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