About Auction.com

If you’re looking to purchase a new property, you may have heard about Auction.com, which claims to allow you to buy and sell residential and commercial property in an online auction format. In fact, Auction.com claims to have sold more than $25 billion of residential and commercial real estate since opening its doors in 2007.

But when it comes down to it, can Auction.com really help you find your next real estate purchase, or is it just a way to scam you out of your hard-earned money? We sifted through the facts, and here’s what we found out.

How Auction.com Works

At its most basic, Auction.com claims to be a real estate marketplace that uses “world-class marketing and cutting-edge technology” to help bring buyers and sellers together in an easy to use format. All Auction.com real estate auctions—including bank owned and redemption properties, foreclosures, short sales, bankruptcies, bulk sales, and residential and commercial notes—are date and time-specific, so you’ll always know exactly when they’ll begin and end. In fact, in some instances, Auction.com claims that some of their properties may be newly available and not listed anywhere else.

Auction.com claims to work over 3 steps:

  1. Search for properties that meet your criteria, including by state, county, city, zip code, address, or property ID, and then save them as your favorites. You can also sign up to receive email alerts any time a new property that matches your criteria is listed.
  2. Once you’re ready, you can then register for the property’s auction, place your deposit, and begin bidding. Bids are placed directly through the Auction.com website, and you can bid on more than one property at a time. However, you may be required to contact a bidder qualification representative, submit additional documents, and/or provide proof of funds prior to placing your bid. Auction.com also offers the ability to practice bidding before going through a live auction.
  3. If you end up being the high bidder, you’ll pay for the property and begin closing (we’ll talk more about this in the Bottom Line section).

During an Auction.com auction, the property’s home page will include important details such as type, address, square footage, number of bedrooms and bathrooms, estimated amount owed by the current owner, and pictures, as well as current bid, bid deposit, time remaining, if financing is available, and whether or not the reserve has been met. With this in mind, while most residential auctions occur directly through the Auction.com website, some foreclosure auctions will take place live at public venues (e.g. courthouses).

If you’re looking for properties on the go, Auction.com also offers an iPhone app.

Auction.com Pricing & Refund Policy

Signing up for Auction.com is free of charge, which gives you the ability to save searches, create custom alerts, and to receive auction announcements and advance notifications for new auctions that you may be interested in.

However, once you’ve decided to start bidding on a residential property auction, you’ll be required to put down a deposit of anywhere between $1,000 and $2,500, which must be placed on a credit card. On top of this if you’re the winning bidder, you may be required to pay a buyer’s premium in addition to the final purchase price, which is typically 5%. For example, if you purchase a home for $100,000, you may be required to pay an additional $5,000 directly to the seller on top of the sales price, which in most instances is a bank.

If you’re the winning bidder once the auction has concluded, your credit card deposit will be returned after earnest money has been received and purchase documentation has been signed. However, if you’re not the winning bidder, your deposit will be returned to your card within 2 business days.

It appears that there are no refunds associated with use of Auction.com, which seems to weigh heavily in the seller’s favor. We’ll talk more about this in the Bottom Line section.

Other Auction.com Reviews Around the Web?

Auction.com appears to have a relatively poor online customer reputation, with the most common complaints citing:

  • Numerous seller’s fees (often initiated by the banks) on top of the winning bid, many of which were not disclosed in the original auction.
  • Homes are already overpriced before auctioning even begins.
  • Accusations that these homes are not salable on the open market due to very poor condition (e.g. presence of mold/termites, serious structural problems, etc.). In fact, we read several reviews claiming that even when documentation for problems such as these were provided to Auction.com, they refused to list them in the property’s auction.
  • Poor customer (rude, unhelpful, attempt to rush you into signing an agreement that essentially waives all your rights as a seller).
  • Extensive shill bidding.

What’s the Bottom Line About Auction.com?

Similar to HomeSearch.com, Auction.com claims to be the “nation’s leading online real estate marketplace.” But does this mean that you should use them for your next residential or commercial real estate purchase? Like so many things in life, the answer is that it depends. Here’s why:

First and foremost, keep in mind that you’re solely responsible for performing all due diligence on any property you’re thinking about purchasing through Auction.com, including any existing liens and hazardous conditions. On top of this, most properties are not contingent upon financing and are sold “as is/where is” with no other contingencies available (such as an inspection). In other words, it’s up to you to find out as much as you can about a property before bidding, and if something comes up after you’ve agreed to purchase it, you have no recourse against the seller.

