Xome Reviews: Is This Auction Platform Legit?

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  Written by Galina Velgach

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  Edited by Steve Nicastro

Xome (pronounced zōme) is an online real estate auction platform. Sellers can benefit from a fast sale at their desired minimum price while avoiding paying commission. Buyers can find unique or distressed properties that aren’t on the open market and buy them quickly.

For many distressed property owners seeking a fast cash sale, using Xome is an alternative to selling to a cash buyer or iBuyer and can potentially yield a higher sale price. Read on to find out if Xome fits your needs or if another option might be better for you.

» Looking to compare cash offers instead? Clever Offers is a free service that connects you with cash offers from trusted investors nationwide, allowing you to easily compare bids and pick the best deal. Request cash offers from Clever Offers.

» JUMP TO: Should you use Xome? | Customer reviews | Pros and cons | How it works

Xome at a glance

⭐ Customer rating	4.4/5 (1,500+ reviews)
💲 How it works	Sellers set a minimum sale price; buyers bid for 3–6 days
💵 Fees and other costs	No fees for sellers $1,000 deposit, 5% fees for buyers
🚦 Purchase criteria	Residential properties Commercial properties Manufactured and mobile homes Land
🌎 Availability	Nationwide

Should you use Xome?

Xome is great for physically or financially distressed homes that need to sell fast — not so much for properties in excellent condition. When speed is your main concern instead of price, compare Xome with other companies that buy houses for cash using a top-rated offer comparison service, like Clever Offers.

Consider Xome if you:

• Need to sell fast. You can typically auction the home in under a week and close in about 20 days.¹ Compare that to selling on the open market over 2–3 months.
• Need major repairs. Xome buyers are usually cash investors searching for distressed properties and are prepared to buy your home as is. But be prepared to receive a low offer for a particularly distressed house.
• Are behind on the mortgage. Xome accepts homes in all financial states, including bank-owned, short sales, and pre-foreclosures. Just make sure your bank is aware of your plans and has cleared the sale.
• Inherited a property. An auction can help you get rid of an inherited property in under a month without paying any realtor fees or closing costs.

If speed is not your main concern and your property is in good condition, it can likely fetch a higher price from a traditional sale. You can still save money on realtor fees by listing with a low commission realtor, and you’ll have the added security of knowing the sale meets all legal requirements.

Xome reviews: What customers are saying

Most reviews of Xome are positive, though many aren’t recent. Positive reviews tend to be from buyers who are happy with the selection of available properties and with how easy the app is to use.

Some reviewers, especially those participating in auctions, found the process efficient and were able to close on properties within a short period, typically around 30 days.

Many reviews also mention that the platform is easy to navigate, with a straightforward bidding and purchasing process. Buyers and sellers alike appreciate the intuitive interface and clear instructions.

Recent reviews within the past year come from the Better Business Bureau, many of which are complaints. However, that’s likely because consumers generally leave negative reviews more often than positive ones, and the BBB is a popular site to post complaints.

Some complaints include Xome not doing ample verification that the houses for auction were legally eligible for sale, bidding on the auctions to artificially drive up prices, and posting homes without owners’ permission.

Xome: Pros and cons

For sellers

Xome is definitely geared toward home sellers and offers them a simplified, cost-effective alternative to a traditional sale. As a seller, you can list your home as is, without the need for repairs or staging, which can save time and effort. And sellers can avoid paying traditional real estate commission, which typically range 5–6%.

Xome also offers the benefit of including the property on the MLS, increasing its visibility to potential buyers both on and off the platform. Another significant benefit is the Reserve Price feature, which ensures that the home won’t sell for less than a predetermined amount.

Finally, sellers have more control over the sale terms, as they retain the flexibility to accept or reject a final bid, giving them greater control over the transaction.

For buyers

The upside for buyers is a streamlined bidding and purchase process and an exclusive selection of homes that aren’t typically on the open market.

Buyers generally face more risks on Xome than sellers do. As with many as-is sales, the homes on Xome could have extensive damage, and no inspection contingencies let buyers back out.

