Auction.com is a California-based online auction marketplace. They specialize in conducting online auctions for bank-owned, short sale, and foreclosure homes. Furthermore, they allow remote bidding to streamline real estate transactions.
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Pros
- Connect with qualified buyers/sellers
- Your property can get good exposure
- 13,000+ properties to choose from
- Nationwide coverage
Cons
- No guarantee of sales
- Not too many positive reviews on credible websites
Auction.com is an online auction marketplace. They host over 15,000 auctions per year for residential bank-owned, short-sale, and foreclosure homes. Moreover, they use data science to give investors precise property information.
Auction.com organizes both in-person and online auctions. In-person auctions happen at a specific place and time. For online auctions, buyers can submit a remote bid on bank-owned properties. While participation is free, successful buyers need to pay a premium upon winning the auction.
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✍️ Editors Take: Auction.com does not provide guarantee of sales as they are an auction marketplace. Furthermore, you do not know when your property will sell in an auction. This might increase your selling timeframe.
Is Auction.com Legit?
Yes, Auction.com is a legitimate company founded in 2007. They are headquartered in Irvine, California. Their website mentions $62B in sales and 6.9M registered buyers.
Furthermore, Auction.com has a community service team, Auction.com Cares. Through this service, they offer housing solutions, contribute to neighborhood development, and help veterans as well.
We also found that customers have some concerns with Auction.com. These are related to legalities, transactional transparency, and reserve fees on certain bank-owned residential properties.
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⚠️ Note: When buying through auction.com you have to compete with potential buyers and Auction.com themselves. They will sometimes bid on the property to meet the seller’s reserve price. This information is mentioned on their website.
How Do They Work?
Auction.com has a property details page. The page highlights square footage, number of rooms, lot size, and year built. We recommend you check these before choosing a property.
Auction.com organizes in-person auctions for foreclosure properties. On the other hand, bank-owned properties are also sold online. However, we could not find the bidding process for short-sale properties on their website.
Bidding Process
Foreclosure Properties: In-Person Auction
You need to follow these steps to participate in a foreclosure auction:
- Create an account: Create a free account with Auction.com and browse through their foreclosure properties.
- Select your desired property: Go through their property details page. You can save the homes you like.
- Attend the auction: Ensure that your property is eligible for sale. Reach the venue on time with provisions to make a cash payment.
- Record the grant deed: If you win a property, contact the local county to record the deed.
- Gain possession: Once you obtain the grant deed, move into the property.
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⏰ Check Event Calendar! Auction.com has an event calendar highlighting the date, time, number of properties, and venue of the auction. Make sure to check the calendar on their website.
Bank-Owned Properties: Online Auction
Follow these steps to bid on a bank-owned property:
- Create an account: Create a free account with Auction.com to view various bank-owned properties.
- Select your desired property: Choose the property that you like and register for the auction.
- Attend online auction: Participate in the online auction and also keep a check on the highest bidder.
- Make the payment: If you win, sign the purchase agreement and wire your earnest money deposit and proof of funds.
- Gain possession: Work with the closing and title company to secure legal occupation of the property.
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⚠️ Note: It is free to bid on Auction.com. However, you must pay a premium of $2,500 or 5% of the winning bid on some properties.
Auction.com for Sellers
We could not find a way for sellers to list their property on Auction.com. However, they do have a sales disposition program. This program helps sellers auction their properties with maximum reach.
Sellers can also set a reserve price for bank-owned properties. This is the lowest price they’ll accept. But, there is no obligation to sell even if the bid meets the reserve price.
Coverage
Auction.com provides services all across the US. So, you can buy from anywhere you want
| Regions | States |
| Northeast | Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont |
| Midwest | Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Ohio, South Dakota, Wisconsin, Nebraska, North Dakota |
| South | Alabama, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia, Arkansas, District of Columbia |
| West | Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Alaska, Hawaii, Wyoming |
Auction.com Reviews
Auction.com has reviews on credible platforms. We calculated a weighted average rating. This provides a comprehensive overview of customer sentiments.
| Website | Number of Reviews | Review Count |
|---|---|---|
| 3.7 | 23 | |
| BBB | 1 | 14 |
| Sitejabber | 2.4 | 433 |
| Weighted Average | 2.36 | 470 (Total review count) |
Positive Auction.com Reviews
✅ Frankie L. is a frequent buyer on Auction.com. They feel Auction.com is easy to use and better than their competitors.
