Auction.com

This is our 3rd time around with a short sale with BofA and my seller keeps qualifying for different incentive programs.  This time it is "streamline cooperative" and listing with Auction.com offers her an extra incentive......so of course she is electing to do it.  I just finished 2 5 hour open houses (which they require) and our bidding period starts on March 27th.  Since we have already had 2 buyers walk with a HAFA short sale (home needed too much work) I am rather happy that Auction.com gives no inspection period and requires the $2500 deposit upfront.  Not sure if that will eliminate lots of buyers, but we will just have to wait and see. It is too easy for buyers to walk.

 

So in this case.....we were not forced to use Auction.com but seller jumped for joy at the opportunity because they offer an extra incentive.  I guess the 5% premium helps pay that. I already have a signed agreement that I receive 6%...because of it being a short sale.... so that is good for buyers who have an agent at least.

 

We will have to see what happens....if we get a buyer that follows through I will be happy.  We may not meet the reserve...we'll see.  I don't know if I would be so happy walking a buyer through the process though.  I have told the ones that come through NOT to get caught up in the frenzy and overbid. That is where the danger is.  ADDRESS EDITED OUT BY MODERATOR

 

I think Auction.com may be good as a last ditch effort......but I don't think it should be required....my verdict is still out.....

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Replies to This Discussion

Permalink Reply by Wayne Brooks on March 25, 2013 at 3:13am

I haven't been "fortunate" enough to have to do an auction.com short sale yet, but I doubt you're really going to get 6%, or even 3%, just on the selling side.

Permalink Reply by Jeanine Thames Glassman on March 25, 2013 at 3:25am

Here is the agreement. 

Permalink Reply by Wayne Brooks on March 25, 2013 at 5:29am

Jeanine, thanks for posting.  I'd be curious to hear from other agents who've had a short sale listing sold through the actual "auction" at auction.com.  Does auction.com also become the "Selling Broker" and take 3% from the 6%?

Best of luck, let us know how it turns out.

Permalink Reply by Jeanine Thames Glassman on March 26, 2013 at 4:09am

No......Auction.com is not automatically the selling broker......although if a buyer just bids on their own, then no selling broker will be paid. (and I will just receive 3%)  As I understand, there will be a place for bidder to name their selling broker once the bidding starts, or once they win the bid.

Permalink Reply by Janis Schade on March 25, 2013 at 11:00am

I have also not had the pleasure of doing the Auction.com yet.  Who pays the $2500 deposit upfront, and what is it for?  Also, you mentioned other incentives for the seller.  What is the 5% premium, and who pays it, and who gets it?  Just asking a lot of questions because I know it's coming my way. Thanks.

Permalink Reply by Jeanine Thames Glassman on March 26, 2013 at 4:06am

Hey Janis.....go to Auction.com and you can get lots of the info there.  Bidders are required to put up a $2500 hold on a credit card in order to bid. (like when you rent a car)  and the 5% premium is added onto the purchase price. Buyer pays it and it goes to Auction.com.   There is a lengthy Terms and Conditions Document you can access but you have to pull up a property first.

Permalink Reply by Keji Ogunleye on March 26, 2013 at 6:37am

Auction.Com chargeing buyers 5% is just ridiculous and I can't imagine anyone going to overbid.

Permalink Reply by Auction DotCom on March 26, 2013 at 1:41pm

Hi Jeanine,

We’re happy to hear that your seller chose to list their short sale with Auction.com! There are several key benefits to listing agents working with Auction.com on a short sale. You get paid your full commission, and you and your seller benefit from our marketing expertise. We invest $30+ million in marketing annually to drive exposure and awareness, and we also have a marketing database of several million opted-in customers to market these homes.  Due to our strong relationships with many servicers, we have built improved processes, communications and escalation procedures to help make these transactions move more quickly and with more transparency to the seller, the buyer, and the agent.

 

I’d be happy to speak with you offline to answer any further questions you might have about our process before your bidding period goes live tomorrow. You can reach me directly at [email protected].

 

Thanks for your interest in Auction.com!

Sheldon Lim

Permalink Reply by Bryant Tutas on March 27, 2013 at 2:09am

THE POST AND COMMENTS WERE EDITED TO REMOVE ALL PERSONAL INFO OF THE SELLER. PLEASE KEEP ALL PERSONAL INFO CONFIDENTIAL AS THIS IS A PUBLIC SITE. THANKS

Permalink Reply by Jeanine Thames Glassman on March 27, 2013 at 2:58am

Thank you for removing the post Bryant......I should have just posted the first page to show the commission agreement and I thought about that after the fact.  Would you also please remove the post by Ron Scribner above which elaborates on the personal information of my client?  I would appreciate it.

I appreciate the concern shared by my fellow agents, but when that "caution" becomes scolding, I don't think that is what we are here for. I am surprised anyone would be interested enough to read all the way through this document and have any interest at all in my client.  The important thing is that I was trying to show that a 6% commission is paid in some cases.

The information I am sharing here is about Auction.com and the effect it will have on the short sales we are all working.

Permalink Reply by Bryant Tutas on March 27, 2013 at 3:25am

Hi Jeanine. All the personal info has been edited out. Thanks

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