Second, it’s important to note that just because you win an auction doesn’t mean that you’ve purchased the property. Instead, Auction.com essentially acts as a buyer’s representative and submits your highest bid to the bank, who can then accept or reject your offer. As such, in addition to the complaints noted in the previous section, numerous customers stated that banks would take a very long time to respond to these offers, and even when they did, they would often change the terms (e.g. sales price, down payment/deposit amounts, seller’s/legal fees, etc.). And if you decide to back out of the deal once this occurs, Auction.com will then keep your deposit for “failing to close.”

Finally, although Auction.com holds an A+ rating with the Better Business Bureau with just 12 closed complaints over the past three years, their online reputation is much less rosy. In addition to the complaints noted in the previous section, the company has a reputation for rushing buyers to sign contracts that essentially strip you of any rights you may have.

Bottom line: If you decide to purchase a residential or commercial property through Auction.com, it appears it’s pretty much a coin toss as to whether or not your high bid will be accepted by the bank. And if it is, remember that you’ll essentially be subject to whatever last-minute changes the bank decides to make, while having almost no recourse throughout the process.

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31 Consumer Reviews for Auction.com

Average Consumer Rating: 1.6
Rating Snapshot:
5 star: 2 4 star: 1 3 star: 0 2 star: 8 1 star:  20
Bottom Line: 13% would recommend it to a friend
Showing 1-11 of 31
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  • 2 out 2 people found this review helpful

    Total scam!

    • White Bear Lake, MN,
    • Nov 29, 2018
    • Verified Reviewer

    I won a bid on a house back in August 2018 only to find out months later that they gave FALSE INFORMATION (it was advertised as REO, meaning real estate owned). How is selling a house that isn't even YOURS YET legal?! Because of this misrepresentation, it took 3 months for them to get their information together for closing only to find out that they were trying to sell the house for MUCH MORE than what was owed on the property in the first place! Information that would have been NICE TO KNOW THREE MONTHS AGO when we were originally supposed to close! Only an idiot is going to sign themselves up to potentially lose thousands of dollars if the house is redeemed during the 6-month redemption period, which can often times happen!

    BUT WAIT, it gets WORSE. After all of the misrepresentation and lies, they threaten to keep the earnest money deposit of over $8k. On top of that, I see the house listed on Auction.com right now to be sold again, HAHAHAHA. And would you believe they are still hoarding our $8k earnest money deposit?! SCAMMERS. BEWARE.

    Also, if you are reading this and the same thing is happening to you, don't go down without a fight. I am hoping to take them to court. Best of luck Auction.com!

    Bottom Line: No, I would not recommend this to a friend

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    • Nov 30, 2018

      Cynthia B., Content Marketing Manager

      Hi Lexi. Would you mind sending us an email to connect@auction.com with the property address and the buyer's email address so I can look into this for you?

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  • 5 out 5 people found this review helpful

    Auction.com is incompetent and unethical

    • Oakland, CA,
    • Nov 8, 2018
    • Verified Reviewer

    A copy of my complaint sent to Auction.com:

    This auctioned was scheduled for 9 am. I arrived at 845 and registered. There were several Auction.com employees present.

    I asked whether this auction was on or postponed, but they could not answer. In fact, I wasted several hours waiting for an answer. I did get an email at 1:12 stating the auction was postponed.

    Comments re this auction:

    1. The employee who read the usual legalese at 9 am mumbled and could barely read English. His discussion was barely understandable. Look into it and improve the presentation.

    2. I have been to many foreclosure sales not run by Auction.com. You show up at the sale time and you are told immediately whether the sale is on or postponed.

    Auction.com wastes the buyer's time. The excuse offered was "poor homeowner, give him a chance." The homeowner had almost 4 months to cure his default.

    3. I have purchased more than 5 properties through auction.com - several million dollars. In each sale, my treatment by Auction.com was a 3 on a scale of 1-10. Besides the typical incompetence of Auction.com, I absolutely object to your policy of allowing the seller in online auctions to bid up the price. It is unethical, and it is no longer an auction. In reviews of Auction.com, many others have objected to this policy. Because of this policy, I have not purchased any of your properties in the last few years.

    4. Your disregard for your clients, the buyers, have lost you my business. Without satisfied buyers, your sellers will go elsewhere, and your business is finished.

    Bottom Line: No, I would not recommend this to a friend

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  • 4 out 4 people found this review helpful

    Everything looked fine and the owner was very behind on payments.

    • Kansas City, KS,
    • Nov 3, 2018
    • Verified Reviewer

    This company is a JOKE. You can’t get ahold of anyone, LITERALLY, the auctioneers and reps know NOTHING. Buy from them or just light your money on fire, more satisfaction watching it burn than dealing with these people.

