Auction.com is a national marketplace that connects homebuyers with residential, bank-owned, and foreclosed properties through online and in-person auctions. Private sellers can also list their homes for auction or direct offers.
The site doesn’t own the properties or set prices—instead, it aims to provide a platform for smooth real estate transactions. Most deals are cash-only, and many of the homes for sale need repairs or renovations. Auction.com is known for quick sales and exclusive access to homes typically unavailable on the Multiple Listing Service (MLS).
Auction.com appeals to homeowners looking for a fast deal, but the offers tend to be below market value. And while the company promises transparency, many online reviewers say costly issues weren’t disclosed before they purchased a property.
Buyers should tread carefully and read the site’s fine print to understand how homes are sold. Similarly, sellers may want to shop around with other cash buyers or iBuyer companies.
You can also use a free service like Clever Offers to find offers from trusted cash buyers in your area. There are no added fees or obligation to move forward, and you can often sell your home in about a week.
Auction.com at a glance
| ⭐ Customer Rating | 1.96/5 (481 reviews) |
| 💲 Offer range | Likely average* |
| 🤝 How It Works | Sell your home via auction or direct offers from potential buyers |
| 💵 Fees & other costs | No fees for sellers, but buyers may pay a 5% premium on some properties |
| 🚦 Purchase criteria | Any, including foreclosed, bank-owned, or distressed properties |
| 🌎 Availability | Nationwide |
*Based on an internal survey of 764 real estate investors indicating that house flippers typically offer no more than 70–80% of a home's after repair value
Auction.com pros and cons
Pros of Auction.com:
- No platform fees for sellers
- Sellers set their sales terms
- Nationwide reach for potential buyers
- Database of 13,000+ distressed properties
Sellers can list properties in any condition to be auctioned off or sold directly with no additional fees. They can also choose flexible options like an extended move-out period. Plus, Auction.com’s nationwide reach puts your property in front of millions of potential buyers. Such competition could increase your offer amount.
Buyers have free access to an extensive database of distressed properties they can purchase at below-market prices. Live auctions are held in-person and online, and buyers can also negotiate directly with sellers.
Cons of Auction.com:
- Below-market offers
- Undisclosed property damage
- Opening bid is lower than what the seller will accept
- Tight timeline for auction winners
Like other companies that buy houses for cash, auction platforms tend to attract offers below market value. The investors who bid on these platforms typically pay only about 70% of a home's after-repair value, so weigh your options carefully before committing to an auction.
There are more downsides for buyers. For instance, you don’t have access to the property before the sale and must rely on the seller’s photos and other documents. People are selling houses in poor condition, so you risk uncovering expensive damage after purchase.
In addition, most properties have a reserve price — the minimum amount the seller will accept — but it isn’t listed in the property details. Instead, an opening bid is given, but reviewers say it’s lower than the reserve. If the highest bidder doesn’t meet the reserve price, the home will be pulled from the auction and go back on the market later.
There’s also a strict timeline for winning bidders in online auctions. They have only six hours to submit contact information, sign the purchase agreement, and send the earnest money deposit and proof of funds. If the highest bidder can’t do this, another buyer can match the bid and buy the property.
Top Auction.com alternatives
Auction.com competitors include other real estate auction sites, 'we buy houses' companies, iBuyers, and offer marketplaces.
‘We buy houses’ companies range from local mom and pops to nationwide franchises like We Buy Ugly Houses to local house flippers. Like auction sites, they'll buy properties in almost any condition and can often close in as little as 1–2 weeks.
iBuyers like Opendoor pay closer to market value than traditional real estate investors. But they also have narrower purchase criteria, extra program fees, and limited availability.
Cash offer networks like Clever Offers help you source cash offers from multiple buyers, which could lead to a more competitive sale price and better terms.
Here are some of the top alternatives to auction.com.
Auction.com vs. a realtor
Selling on Auction.com can be a quick way to get a cash offer. The site has more than 7.5 million registered users[1], which can yield more competitive offers. There are no additional fees, and you can auction your home or accept direct offers from buyers. Either way, though, you risk a much lower sale price.
Auction.com requires most sellers to work with real estate agents to guide them through all contractual and disclosure requirements. If you don’t have a realtor, the site will assign a local agent to you. Sellers with a proven history of real estate transactions may qualify to sell without an agent.
By contrast, traditional transactions can fetch a higher price, even when selling a home as-is. A real estate agent can run a comparative market analysis to help you determine the property’s fair market value and set an appropriate list price. If you’re concerned about paying the agent’s fee, low-commission realtors offer the same full service for less than the average real estate commission (1.5% vs. 2.5–3%).
