I used an auction to purchase a home eight years ago. The auction was in person and I experienced what I have now learned to be, shill bidding. The home I was bidding on was in fair condition and back then we were going through a recession so you could get a brand new foreclosed home for $99k. I went to the auction hoping to get a good deal, but once the bid went over $80k, I decided it was too much and let it go.
While leaving out, I was approached by an Auction.com rep and told if I wanted the house, I could have it for the $75k I bid. Without question, I purchased the home and within the first few months I found out so much was wrong with the home. I ended up putting over $40k into the home, renovating kitchen, three bathrooms, all new flooring, siding, and two brand new AC units because both went out within the first month. I walked away a few years later with nothing because I ran out of funding to fix everything in the home. The foundation needed repair, a new roof and so much more.
This was my first time using Auction.com so I learned to do my homework and FACTOR IN EVERYTHING that looks like a possible. This home was a foreclosure so my belief is the banks don’t care about the condition of the home, they only want the money the borrower owes them, and it’s Auction.com's job to do their best to get it to them. REMEMBER, Auction.com works for the seller, not in the interest of the buyer.
I’m sure they will deny shill bidding took place since it’s illegal, but why would the winning bidder suddenly disappear? I hadn’t even walked 5 feet from my seat when I was approached and told I could have the property.
Bottom Line: No, I would not recommend this to a friend
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