    Bottom Line: No, I would not recommend this to a friend

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  • 3 out 3 people found this review helpful

    Lack of communication

    I've been flipping houses for the past 30 years and this is the first time I'm attempting to purchase a property from Auction.com, and I assure you it will be the last.

    I won a bid on a property through Auction.com approximately 5 weeks ago. I was informed that closing was set for the 29th of October. By the 20th of October, I started making numerous calls and emails to Auction.com as well as their recommended title company, which by the way are extremely rude. I was told that the only thing they're waiting for to close is the township inspection for the final CO (smoke cert).

    By the 25th I took it upon myself to go to the township to see if the inspection was done. I was informed that the inspection was paid for but never ordered or scheduled.

    The township inspector was kind enough to call Rosie from Auction.com at 818-906-9738 to inform her that the buyer here and closing is set for the 29th, and at that point, she scheduled it for the 26th, the following day at 1 pm, and she would have one of the representatives there to let him in.

    I made a point to be present during the inspection and all went well and passed. The CO (smoke cert) was emailed to all parties involved to ensure that we could still close on the 29th.

    Immediately afterward, I called Auction.com, as well as the recommended title agency, informed them that we're all good and ready to go and we got the proper paperwork, and I took it upon myself to make sure it gets done and we can close on Monday the 29th.

    That evening, I got an email from PennyMac requesting for me to sign a 15-day extension. I immediately emailed her back to inform her of the update and her lack of communication and the extension will be denied since I took it upon myself to do their work and I have other prior arrangements and I will not be in town. That fell on deaf ears, and she emailed me two more times with the same request.

    It is now Sunday the 28th of October, and we're supposed to close tomorrow the 29th of October.

    Bottom Line: No, I would not recommend this to a friend

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    • Nov 6, 2018

      Cynthia B., Content Marketing Manager

      Dear Mr. Bekete,

      Auction.com is an online marketing and auction platform for assets in all stages of the foreclosure lifecycle. These assets are each unique and may be participating in government programs making them eligible to participate in the auction process. Due to the unique nature of these assets, there may be additional tasks and requirements to be fulfilled prior to closing than one may typically see in a standard traditional sale. We have checked our records, and it appears that Rosie is an employee for the third-party property management company and was responsible for coordinating the required smoke detector point of sale inspection. Additionally, we show that the agreed-upon terms in the Purchase and Sale Agreement put the agreed upon closing date as October 25, 2018. Due to the dates, an extension was requested to ensure all required documents would be on file prior to the file funding. We show that the transaction actually closed on October 31, 2018, and the seller is still in need of the executed extension document in order for the file to be complete. We would be happy to discuss this further and address any questions or concerns.

    • Nov 8, 2018

      Christopher B.

      Good morning Cynthia,

      Quite obvious, for my original post, the issue was not the smoke cert as I previously said, I took care of that on the 26th of October closing is set for the 29th of October.

      I called the title company of your recommendation (LINEAR) on the 29th of October to get the wire transfer information, and I was told by Nicole they can't close because they never contacted the homeowners association to get the figures and they need an extension till November 15th. Once in, I took it upon myself to give them the contact information as well as me contacting the homeowners association. You would think the problem is solved but not with that title company.

      Couple hours later I called the title company and was informed that the seller paid the quarterly taxes and was not posted on the township site yet. I suggested that hold the money in escrow and let's move forward with closing. Closing still did not happen on 29th. I got a call from Rosa on the 31st of October, that the title company can close today if I were to sign an extension for just one day, I COMPLIED.

      But if I'm not mistaken, they were saying an extension was never assigned and your file is not complete yet, how do you close on a property with avoiding the contract, that clearly states time of the essence do you research auction.com and stop sugar coating the issue learn from it and move forward.

      If you need proof of anything that I'm stating I will be happy to provide it for you. Do to your reputation, I recorded all the conversations I had with auction.com, the title company, which by the way I wouldn't trust in the future the manager hot dog stand. I will be happy to post it on YouTube and personally send it to you through my attorney. If you have any questions feel free to post it here just more evidence

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  • 6 out 7 people found this review helpful

    Not the best way to buy a house!

    • Oregon,
    • Oct 13, 2018
    • Verified Reviewer

    I have purchased a few houses from Auction.com.

    I have been a successful "house flipper" for many years now.

    When I first dealt with Auction.com years ago, they were pretty decent. I felt they were on the up and up, but times have changed now...everyone and their brother are out trying to flip a house like they saw on TV. Well, Auction.com is not going to help you get rich...

    It doesn't matter what the starting bid price is because it's not selling for that.

    First check online or with a Realtor to see what the listed price is. I have found the reserve with Auction.com is usually around 5-8% less than that amount, but by the time you pay your auction fees and stuff, it works out to be pretty close to the same.