For sellers who aren’t in a hurry, a realtor can recommend important repairs before selling your house. You’ll be able to ask for more money, which should help you make up the costs.
Find: The best real estate commission rates near you
Auction.com reviews: What customers say
| Source | Average Rating | Review Count |
|---|---|---|
| BBB | 1.1 | 20 |
| SiteJabber | 1.9 | 434 |
| 3.5 | 26 | |
| Trustpilot | 3.2 | 1 |
| Weighted Average: | 2 | 481 |
Auction.com reviews are mostly negative. The company has an average customer rating of 1.96/5 from 481 online reviews. It is not BBB Accredited.
We found no recent reviews from sellers, only buyers. While some users said they had positive experiences, many referred to Auction.com as a scam. Several reviewers said listings didn’t disclose significant and expensive property issues. Others said the bidding process was misleading, with the company bidding against buyers to raise the sale price.
Here are some common themes we found in buyer reviews.
What customers love
- Makes investing easy and accessible
Common Auction.com complaints
- Undisclosed property damage
- Inaccurate and misleading information
- Opening bid below what seller will accept
✅ Makes investing easy and accessible
Some older reviews said the buying experience was easy. One of the only recent positive reviews referenced the site’s accessibility.
Provides great online auction services to make real estate investment accessible to all.
— Melanie Davis, June 2024, Google
❌ Undisclosed property damage
Multiple reviews said Auction.com didn’t disclose all issues and damage to a property. In some cases, buyers faced expensive repairs.
Purchased a home on the website, and it had a lot of hidden damage and needed extensive, costly repairs. Agent hid pictures online and took key out of lockbox so buyers could not see inside. I would never purchase again due to the trickery and extremely poor condition houses that need complete rehabs.
— News Info, April 2024, Google
❌ Inaccurate and misleading information
In addition to undisclosed damage, reviewers have found other inaccurate information about the property, such as its value. Several reviews also pointed to a misleading bidding process.
I have had issues with Auction.com not putting pictures on their website that are accurate in the description of their homes. They also overinflate the value of their homes. I was currently suspended because I did not sign a contract after winning a bid that I actually did not win, but they dropped their bids and the reserve and then declared me the winner. I then decided I should verify the information on the website. Nothing was accurate. Because I didn’t go thru with the deal, I was retaliated against and suspended.
— David V., June 2023, SiteJabber
❌ Opening bid below what seller will accept
Reviewers expressed frustration at the bidding process, saying Auction.com’s published opening bid is often far lower than the price the seller will accept. Some also said the site will bid against potential buyers until the offer meets the reserve price, which isn’t disclosed.
Do not waste your time placing a bid on bank-owned properties. They do not disclose the “real” opening bid, which is ALWAYS higher than the one published.
— Mike Thaler, July 2024, Google
How Auction.com works
Auction.com provides a marketplace of more than 13,000 distressed homes, foreclosures, and bank-owned properties. It hosts in-person and online auctions and lets buyers and sellers negotiate offers directly.
Selling with Auction.com
Selling your house can be stressful, especially if it has damage. Auction.com’s SmartSale selling process aims to streamline things for homeowners.
- Submit basic property details online. An Auction.com rep will contact you to learn more and explain next steps.
- Choose how you want to sell. You can list your property for auction or receive direct offers.
- Set your sales terms, such as whether you’ll accept financing. Upload photos and documents and publish your listing.
- Track real-time bids and offers on your online dashboard. Select the best offer or accept the highest bid.
- Finalize the contract and close.
Listing your property on Auction.com can take about 7 days. The company requires most sellers to use a realtor to help navigate the necessary paperwork. If you can’t find a real estate agent, Auction.com will assign a local one to you.
Buying with Auction.com
Purchasing a property through Auction.com can be tricky. These are the basic steps:
- Create a free profile.
- Register to bid on the home.
- Submit a registration deposit (if required).
- Research the property.
- Read the fine print, as each property is different.
- Prepare your finances.
- Bid on the property or submit a direct offer.
You must register to bid on each property you find. New users are limited to three registrations. Once you successfully close on a home, you can register for more properties.
Winning bidders must provide contact information via an online form, then sign and return the purchase agreement. You must also provide proof of funds to Auction.com and send an earnest money deposit to the closing company.
