Real estate auctions have continued in popular, especially as people reply more on technology to buy and sell homes, and digital auctions increase in their popularity. Auction web sites are also a great way for real estate investors and homebuyers to efficiently locate and purchase real estate at outstanding prices.
In this article, we briefly review four of the top online real estate auction websites, giving you the pros and the cons of each, to help real estate investors make more money. And at the end, we give you a bonus list of real estate auction websites you should investigate.
Overview of Online Real Estate Auction Websites
For sellers wanting to move real estate quickly, listing it on an online auction website is an excellent tool. The best online real estate auction sites have built-in marketing platforms to market properties for sale, which helps generate interest, find potential buyers, and quickly sell properties at a good price.
For buyers, real estate auction sites are a great way to quickly search for properties, do initial research, bid on properties at auction, and purchase properties at a very good price.
When using an online auction website, be sure to understand the terms of participation, the buyer’s premium, terms of sale, disclosures, fees, information regarding inspecting the property prior to the auction, etc.
#1 Auction.com
Auction.com launched in 2007, and unlike many other auction sites, it also offers properties that are being auctioned off by third parties, which significantly increases the number of auctions that can be viewed on the website.
Pros:
- Closing usually takes 30-45 days.
- Their auctions are offered nationwide.
- Auctions included on the website may also be from third party services, which can increase the number of properties auctioned on the site.
- Extensive help center for buyers with forum.
- Easy to navigate website.
Cons:
- Buyers need to be aware of the different fees for real estate auctions.
- Information for properties by third-parties may not be complete.
#2 Hubzu
Hubzu was founded in 2009 and has locations across the world. This website sells residential properties and land. They also sell homes with traditional sales rather than just online auctions.
Pros:
- Website displays properties that are for sell via auction and traditional sales, increasing the number of homes you can compare and contrast online.
- Closing usually takes 30-45 days.
- Their auctions are offered nationwide.
- Auctions included on the website may be from third party services.
- Easy to navigate website with FAQs.
- Auctions will note if the reserve price has been met.
- Some auctions have an “End Auction Now” button that allows a bidder to become the instant winner.
Cons:
- Buyers need to be aware of the different fees for real estate auctions.
- Only has residential properties and land listed on the site.
- Liens are not discovered for the property until the title search process starts.
#3 Hudson and Marshall
Hudson and Marshall has been in business over 50 years and encourages buyers to utilize a real estate agent to help them through the process; therefore, they are considered “Agent Friendly” in the auction world. They sell residential properties, REO properties that are both residential and commercial, pre-market properties, lender-approved short sales, commercial auctions, and land auctions.
Pros:
- Closing usually takes 30-45 days.
- Auctions are offered nationwide.
- Properties are sold with a clear title unless noted in the description, which means that there are no other liens or back taxes on the property.
- Sellers pay the Title Insurance.
- Inventory on the website updates in real time.
- Some properties have a “Bid Now” feature.
- Properties are noted as “Reserve” or “Absolute.” “Reserve” means there is a reserve price that must be met for the seller to approve the final bid. “Absolute” means the property will be sold to the highest bidder no matter the price on the day of the auction.
- Easy to navigate website with FAQs.
Cons:
- Buyers need to be aware of the different fees for real estate auctions.
- Only shows real estate Hudson and Marshall is auctioning.
- Not all auctions will end in a bid being accepted.
- “Bid Now” feature is first-come-first-served, and the seller take bids in the order they come, meaning that a property may be sold before your bid is reviewed.
#4 Williams & Williams
Williams & Williams prides themselves on being a fourth generation auction house, and as of April of 2016, has a little over a hundred auctions throughout the nation. This website offers both on-location and online auctions with dates when prospective bidders may view the properties. This auction website works with auctions that sell residential, commercial, luxury, land, farms, and ranches.
Pros:
- They offer a 30-day closing period.
- Their auctions are offered nationwide.
- Help center for buyers.
- Inventory on the website is updated in real time.
- Properties are auctioned with a reserve, unless otherwise disclosed as “absolute” or “without reserve”.
- Easy to navigate website.
- There is a section on financing for buyers who would like to explore financing real estate purchases.
Cons:
- Buyers need to be aware of the different fees for real estate auctions.
- Only shows real estate Williams & Williams is auctioning.
- Not all auctions will end in a bid being accepted as sellers in auctions with a reserve can take two weeks or longer to decide on the bid offered.
- Insurable title is included in the average closing costs.
Bonus List of Real Estate Auction Websites for Investors
Real estate investors scour the internet for investment properties they can quickly purchase at a great price. So, in addition to the featured list of real estate auction websites, here is our bonus list for real estate investors.
#1 RealtyBid.com is a leader in online real estate sales, having auctioned more than 100,000 properties online, and RealtyBid International, LLC is a Chronos Solutions affiliate.
#2 Xome has one of the largest, exclusive selections of real estate owned (REO), short sale, foreclosure, luxury, and commercial properties available at auction.
#3 US Dept of the Treasury Seized Real Property Auctions is a government web site that advertises auctions of seized Real Property for sale throughout the United States and Puerto Rico and includes single and multi-family residences; commercial and residential land; commercial buildings and warehouses; and operating businesses. These properties have been seized and forfeited due to violations of federal laws enforced by the U.S. Department of the Treasury.
Wrap-Up
Whether you are planning on purchasing your dream home or looking for investment property, buyers should do extensive research before bidding. First-time auction buyers are well advised to use the services of a real estate agent, which may or may not affect the price paid for the property.
Graystone Investment Group
Graystone Investment Group is an experienced real estate wholesaler in Tampa Bay.
Unlike other wholesaling groups, we provide clients with a turnkey process at no extra charge. We find properties that we resell to investors at discount prices, while also connecting them with private financing. We also coordinate with rehab and management companies we’ve worked with for years.
To learn more about profitable real estate investments in the Tampa Bay area, fill out our Investor Profile or contact us direct.
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