Hubzu Reviews

Hubzu is an online real estate auction platform available nationwide. The company connects sellers of foreclosed, real estate–owned (REO), and short sale properties with buyers who want to bid on them.

The platform charges no direct fees to sellers, but buyers should be prepared to pay an additional buyer’s premium (usually 5% of the bid) and other charges, such as technology fees.

Before selling on Hubzu, you may want to look into alternatives. Consider using a platform like Clever Offers that helps you compare all of your options, including selling to cash buyers and selling on the open market with a realtor. This way, you're more likely to sell for the highest price and on your timeline. Fill out a short form to get started.

Should you use Hubzu?

Whether you should use Hubzu depends on your particular situation and expectations. This platform works best for foreclosed and real estate–owned properties.

If you simply want to sell your home quickly or for cash, there may be better alternatives to consider. These options include selling to a cash buyer or selling with a low-cost realtor who can implement a strategy to sell fast. The latter can help you save thousands on agent commission while still getting professional marketing that will maximize the final sales price.

If you’re a first-time home buyer, it also may be wiser to work with a professional and focus on a more traditional sales process to avoid the fees and uncertainty of an auction platform. However, if you’re an experienced investor who doesn’t mind buying a fixer-upper, Hubzu may be the right place for you.

How much do Hubzu homes sell for?

Foreclosed homes and real estate–owned properties make up a significant portion of the listings on Hubzu, so homes on the platform likely sell for 15–20% below the home’s fair market value. The exact price depends on multiple factors, including property condition, location, market dynamics, and the number of bidders the auction attracts.

Hubzu properties can go through multiple auction cycles if the reserve price is not met. So, it's possible for properties to sell for much more than the initial bids as well as for properties to stay on the platform for months without receiving a bid that tops the reserve price.

Hubzu fees and other costs

Hubzu fees for sellers

The company advertises no direct fees for sellers. When listing your property on Hubzu, be ready to pay a $995 program fee that's used to market the home. However, this cost is refunded to you if the property sells through Hubzu’s auction.

Another expense sellers should keep in mind is realtor fees — typically 5–6% of the home’s price, though you can pay less with a low-commission agent. Hubzu is not an FSBO website, and the company requires sellers to have a listing agent.

Hubzu fees for buyers

Buyers face multiple fees when purchasing through Hubzu. Some of them are standard for the industry, while others (especially the substantial 5% buyer’s premium) are Hubzu-specific.

Hubzu alternatives

Hubzu vs. other auction platforms

Since some of these companies do not publicly display data on their transactions, the number of buyers, or the number of listed homes, we used web traffic as one of the indicators of market reach and the platform’s popularity among users.

Hubzu’s main competitors are Auction.com and Xome, Inc., which lead the space of real estate auction platforms. These might be worth looking into for buyers who are set on using an auction platform but looking for a wider selection of properties in their region than Hubzu provides.

Overall, Hubzu is a solid choice for a real estate marketplace for foreclosed and REO properties. Many users praise its backup offer and automatic bid extension systems, which many of its competitors lack.

Hubzu vs. cash buyer sales

If you’re selling distressed property and don’t want to handle any repairs, both Hubzu and companies that buy houses for cash can be viable options.

If you prioritize sale speed, iBuyers and “we buy houses” companies can offer a much quicker process. In many cases, they can close in 7–14 days, while Hubzu claims a 42-day average timeline. What’s more, cash buyers can guarantee closing with more certainty, since there’s no risk of no interest from buyers or a buyer’s financing falling through.

On average, cash buyers offer 50–70% of a home’s value. However, there’s a way to receive more from your home. For example, if you work with a network like Clever Offers, you can get offers from multiple cash buyers and choose the one that works best for you. You’ll be able to close in as little as 7 days.

Hubzu vs. traditional sales

Hubzu is a real estate auction platform with a sales process that's significantly different from that of a typical brokerage. The main differences include the speed of sale, additional costs, and buyer’s protections such as inspection and contingencies.

It's typically possible to sell your property faster using auction sites. Hubzu states that its sales take 42 days on average.[1] However, the only publicly available information about Hubzu’s sales speed comes from 2012, and it’s hard to verify if this timeframe has changed.

One of the reasons for a quicker sale is the ability to bypass contingencies and inspections, which can be beneficial for sellers of distressed properties. However, this may leave buyers less protected. If you decide to purchase a house through Hubzu, be aware that it may come in any condition.

The cost structure is another difference. A traditional sale includes a 5–6% commission split between the buyer’s agent and the listing agent. For sellers, the costs would stay the same (Hubzu charges no direct fees to sellers), but buyers must pay a technology fee and a 5% buyer’s premium.

If you’re selling a distressed property or trying to sell quickly, working with a realtor can help you get the most out of a transaction without sacrificing speed. To save some money, look into hiring a discount broker — an agent who charges a fraction of the commission while maintaining full service.

Hubzu reviews: What customers say

Overall, Hubzu has mostly positive reviews from its customers, with an average rating of 4/5 from more than 700 reviews. Most comments date back to a few years, which may signify the decreasing popularity of the service.