I have purchased 80 properties online on behalf of the company I work for and over 50 of those have been through Auction.com. Auction.com is the easiest to use. Their people (especially Nicole Mizerek) have been excellent to work with. They are not perfect – but compared to the competition – they are rock stars!
Source: Sitejabber
✅ Brian O bought a bank foreclosure home on Auction.com. He feels he got a great deal. Overall, his experience with Auction.com was hassle-free.
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.
Source: Sitejabber
Negative Auction.com Reviews
❌ Richard Marshall is a real estate broker. He thinks Auction.com has a tedious buying process. According to him, buyers have to submit many documents and proofs before bidding on any property.
I’m a broker and have sold a few deals for clients on the site, but not at my recommendation because I believe a ‘standard’ marketing campaign is more beneficial to the highest price and finding the best buyer. It’s not that it isn’t a good platform for selling, but there are so many little things that I feel hinder the buyer pool. Each buyer must register, provide proof of funds, and place a deposit in order to bid on the property.
Source: biggerpockets
❌ Won T did not have a good experience with Auction.com. He feels the company doesn’t care about buyers and is quite unprofessional.
I have very bad experience with this company they don’t care about their customers specially if you are a buyer they treat you very unprofessional and rude team no respect at all any one out there trying to do business with companies I suggest to stay away you from this business will end up sorry what a bad experience I have with them if I have a power I shut down this scammer over night for sure!
Source: sitejabber
Pros and Cons
Here are the pros and cons of Auction.com:
👍Pros
- Escape Lowball Offers: The time-sensitive nature of an auction can increase the sale price of a home. Moreover, auction.com counter bids on your property to meet the reserve price.
- Nationwide Coverage: Auction.com’s marketplace features properties from all 50 states. So, you can buy from anywhere in the US.
- Remote Bidding: Buyers can place a remote bid on their desired bank-owned property.
👎Cons
- Not Many Positive Reviews: They lack positive reviews on credible websites such as Google and BBB.
- All Cash Transactions: A majority of the transactions on Auction.com happen in cash. Buyers can’t opt for a mortgage to buy their desired property.
- Complicated Bidding Process: Auction.com has a tedious process. Buyers need to submit multiple documents and proof of funds to bid on any property.
Competitors
We have chosen these competitors based on ease of use and types of assets.
» Jump to: Auction.com vs. Xome | Auction.com vs. CWM Marketing
1. Auction.com vs. Xome Auctions
Xome is an online auction marketplace launched in 2015. They deal in all types of homes. Furthermore, they have an easy-to-follow process for buyers and sellers.
Auction.com, on the other hand, deals only in distressed homes. After analyzing customer reviews, we felt that the buying process of Auction.com is slightly more complicated.
2. Auction.com vs. CWS Auctions
CWS Auctions is also known as CWS Marketing. They have been providing auction management solutions since 1990. They also work with government agencies. Apart from real estate, CWS conducts in-person auctions for various types of capital assets. For example, aircrafts, boats, vessels, etc.
Auction.com is a standard online auction marketplace. They deal in distressed properties. Furthermore, they also don’t have a track record of working with government agencies.
Is Auction.com Worth Trying?
The answer to this question is ‘it depends’. If you want to sell your as-is, Auction.com might be a good option as they deal in distressed properties. However, we feel that their buying process is a bit tedious as is common to Auctions.
Furthermore, it takes time to sell homes via an auction. As a result, selling on Auction.com might be a significant time investment. So, if time is of the essence, they might not be a wise choice.
We recommend selling your home with smarter options like an FSBO company. An FSBO company lets you manage your sales with ease. Houzeo stands as a top choice in this category.
» Houzeo Reviews: Check out why 7,800+ home sellers have rated Houzeo 4.9 stars out of 5 on Google and Trustpilot.
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FAQs: Auction.com
Is Auction.com legit?
Yes, Auction.com is a legitimate online auction marketplace based in California. They help sellers auction distressed properties. Moreover, they host over 15000 auctions per year in the US.
Can I set a reserve price on Auction.com?
Yes, you can set a on Auction.com. If you don't wish to accept bids on the reserve price, you may choose to decline or wait for highest bids.
What are some Auction.com competitors?
Auction.com has some competitors. We have chosen these based on three metrics - sales certainty, home eligibility criteria, and customer reviews. Learn more how Auction.com compares with others here!
(1 Reviews)
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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.
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