The timeline for completing these steps varies by transaction type. Some allow one or two business days for each step, while online auction winners have only six hours to complete the process. If the highest bidder can’t submit everything in time, another can win the property through a “Match the Bid” program.
Buyers can also make direct offers on certain bank-owned or private seller properties. This option doesn’t apply to auctions.
It’s important to note that each property listing on Auction.com is different and will have varying requirements. So, it’s critical to read the listing carefully. Generally, you’ll see:
- Property size, type, etc.
- Estimated resale value or rent
- Opening bid
- Similar properties
- Local comps
- Property information report, title and liens, purchase agreement, and other documents
- Transaction details
Auction.com fees and other costs
Auction.com is free for sellers and buyers. However, the highest bidders in online auctions must pay a premium — typically 5% of their offer.
Again, read the property listing carefully to see if other fees or costs are required.
Is Auction.com a legit company?
Yes, Auction.com is the largest online marketplace of distressed, bank-owned, and foreclosed properties. It hosts over 12,000 in-person and online auctions each year nationwide. Since its founding in 2007, the company has sold more than 533,000 properties worth $66 billion.
The site has 7.5 million registered users and more than 13,000 available properties. Jason Allnutt has been CEO since 2018 and worked with the business for 16 years. The company also does community service work through Auction.com Cares, supporting programs that improve housing, neighborhoods, and veterans’ causes.
What kinds of properties are eligible?
Auction.com doesn’t specify requirements for properties. It specializes in distressed, bank-owned, and foreclosed homes.
Auction.com locations
Auction.com hosts in-person auctions across the country, and its online auctions have a national reach. The business is headquartered in Irvine, California, and has offices[2] in:
- Las Vegas
- Phoenix
- Chicago
- Corona, California
- Mineola, New York
- Plano, Texas
Bottom line: Is Auction.com right for you?
Auction.com gives buyers streamlined access to foreclosed or bank-owned homes through in-person and online auctions. If you’re a seasoned investor with plenty of financing, you’ll likely have an easy time navigating the properties and placing bids. Tread carefully, though, and do your research. Several buyers have found hidden damage after purchasing.
Sellers needing to quickly offload distressed property without making repairs may find Auction.com a good fit. However, you won’t get close to market value for your home, and it could take time to find bidders willing to pay your list price.
If your home is in relatively good condition and you're under no particular pressure to sell, you have better options available.
- If you want to sell your home as is, but at a higher price than you'd get from an investor, you might consider an iBuyer. While most iBuyers have stricter selling criteria and added fees, iBuyers often offer more money for homes than cash investors.
- If you want to make the most on your home sale, working with a realtor who offers better-than-average commission rates is the way to go. Many discount brokers provide full service at a fraction of the cost and work on your selling timeline. They can also help you sell your home as is, signaling to buyers that you don't want to make any repairs.
- If you want the speed and certainty that a cash buyer can provide, getting competing offers from multiple cash home buyers is the best way to ensure you get a good deal. Free services like Clever Offers help you find the best offers from vetted cash buyers in your area.
Curious how much cash you could get for your home? Answer a few quick questions, and get competing offers from investors, iBuyers, and more. You can review offers without obligation and sell in as little as 7 days – with no added fees or obligation to move forward.
FAQ
Does auction.com charge a fee?
No, Auction.com does not charge buyers or sellers a fee. However, homes purchased through online auctions often require buyers to pay a premium — usually 5% of the offer.
Is it safe to buy from auction com?
Auction.com is a legitimate business, but buying through an auction is risky because you could find undisclosed damage to the property. Research the home before you buy it.
Is auction.com cash only?
Most properties on Auction.com are cash only and must be paid in full by closing. However, read the property listing carefully, as some private sellers may let you finance the home.
Related reading
What to Know Before Selling a House in Poor Condition: Finding the right buyer can be tough if your home is in poor condition. Read our guide to learn all your options, including the fastest ways to sell and how to get the best possible offer.
Are "We Buy Houses" Companies a Rip-off? Selling your home to a "we buy houses" company can be a hassle-free solution — or a decision you might regret, depending on your specific circumstances. Learn when it makes sense to accept a cash offer instead of listing your property on the open market.
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About our reviews
Our company reviews are powered by hundreds of hours of research. To evaluate and rank cash home-buying companies, we analyze thousands of customer reviews, secret-shop each company, and look at publicly available data for indicators of offer quality, customer service, fees vs. value provided, trustworthiness, and more. Whenever possible, we also talk to customers, company reps, and industry professionals (such as real estate agents) who have direct experience working with the brand.