neutral insights.
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Reviews
(7 Reviews)
Darren
Verified Reviewer
Bob
Verified Reviewer
1st Jun 2025
Auction.com is a place a I use to work and it is the biggest scam out there, their estimated prices are 30% over inflated, most of the properties sold are occupied and auction does not like it when I’ve told folks to bid on the subject property as if it is gutted down to the studs an every appliance is missing. After all the property is occupied and i’ve seen too many folks buy into a property not expecting the home to be shredded inside and on top of that, plan on spending 5-10 grand to evict the squatters!
Michael THALER
Verified Reviewer
11th Mar 2025
They now handles a lot of California foreclosure sales. (California does foreclosures outside the Court system.) When they started they used the SHILL system, which meant they would announce a low opening bid prior to the sale. That attracted lots of us professional bidders only to find out they would have a couple of SHILLS (employees) run up the bidding to the real starting bid. 90% of the time that would be much more than we would pay. After wasting time for a while we contacted their bank clients to complain and make public in the legal publiication what the real opening bid would be. While they now do act properly at fcl. sales, they do use the SHILL system when auctioning listings they have for bank owned properties. They do annnounce in their listings that the “opening bid” is really meaningless and they will be entering bids starting for the bank until it reaches the real opening bid. Most sales listed never reach the “real” opening bid. Sales bidding is a 2 day online process. For fun – I have followed one run down property they keep relisting in a BAD part of Oakland the past 11 months. They have relisted it for dozens of the 2 day auctions during that period. The so called opening bid is $175K. Sometimes it seems like a real bid is entered for $225K (which seems high to me.) The Shill bid is then $275K. Over the past 5 decades I have bought/sold dozens of Oakland properties.
J T
Verified Reviewer
7th Mar 2025
Avoid this auction site. There is NO auction. They set a price & bid you up to that price themselves. Whats worse is even after the reserve is met, Auction.com autobid itself up well beyond the reserve price, and continues to auto-extend the bidding. After the sale finally ends, they just relist it and start all over again if they couldn’t sucker you into being the final bid. This seems like fraud to me, I’ll be done with Auction.com after this one & only experience.
G Hollis
Verified Reviewer
11th Feb 2025
Sure I was the only bidder. They continually countered my bid in $5K increments but never reached the reserve price. Auction.com still wanted me to fill out a purchase contract (essentially a written bid) deposit 5% then they would present the contract to the bank for approval. Talked to them on phone finally and that is the only way they will submit to bank. Since it had already stated on the website that if I did not submit the deposit within 6 hours the bid would be cancelled. Let it expire then they sent several emails trying to get me to send contract and deposit(they called earnest money) Am sure I would not have gotten my money back once bank refused contract.
Anonymous
Verified Reviewer
9th Feb 2024
I have been bidding on the same property since 11/1/23. I am the only bidder and no matter what I bid the reserve is never met and they start the auction again the following week. This is not an auction. It’s a home for sale…price unknown.
tim olwell
Verified Reviewer
15th Dec 2023
I bid on 5414 Wagon trail in Robstown TX area. The house had it’s flat roof torn off due to in-line high winds. The roofer installed a faulty roof and did not honor the warranty. A lien was placed on the house that clouded the title and meant the homeowner could not borrow against the equity. I spoke to the owner and was informed that the roof needs to be completely redone and Windstorm certificate acquired. The appliances in the kitchen do not work. The septic system needs work and there is over $100,000 of repairs needing to be done based on insurance estimates. I did the math and decided that I would have to invest over $170,000 to make this house sellable or livable. I decided to bid on the auction. I bid the minimum of $65,000. The required increment was $25,000. Auction.com bid $90,000 immediately for the seller. That meant my next bid had to be $$115,000. That amount was more than I would pay. OVER THE NEXT TWO DAYS, ONLY AUCTION.COM BID FOR THE SELLER. Over 12 seller bids in a row AND THE LAST BID WAS OVER $175,00! THE RESERVE WAS NOT MET. So beware, the website bid history makes it look like there is bidders’ interest when it is really seller bids against themselves. I think this is shady and dishonest.
13th Nov 2025
Prepar to bid againt the Aution.com robot… it never ends!!! This is called SHILL BIDDING and is outlawed on all reputable auction sites.