✅ Good for finding foreclosed properties

A few property investors mentioned that Hubzu’s auction is their go-to place to find foreclosed homes, and they enjoyed the overall process.

Hubzu is great if you are looking for house auctions or foreclosures. I liked the bidding process and would definitely use this to buy foreclosed properties.

— Chase V., Winter 2024, Best Company

✅ Convenient backup offer system

Multiple sellers praised the convenience of the backup offer system. The platform allows sellers to choose any offer, not necessarily the highest. If the highest bid doesn't meet their expectations in terms of, say, financing, a seller can proceed with another offer.

Best online auction website. Love their backup offer system that allows quick move to the next qualified offer instead of relisting that wastes sellers time. I’d recommend use hubzu list your property. It beats auction.com and the like by miles.

— Anonymous, Winter 2024, Reviews.io

❌ Issues with bidding fairness

One of the most common Hubzu complaints was problems with bidding and sellers receiving offers after bidding was over.

Not worth working with. The auctions don't mean anything. They continue to take bids after the auction is over so whether you win or not, it doesn't matter. People just wait to see what the auction goes for then submit a higher backup offer. Whether you win or not does not matter. Worst auction system I've ever dealt with.

— Anonymous, September 2024, Reviews.io

❌ Lack of transparency with reserve prices

Some buyers with a genuine interest in a property mentioned not being able to win an auction without knowing what the reserve price was. If the reserve is not met, the property would go through another auction round, with no ability for buyers to propose a satisfactory offer.

Bidders beware. Hubzu allows the sellers to reject the bids and re-list the property repeatedly. If the sellers set the minimum bid, and then the bidding ends with a high bidder, the seller shouldn't be allowed to constantly refuse the highest bidder and then continue to redo the listing because they don't like the results. I have been the highest bidder twice in the same auction and they continue to extend out the bidding.

— Don R., September 2024, BBB

How does Hubzu work?

For sellers

Listing your home through Hubzu differs from listing traditionally. Here’s what the process looks like:

1. Fill out a form or call Hubzu’s team to register on the website. To sell on Hubzu, you have to work with a listing agent and pay Hubzu’s Signature Homes program fee of $995. The fee is fully refundable if you sell the property to a Hubzu bidder.
2. Receive a call from an account manager to verify your details.
3. Sign and return the agreement and pay a participation fee.
4. Upload the details of your property on the platform, providing the necessary photos and descriptions. Choose your desired auction length: 14, 21, or 28 days.
5. Your property goes live after the account manager reviews the listing and approves it.
6. If a few bids come in, you can select the best offer to accept. If you’re not satisfied with the bids, you can put your property through another auction cycle. Hubzu recommends entering at least four cycles to maximize property exposure.

For buyers

Hubzu may be overwhelming for buyers just getting started with the platform. The property’s condition, financing requirements, and contingencies depend on the particular seller. Here’s what you can expect:

1. Register for a free account and verify your identity.
2. Search for a property that meets your criteria. You can filter results by the property type, asset type (bank-owned, foreclosure, short sale, etc.), property status, and other features, such as price, square footage, and number of rooms.
3. Before placing a bid for a property, have your funds ready. If you want to finance your purchase with a mortgage, get pre-approved. However, be aware that some sellers may only accept cash offers.
4. When you find a property you’re interested in, review all the details before bidding. For every property, you can see the property fees you’d have to cover, such as the buyer’s premium and the size of the earnest money deposit. You can also see a sample of a purchase and sale agreement and learn whether there’s the option to have the property inspected.
5. Place the initial bid. Note that properties have a reserve price, and if it’s not met, the listing could go through another auction cycle.
6. If you're the winning bidder, you’ll hear back within a few days. You must review and e-sign the purchase and sale agreement within 48 hours and pay an earnest money deposit.
7. Close on the property.

What kinds of homes does Hubzu auction?

Hubzu accepts a wide range of property types for sale, including studios, single-family homes, multi-family houses, condos, townhouses, mixed-use properties, mobile homes, and land parcels.

When it comes to sales categories, Hubzu offers traditional sales, bank-owned properties, foreclosures, short sales, and fixer-uppers.

Where is Hubzu available?

Hubzu is available in all 50 states; Washington, D.C.; and Puerto Rico. The company has a heavier presence in the Midwest, Northeast, and some parts of the South.

Is Hubzu legit?

Yes, Hubzu is a legitimate online auction platform that facilitates real estate transactions. The company was founded in 2009[2] and is currently led by Travis Britsch.[3] Hubzu has been owned by Altisource Portfolio Solutions S.A. (NASDAQ: ASPS) since 2012.

Hubzu has sold over 265,000 properties amounting to $29.9 billion as of 2021 (the last available public data).[4] The company makes money through buyer’s premiums and transaction fees.

Hubzu history and news

Hubzu’s online presence seems to have declined significantly since 2020, and the company hasn’t announced many changes or updates since then.

On Nov. 30, 2023, Hubzu expanded its partnership with NCST (National Community Stabilization Trust) to boost the supply of affordable housing. Thanks to these changes, Hubzu’s real estate–owned (REO) properties will be available under FHA’s CWCOT second chance program to NCST and its community of buyers.[5]

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