    You NEED TO KNOW this amount because that is the price where you actually have a chance to purchase the home. Auction.com will AUTO BID the price up repeatedly to get the house up to the reserve amount, so they have a chance to close the deal!

    If you don't believe me, then just try it on your own...

    I constantly bid on a house and was outbid every time within 20 minutes. I waited for the same house to come back on "auction" since it didn't sell or meet the reserve numerous times, and I learned it would be back on in one week, pretty much every Sunday and would end on Wednesday. I seriously watched the same property 10 times, and as I write this, I am waiting for the next round, hoping the reserve will be just a fuzz lower because I really want it! But what I did was wait once, I waited for 2 days, and there were NO BIDS, so I bid at 1 am and yup, I was outbid by 1:30 am. This just confirmed to me that I was bidding against a computer.

    Don't get me wrong, Auction.com will sell you a house, but you just won't get that smoking deal that you think you're going to. Be smart, and educate yourself on the property and what it's worth, and know your limits, AND STICK TO THEM! That's the hardest part. Especially with their auto bidding computer. They will make you think, "hmmm...it's only $1k more...I can do that." HA! Later you win and go over your budget by $10k.

    Like I said in the beginning, I HAVE PURCHASED a couple of houses from Auction.com and actually closed the deals. I have also lost hundreds of auctions as well, and I am perfectly fine with that!

    Good luck!

    Bottom Line: Yes, I would recommend this to a friend

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    • Oct 16, 2018

      Cynthia B., Content Marketing Manager

      Hi James. Thank you for your review. We would like to hear more about the property you are tracking. Would you mind taking this conversation to email? You can reach us directly at connect@auction.com.

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  • 19 out 21 people found this review helpful

    Rigged auction

    • Union, NY,
    • Jul 30, 2018
    • Verified Reviewer

    It's not really an auction as you are bidding against their own site's computer. It automatically bids up and adds time at the end of the auction even if you are the only one bidding so as to get their reserve price. Why don't they just tell the minimum price needed than having the "auction" over and over until their price is met?

    Bottom Line: No, I would not recommend this to a friend

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    • Aug 17, 2018

      Cynthia B., Content Marketing Manager

      Thank you for your comment, but please allow us to clarify your comments as they are not entirely accurate. As disclosed in the Auction.com participation terms and property details page, Auction.com is permitted to bid on behalf of the seller up to, but shall not exceed the reserve price. Counter bidding on behalf of the seller extends the auction for assets that have not reached the reserve price and would otherwise end unsuccessfully. By extending the auction, it increases the likelihood that the auction may end successfully. This practice benefits the bidder by increasing the likelihood that the auction will produce an offer that the lender is willing to accept. Please let us know if you have questions.

    • Sep 1, 2018

      Frank K.

      It is a scam. Do not fall for their false claim solicitation via email that the highest bidder will win the property end of the auction period. I have been declared to be the winner and won a real estate in question surpass the set reserve price. I had asked to sign electronically their "Purchase and Sale Agreement With Joint Closing Instruction" documents after Auction.com instructed me to wire transfer the earnest money to a bank account. Despite the written documentation, which states that the signing of the purchase agreement is simultaneous. I was told it takes 7-12 days before Auction.com can provide me with a legal document copy bearing the seller's signature marked the proper boxes so that the closing and an escrow account could establish before the 30 days (transaction being financed 45 calendar days) closing date set. I had never received the signed and the corrected documents but I received an email notification that they have received my cancellation request of the pending purchase. As of 60 days later, I am out of $10,825.00 earnest money paid. No explanation. Be aware of doing any business or participate the fake process bidding with Auction.com or its parent Ten-X LLC companies ever.

    • Sep 4, 2018

      Cynthia B., Content Marketing Manager

      Hi Frank. Thank you for your comment. Would you mind sharing the property address so we can look into this?

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  • 13 out 13 people found this review helpful

    Terrible customer service

    • Alabama,
    • Jul 17, 2018
    • Verified Reviewer

    This was my first purchase, so I really didn't know what I was getting into. This was a house in my hometown so I knew something about it but knew nothing about the process. The customer service was awful at Auction.com. I made several calls to get information after the bidding, and I was talked to like I was an idiot, spoken to in terms that I had no idea what they meant and when I asked for explanations I got nowhere. I felt like this was intentional on their part. They rushed me to send the deposit money, but once that was done, I was in the dark until they got ready to talk to me. Thankfully, in the end, it turned out ok, but I don't think I will use them again simply because of the poor customer service, which is important to me.

