bidding
process

Know all of your options before the auction begins.

Direct Offer

Direct Offer allows you to make offers directly to sellers on certain bank-owned properties. Just set your price, provide justification and submit your offer to sellers who are actively reviewing and responding to you. Watch this Video for a quick overview.

To get started:

  • Go to Auction.com and log into your account. On the top right corner of the homepage, click on “Buy” and select “REO Bank Owned.” Next, click on “Buying Type” and select “Direct Offer.”
  • You will now see all the Direct Offer properties available nationwide. When you find a property that interests you, click on the photo and go to the property page, where you can begin to conduct your due diligence.
  • When you are ready to make an offer, click on the blue “Make Your Offer” button on the property page and enter your price. The meter on top of the page will show you the probability of your price being accepted by the seller. This probability is based on the seller’s historical acceptance rate of similar properties.
  • Prior to submitting a Direct Offer, you’ll need to have your ID verified. Buyers can only use one ID with one account that is linked to their Bidder Profile. This one-time process is done to ensure a secure and smooth buying experience for buyers.
  • Before submitting your offer, we strongly encourage you to provide justification to help support your offer and provide a clearer picture to the seller. This will allow the seller to consider information such as, the condition of the property or estimated repair costs, when evaluating your offer.
  • When you’re done, click the “submit” button. Your offer will go directly to the seller who will either accept, counter or decline within three business days. You can track your offers within your dashboard. On the rare occasion that the seller does not respond within three business days, you will receive an email stating that your offer has expired. In that case, you may submit another – more competitive offer – or move on to another property. You can also withdraw your offer, although you will need to provide a reason for your decision.
  • If the seller counters your offer, you can accept, decline, or make a counter offer back to the seller. You have one business day to make your decision and reply.

View all available Direct Offer properties.

Online Bidding

Before you bid on a property, make sure you’re prepared. Study the property details page carefully and do your due diligence. You should also prepare your Proof of Funds. After you are satisfied with your research, follow these steps to begin bidding:

  • Log onto your Auction.com account.
  • Go to the property details page. Take note of the auction dates because you will need to place your bid within the online bidding period during the auction.
  • When you register to bid, you’ll need to have your ID verified. Buyers can only use one ID with one account that is linked to their Bidder Profile. This one-time process is done to ensure a secure and smooth buying experience for buyers.
  • You’ll have an opportunity to sign up for helpful “Action Item Text Alerts.”
  • When the auction begins, type in the amount you would like to bid within the bid box and click the “Bid Now” button.
  • You will be required to bid at or above the increments stated on the property details page. The increments, which may change throughout the auction, will be shown when the auction begins.
  • Check in often, especially in the final minutes of the auction. Bids that are placed within the final minutes will trigger an overtime bidding period to allow all interested parties to keep bidding. This extended period gives everyone a chance to place last minute bids.
  • When the auction is over, we’ll send you an email letting you know if you were outbid or if you were the highest bidder. If you are the highest bidder, we will let you know if the seller accepts your bid. Sometimes, the highest bid is still too low for the seller to accept. If the seller accepts your bid, you won the auction!

Proxy Bids

  • Proxy bid is a feature that allows you to place a bid on a bank-owned property before the auction starts. The proxy bid is then automatically placed, so that you don’t have to stand by during the auction.
  • To place a proxy bid before the auction, begin on the Property Details Page (PDP) where you will find a button to submit a proxy bid. After you submit your bid amount, we’ll notify you at the end of the auction if your proxy bid was the highest bid for that property. If you are the highest bidder, the seller will review your bid and if they accept your offer, you will move into closing.

    • Note: all auction bids are confidential.

Counter Bidding

  • Counter Bidding is a common practice used by all major auction houses. Auction.com will counter bid on behalf of the seller in order to move the price closer to the Reserve Price, or minimum price that a seller will accept.
  • When the bidding reaches the Reserve Price, Auction.com will no longer counter bid. Counter bidding is designed to help the buyer and seller reach a price that works for both parties so the auction will be successful. Please note: The exposure of counter bids is not required in every state.

Disclosing the Reserve Price

  • The Reserve Price is disclosed in certain instances. It’s up to the sellers to decide whether to disclose the Reserve Price (or minimum amount that they will accept for a property). The sellers have the option of accepting an offer that is less than the Reserve Price, but once the Reserve Price is met, the sellers should be agreeable to sell the property.
  • When the Reserve Price is disclosed, you can find it on the property details page under the number of beds/baths or under the Current Bid or Starting Bid. You can also search the site to find properties that disclose the Reserve Price.

Make an Offer Now

To create a more efficient experience for our buyers, we have improved Make an Offer Now.

  • Start on the property details page to see if the Make an Offer Now option is available. Not all Sellers accept offers before an auction period.
  • Buyers can submit their offer online and will receive notifications whether their offer was within the Seller’s minimum threshold of consideration online. If the offer does not meet the Seller’s minimum threshold after 4 attempts, Buyers will be directed to register for the upcoming auction.
  • Once an offer has been submitted successfully, it will go through two reviews. First, our internal team will review the offer based on the Seller’s criteria and notify you whether your offer will move forward to the next step in the process, contracting. Once contracting is complete, the offer will be reviewed by the Seller. Once the Seller accepts the offer, Buyers will be notified within 1 business day. On some properties with multiple offers, Buyers with active offers will receive an email with a final chance to submit a final and best offer.
  • If the bid is not accepted, we encourage you to register for the upcoming auction and bid again during that auction. Sellers may be more flexible in considering offers at the end of a competitive auction.