The home may also have issues such as undisclosed liens. According to a Xome representative, “Xome relies on sellers to furnish all the required information about a property, including its legal status, to make sure it is eligible for sale.”²

Buyers must pay a “Buyer’s Premium” — 5% of the winning bid or $2,500, whichever is greater — along with a $1,000 deposit for each property bid on. These upfront costs can be substantial, particularly for those buying properties to flip. However, the transparent fee structure can simplify the budgeting process.

Finally, the winning bids are nonbinding — the seller can back out, even if you were the top bidder. You’ll get your $1,000 deposit back, but it can disrupt your timeline.

How does Xome work?

For sellers

Selling a property with Xome is designed to be straightforward and cost-effective. Here’s a quick summary of how it works:

1. Set your minimum and target prices. The Reserve Price (your minimum acceptable bid) is the lowest offer you’ll accept. The Listing Price is more of a starting point for a potential bidding war.
2. List your home. It’ll be live on Xome.com during the auction period and cross-listed on the MLS, maximizing your exposure to buyers.
3. Wait 3-6 days. You can set the auction duration. Buyers bid and compete for your property using your Reserve and Listing Prices. Xome will also bid on your home to drive up the price but won’t actually buy the home.
4. Accept an offer and close. The buyer is typically responsible for all closing costs, depending on the property, while you pay for title insurance and prorated utilities. Finally, you’ll sign a quitclaim deed, special warranty deed, or general warranty deed over the buyer.

For buyers

When you make an account on Xome, a third-party vendor completes a one-time identity verification.

1. Register for an auction. Xome will place a $1,000 hold on your credit card, which is refunded if you’re not the winning bid. Xome also recommends researching a property in full before registering.
2. Start bidding. You have 3–6 days to bid in pre-determined increments during the auction. Some properties allow you to make an offer before an auction starts.
3. Buy the house. Deposit earnest money within 48 hours, pay the “Buyer’s Premium” (5% or $2,500), and be prepared to show financing.
4. Close. Closing takes about 20 days, according to Xome, but ranges 10 to 30 days. You’ll pay all or most of the closing costs, then receive a deed and take ownership.

Fees and other costs

Buyers are responsible for the majority of fees:

• $1,000 refundable bidding deposit
• “Buyer’s Premium” of 5% or $2,500 (whichever is greater), comparable to the 4-6% realtor commission that sellers typically cover
• Earnest money
• Closing costs

Sellers typically pay only a home’s carrying costs until closing. However, the fee split can be negotiated. In some cases, such as a short sale, the buyer and seller split closing costs.

Purchase criteria

There don’t appear to be restrictions on the types of homes that can be auctioned on Xome. For example, the properties can be residential, commercial, or land. The homes can also be in any physical or financial condition, making Xome popular for distressed property sales.

This means that homes for sale could even be bank-owned, pre-foreclosures, or short sales — so long as the seller has the legal right to list. However, Xome relies on both the sellers and buyers to have done their due diligence: for sellers to not have any liens against the house and for buyers to research the property before bidding.

Availability

Xome operates online and via app, so homes can be auctioned nationwide.

Recommended reading

10 Best Companies that Buy Houses for Cash. These companies buy houses for cash, helping you sell your home quickly and conveniently.

Clever Offers: A Better Way to Sell Your House for Cash? Learn how Clever Offers works to sell your house fast, and why the company partners with cash buyers to get you the best cash offer on your house.

Selling a House As-Is: When and How to Do It. Thinking about selling a house as is? Find out the pros and cons, when it makes sense, and your options.

I Want to Sell My House for Cash: Where Do I Start? Learn how to sell your house fast for cash by either listing it with a realtor, selling to a cash buyer, or selling to an iBuyer.

Sources

1. Xome Help and FAQ, https://www.xome.com/auctions/content/content.aspx?categoryid=747168&lpath=/auctions/auction-help ↩︎
2. Better Business Bureau, Xome Inc. Complaints, https://www.bbb.org/us/tx/lewisville/profile/real-estate/xome-inc-0875-90524647/complaints ↩︎