    Bottom Line: No, I would not recommend this to a friend

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    • Aug 17, 2018

      Cynthia B., Content Marketing Manager

      Thank you for your review. We would like to extend to your our most sincere apologies regarding your experience with Auction.com. Your feedback will help us to improve our customer experience and we hope to see you back on Auction.com in the future.

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  • 14 out 14 people found this review helpful

    They sold me wrong house pictured on website

    • Georgia,
    • Jul 10, 2018
    • Verified Reviewer

    I saw a house on Auction.com. I went to see it and liked it and won the house. The house advertised was the wrong house picture and legal address. The not so nice of a house down the road was the right house with not the right address advertised. I went to inform the people I'm the new owner of the wrong house I thought I won. She said I called Auction.com and told them they have the wrong house on the website but they left it on. I called Auction.com and they said read the contract, we are not responsible if we sell you the wrong house with the wrong address and picture as long as the legal description is right. When you look even today and it says you won this house, but I did not. Do I have a case I don't know, but maybe just a learning experience. If they were not greedy, they would do what's right.

    Bottom Line: No, I would not recommend this to a friend

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  • 12 out 12 people found this review helpful

    A nightmare

    • California,
    • Jun 29, 2018
    • Verified Reviewer

    I bought a house from Bank of America through Auction.com. I found that my house is half on someone else's property. ServiceLink, their associate, had full knowledge. Stay away!

    A nightmare. Keep getting danced around. I am going to escalate everyone keeps telling me.

    Bottom Line: No, I would not recommend this to a friend

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  • 28 out 29 people found this review helpful

    Bogus live auctions

    I wasted at least four days researching a property that was coming up for a live sale. I did a title search, drove by the property, and went ahead and got a cashiers check for 20 grand made out to Intercounty Judicial Sales Corp. I was ready to go and bid on a property live.

    Anyway, I called Auction.com to make sure the check was made out to the proper company and to verify the location of the auction. Well, to my surprise the address listed on their site hasn’t had an auction their for over a year. I called Auction.com to report the bad information, and they were extremely rude. On top of that, they lied to my face and told me the auction was being held at the public safety building at 400 W State Street. Again no auction being held. I then asked them for the company's phone number, which they declined to give me.

    Do yourself a favor and don’t waste your time with this deceitful company, they are definitely no good. Consumer beware. Because of this company’s shady tactics, I would never ever bid on one of their properties online. They are worse than any politician or sleazy used car salesman. Do not believe anything they tell you.

    Bottom Line: No, I would not recommend this to a friend

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    • May 2, 2018

      Cynthia B., Content Marketing Manager

      Thank you for your review. We are very sorry to hear about your experience with Auction.com. Auctions in your area are conducted by a third party and can be held wherever the trustee chooses, and information can change at any time, as noted by the Notice of Sale. As Auction.com does not conduct the sale, we are solely marketing this information on behalf of the trustee. Our website may not always accurately reflect the appropriate auction location. We recommend calling the additional contact(s) included at the bottom of the property details page before heading to auction.

    • May 16, 2018

      Ross Siren

      I too went to the auction site, waited, and nothing. The auction did not take place, even though every time I looked up on Auction.com on the internet, the auction still showed up as being set. This just wasted my time!

    • May 16, 2018

      Cynthia B., Content Marketing Manager

      Hi Ross. Would you mind sharing some information? Were any of the auctions held or was the property you were interested in bidding on canceled? Also, would you mind sharing the location? Thank you.

    • Jun 25, 2018

      Rebecca B.

      I'm still waiting for my email address to be approved before I can even make a bid on properties! (Whatever the heck that means!) If we miss our opportunity to make a bid, it's due to your incompetence. I smell a shoddy operation here.

    • Jul 6, 2018

      Cynthia B., Content Marketing Manager

      Hi Rebecca, we are sorry to hear you had difficulty accessing our website. Were you able to log in?

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  • 23 out 23 people found this review helpful

    Scam artists

    I won the bid and started going back and forth with them regarding the contract. They were taking their sweet time and not only that, but when we got their "purchase agreement" we saw that they could not even get the buyer properly listed on it. They are a group of completely incompetent individuals that care about nothing else other than enriching themselves, while hiding behind a long list of unscrupulous lawyers. When we finally got a corrected agreement, they insisted we get it fully signed and back to them in a couple of hours, otherwise the transaction will be canceled. But they took over a week to get us a corrected agreement.

    Also be careful with the settlement and title companies they use. The majority are their subsidiaries, their fees are exorbitant, compared with the rest of the industry, and their quality of work severely inferior.

    Bottom Line: No, I would not recommend this to a friend

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