Agent2Agent in Evanston>Question Details

Lydia Deleo, Real Estate Pro in Wilmette, IL

Anyone had experience participating in a hubzu auction and had success?

Asked by Lydia Deleo, Wilmette, IL Mon Aug 11, 2014

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it is a legit site, but you can't assume that everything is right, or correct. Need to be smart about it. I've bought 2 properties, both site unseen, that worked out well. I had a 3rd under contract that was extended 3 times b/c they couldn't get me clear title. they eventually tried to get me to sign a waiver b/c of code violations and i said no. they reposted the property with no further disclosure than the original time. To me that sucks, but it is always buyer beware.
0 votes Thank Flag Link Wed Nov 5, 2014
i've bought 2 properties and they both worked out well
0 votes Thank Flag Link Wed Nov 5, 2014
The last few times my clients made bids, it sold way above the reserve and turned out to be less than the great deal it seemed to be at the start, especially with the huge buyers premium fee they collect from the buyer.
0 votes Thank Flag Link Thu Aug 14, 2014
Bob, it is a bit amusing to me, realizing the total cost of selling via auction exceeds 11%, but buyer and seller think they 'beat the system' and got a deal! Meanwhile both the fees and the selling price are 'No Deal" at all.
Meanwhile, traditional sales cost approximately half that amount and the price goes DOWN not up!
The NEED to beat the system get folks into the most peculiar situations.
Flag Fri Aug 15, 2014
The only experience I had with hubzu was an absolute nightmare. We couldn't get anybody over there to respond to our emails and phone calls. They told us our offer was accepted, then came back and said it wasn't. It was a mess. I'll never (willingly) deal with them again.
0 votes Thank Flag Link Thu Aug 14, 2014
Without a doubt, when engaged in the distressed property marketplace a bit of anarchy is present. Just like working short sales, if you don't do the dance just right, things can easily go bad. The pattern I am seeing is the process seems to work reasonably well for FL and IL agents.
Flag Thu Aug 14, 2014
Yes I have. Hubzu is pretty easy to deal with. You have to navigate with many different emails but they have a set way and they do get back to you.

The bidding is transparent. However, only people with cash or perhaps 203k financing can really do these most of the time. They will not turn on utilities, so inspections are limited and most lenders require people to get all the utilities on.

I only recommend them for buyers on a limited basis because there are no contingencies. If you don't get the mortgage, you lose your earnest money.

Sometimes the homes need a lot of work and sometimes there are hidden issues. You can still do an inspection without utilities but you will not know about your furnace, ac, or plumbing. Can sometimes do an air test to prove pipes are not broken.

Can be a good opportunity but caution is very often required. Also, on any auction site. Read the fine print. These are not traditional avenues to sell and you need to be comfortable with the terms, requirements and deadlines. And make sure you check - sometimes these homes have occupants (former owner) and you will need to get rid of them. Also, make sure you know your lending requirements.
0 votes Thank Flag Link Thu Aug 14, 2014
Listing a property or as Buyer's agent?

I have never listed through Hubzu as I mainly list bank owned for other institutions, other than Ocwen.

As a buyer's agent Hubzu has been a great resource for me. I have closed a very good number of transactions through this auction.

The internet is jammed with complaints about Hubzu, mainly from agents that in my opinion have a little trouble going outside the box.

Read, learn and follow. Be patient as often just like any other REO there are title issues and therefore huge delays on closing.

If you have an investor clientele Hubzu can easily bring millions in sales in the next 12 months.

Good luck and good eye!
0 votes Thank Flag Link Tue Aug 12, 2014
You bet! It is by far the best auction environment.

Go ahead and register yourself and read all the stuff. It's not complicated but it is stuff you REALLY want to know before you engage a buyer.

Understand the money thing, especially that $2,500.

This seems to be the preferred path of many lenders is resolving their short sale situations.
It is a good resource.
0 votes Thank Flag Link Tue Aug 12, 2014
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