Auction.com ratings | Reviews | Service quality | Cost | Alternatives | Next steps | Methodology
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Auction.com is an auction marketplace for distressed real estate properties across all 50 states and D.C. It hosts online auctions for residential, bank-owned homes and in-person auctions for foreclosed homes.
Auction.com targets real estate investors who want to improve abandoned or unkept properties for a profit. The platform features 13,000+ investment homes that aren’t available on the local MLS.
It’s free to create a buyer’s account for Auction.com, but if you win an auction, you’ll pay a buyer’s premium. Agent commissions vary for bank-owned sales, while foreclosure properties have zero commission.
The system is designed to benefit the seller first, but if you’re an experienced investor, this platform could work for you.
But we don’t recommend Auction.com for most real estate investors, due to its lack of transparency, according to reviews. Alternatives like Xome and Foreclosure.com are likely to give better service. Or, if you’re looking to buy a new home, use Clever to get cash back.
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Auction.com at a glance
| Our rating | 2.9/5 |
|---|---|
| Auction.com reviews | 2.4 |
| Service quality | 3.2 |
| Cost | 3 |
| Ratings based on 1–5 scale, with 5 being the best. Learn more about our methodology. | |
Auction.com reviews
| Company | Average rating |
|---|---|
| Google (23 reviews) | 3.7 |
| Better Business Bureau (10 reviews) | 1.1 |
| Site Jabber (424 reviews) | 2.4 |
| Weighted average | 2.4 |
Many buyers report a negative experience with Auction.com, with five-star reviews few and far between.
Several buyers describe Auction.com agents as unprofessional and pushy. Customers claim that agents mostly side with sellers vs. buyers. Others say its agents are unresponsive and short with them. Overall, customers warn other buyers to “tread carefully.”
Other customers complain about a shady bidding process that’s unethical and seller-centric. Some buyers say Auction.com gave them misleading or inaccurate information on titling, earnest money, and property listings. Sometimes properties are advertised at one minimum bid and then switched out for a higher one later.
Auction.com’s website and closing process are difficult, according to some buyers. Users mention technical difficulties on the website, which made them lose deals and money. Others complain about a prolonged, months-long closing process.
Most of the five-star reviews of Auction.com don’t offer any explanation. However, the few that do report cost savings on price and attentive customer service over the phone or the website’s chat feature.
Auction.com service quality
Pros
- 13K+ properties to choose from on Auction.com’s database
- Customer service available via phone and online chat
- Experienced investors can score deals on foreclosure properties
Cons
- Doesn’t always update a property’s latest bid status
- Buyers must sign lengthy purchase agreements immediately
- Reputation of bidding up its own customers in an attempt to meet the seller’s reserve price
Auction.com doesn’t offer a high-quality service for buyers.
While Auction.com has plenty of properties to choose from, the company doesn’t provide transparent pricing and legal disclosures for buyers. If you’re a real estate investor looking for a better auction experience, try another platform.
If you’re new at home buying, we recommend working with a top agent to find the best price.
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How does Auction.com work?
Foreclosure and bank-owned auctions have different processes.
Foreclosure auctions (in person)
- Create a free account
- Browse upcoming foreclosure auctions near you.
- Conduct due diligence on selected properties (estimate the property’s value, any repair expenses, etc.).
- Order a title report.
- Attend the auction in-person with your funds.
- If you win, show identification and pay for the property in person.
- Immediately record the deed in your county. (You can’t enter the property until you have your deed.)
Bank-owned property auctions (online)
- Create a free account
- Browse bank-owned properties.
- Conduct due diligence on selected properties (estimate the property’s value, any repair expenses, etc.).
- Order a title report.
- Register to bid on your first property online.
- Review the purchase agreement and addendum.
- If you win, sign the purchase agreement, wire earnest money, and provide proof of funds.
How much does Auction.com cost?
Pros
- It’s free to create an account
- Potential savings when buying a foreclosed or bank-owned property
Cons
- Buyers usually pay a premium of $2,500 or 5% of the sales price, whichever is greater
- $2,500 cancellation fee if the buyer wants out after a winning bid
- Auction.com sometimes bids against buyers to meet seller’s reserve price
You can create an account for free on Auction.com, but if you win an auction, expect to pay additional fees.
Most properties require a buyer’s premium of $2,500 or 5% of the winning bid, whichever is greater. If the deal goes south and you want out, you’ll pay a cancellation fee of $2,500.
Most importantly, Auction.com sometimes bids against you to meet the seller’s reserve price. The company states that once the bidding meets a minimum price threshold, they step back and stop bidding. Still, this doesn’t look good for homebuyers looking to score a great deal.
Auction.com vs. alternatives
Xome
Xome offers buyers a wide range of properties, including residential, commercial, short-sales, and others. It’s free to create an account, and like Auction.com, Xome requires a 5% buyer’s premium if you win.
Buyers like the Xome app, in particular, for its exclusive listings, ease of use, and professionalism.
Foreclosure.com
Foreclosure.com features nearly 2 million foreclosure listings. Like Auction.com, there’s no charge to search. But if you want to place bids or work with a licensed real estate agent, you’ll pay a monthly subscription fee of approximately $40.
Buyers appreciate Foreclosure.com’s alert feature and its user-friendly website.
Get real estate deals at Foreclosure.com today!
Next steps
If you don’t have the cash to put down for an auction, or you don’t want to master a confusing process, explore other options to get a good deal on a home.
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Methodology
- Aggregated customer reviews from across the web and created a weighted average rating
- Checked for complaints with the Better Business Bureau
- Checked how easy the company app or portal was to use
- Compared pricing tiers for services with baseline national averages and other brands