Auction.com bills itself as being the nations number one real estate auction site. These types of
auction sites have literally bloomed all over the web. As the real estate market here in the US starts
an unsure future websites like auction.com have really flourished.
You have two types of buyers at auction.com, you have
individuals that believe they will find the home of their dreams at a dirt cheap price, because they will be able
to scoop up a foreclosure and you have brokers that are there to flip properties. Brokers buy properties and resell
them at a profit. For anyone who doesn't know what an auction is, according to Wikipedia, an auction is a process
of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the
highest bidder. Probably the most popular auction listing service on the web is Auctionresource.org so you may want to check them out also.
The Costs for Auction.com
One of the first things I check for when I hit up a site such as this one is the cost. A lot of people
have the vision, they are able to see how the cost of the site can be justified once they are able to
secure a property for thousands or even hundreds of thousands of dollars.
Ultimately I searched around a bit to see what the
deal was and I can honestly say that I liked what I saw. To bid you have make a deposit which ranges from
$1500-$15000 depending on the bid limit you set for yourself at the auction.
They offer an instant chat feature which I took
advantage of to find out the low down about the site and the costs. First let me say the chat feature worked
well. There is no monthly fee or subscription price and no membership costs which I like.
The agent was friendly and knowledgeable and suffered
through all of my questions with grace! There are fees associated with winning. A buyers premium of 5% is
tacked on to the winning bid either the 5% or $2500 is added to the winning bid whichever is greater. I guess if
you are one of those visionary types you will be able to see how paying that additional 5% is worthwhile, this is
evidence to me that you make sure you are doing your homework about the property value in the area where the
property you are about to bid on is located.
The site is easy to navigate and most of the answers
that you need are easy to find. I liked the site and think that this may be a great way to save some money on
property. It is well laid out and user friendly.
This site is a good choice if you are in the market
to invest or even maybe find a home!
Subscription Price: $0 Number of Items: Varies Geographical Location: Nationwide
Overall, the Auction.com review shows that this is a
legit site and is not a scam, however a more popular choice for finding deals online is to use a service like
Customer Responses, Reviews, or Complaints About
Review #2 for
Auction.com Reviews – Is Auction.com a
The Auction.com reviews show that this site bills
itself as the “nations leading online real estate market”. I am not sure how this claim has come about but I
did find out a few facts about the site. The company was started in 1990 which is impressive in the ever changing
virtual world of the internet because they are still around.
I also discovered that you can NOT cancel a bid once
you lay down your bid it is set in stone. Once you win a property than you are bound by contract to buy that
property. If you do not you are faced with heavy fines.
To participate in the auction you have to place a
deposit. The deposit amount varies depending on the perceived value of the item up for bid. Earnest money is also
due on the day of the auction for winning bidders.
You have to have all your ducks in a row before you
participate in the auction, make sure you have your earnest money on hand and make sure that you have your deposit
money on hand. If you dont than don't bid.
I found this site to be confusing. I am assuming if
you are seriously considering participating in a property auction than you will do the research necessary to do
that. Prepare yourself, information on this site is hard to track and to decipher.
The site is “busy” there is a lot of information
floating around but it is not all centrally located so you do have to search to find it. I would like to see some
straight forward information. Yes, I understand it is a big process to bid on property and yes I understand that
the site has to be business like, but no I do not think that business like means confusion.
The Inventory at
There is a lot of property and other goods offered on
this site but it is difficult to really determine if the auctions are held online or if you have to go to a
specific site to participate in the auctions. I tried to use the chat feature but no one was home when I
This site was a lot of work to check out so I
decided to do a simple web search to see if there were any consumers that were raving about the site either one way
or the other.
One consumer was so annoyed that they posted on
ripoffreport.com and were trying to rally other users up to go to the CA Attorney General to
“Have bid for properties on this site several
times and have begun to notice a pattern of questionable results. Just bid on a property just before the close and
was the only bid for two days and should have been the high bidder at the close. When I called to ask for the
confirm they said someone else was the high bidder and bought the property! This could only have happened if they
allow front running by insiders. This is not the first time this has happened on this site.”
There were a few other complaints as
The Bottom Line
Buyer beware. Make sure you understand what you are
getting into before you start bidding. Don't jump right in. Read the terms agreement. Move forward with some extra
Auction.com is a real estate marketplace that hosts auctions for
different properties. The site handles many online property auctions but just as many auctions are held in real
time off site. There are special considerations that you should follow when you are bidding on something as
expensive as real estate.
In most cases you are not able to view the property other than from
the outside or from pictures that the seller is posting. A real estate transaction is a bit different from say
winning a TV at auction.
There are very specific steps that are outlined in the Terms and
Policies on the website that you will absolutely have to read and understand before you get started. You should
also read all the other policies and terms that are posted on the site to insure that you are completely aware of
your rights and responsibilities.
Things You Need To Register
The Auction.com reviews show that registration is free but to bid you
will need a valid credit card. The credit card is used to place a good faith deposit. The card is not actually
charged but there is a hold placed on the card for usually about $2500.
If you are not the winning bid the hold will be released from your
credit card the first business day after the auction. If you are the winning bid the hold will remain until you
produce the earnest money and sign the purchase agreement.
BEFORE you get ready to bid be sure that you have your financing
lined up. The auctions are not contingent on your ability to get financing. At the time of winning you will need to
produce either a financing commitment or proof of the cash to close. Escrow will not be delayed nor will closings
because the winning bidder does not have financing in place.
You also should be aware that your bid is a binding contract and
backing out of the contract will cost you plenty. Also understand that the properties are being sold “as is where
is” without any warranty of condition.
Can You Get a Good Deal?
The answer is YES! You can score property for pennies on the dollar
if you are a savvy consumer. One of the key ways to make sure you do come out on the winning end is to completely
understand the terms and conditions and all the other legalities involved in the auction
Educate yourself and take some time to watch how the bidding works
and develop a strategy!
This can be a good opportunity for anyone that is interested in real
estate investment. It may not be the best way to find your primary residence. Just make sure your eyes are wide
open and you do the necessary research before you start bidding.