We have only tried to buy one home on auction.com, but I don't believe they are actually selling the homes they list. First, I've noticed that the same house will go up for auction 2, 3, or even 4 times, this should have been a warning.
We bid on a house that had previously been on MLS. We had tried to contact the realtor but she wouldn't return our calls. We had been by the house and knew that it was vacant and had even been winterized.
We won the bid. The seller came back and wanted a higher offer -- not a counter offer -- just said "offer more or we'll reject it." We increased our offer and the auction.com guy said it was above the reserve so they should take it.
We then got a call from the listing realtor ranting that we couldn't have bought the house because she had a buyer. Then she said she was going to "undo" our auction.com deal. THEN she offered us 5 thousand to flip the house to her if we DID get it!
Apparently she was able to "undo" our deal with the bank, because they rejected it again saying that the house had recently become vacant so they wanted more for it. Not true! The people were evicted and the writ served more than 2 weeks before the auction.
They have now put the house BACK on the website but we're through with trying to deal with them, except they won't return our earnest money. No reason -- just won't return our calls and won't contact the title company.
I think auction.com is fishing for buyers and that neither the reserve price or the winning bids mean anything. It sounds like they're not really authorized to sell the house at all -- they're just getting offers from the bidders and presenting them to the banks and hoping maybe they'll take the offer. Don't waste your time.
Bottom Line: No, I would not recommend this to a friend