Hubzu is an online residential marketing platform connecting prospective home buyers with properties in all 50 U.S. states and Washington, DC. Much like eBay and other online auction platforms provide bidding capabilities with cars and other items, Hubzu enables buyers to go online to place bids on homes. In addition, real estate agents can register and submit bids on behalf of their clients. The properties listed are primarily foreclosed or bank-owned homes, but they can also include condominiums and single-family dwellings available from short-sale situations and independent sellers (non-bank owned).
Hubzu breaks down the home buying process in four steps:
- Search a property by city, state, zip code or Property ID. Once you find a property you like, sign up to start the bidding and tracking process.
- Before seeing the property in person, you will have an opportunity to review the property page and see everything from property features to rental reports. However, if the property is occupied or being renovated, the seller may not offer walk-through.
- When you are ready to start bidding, click the “Place Bid” button to go right into the auction. Make sure to periodically check your dashboard, which will keep you in the know if anything changes during the auction cycle.
- If your bid is selected by the seller, you will receive a purchase contract and request for more documents. After the documents are returned with your digital signature, a closing date will be set.
Before you start bidding, make sure you are up to speed with the conditions applied to the specific property you are eyeing. It’s always wise to visit and inspect a property prior to bidding, because auctions usually have no inspection contingency period. Also, set aside some cash for the earnest money deposit in addition to setting a budget for any possible home repairs.
Note that a “Bid Deposit” — basically a hold on your credit card — will be required to follow through with your bid. The hold will then remain in place for the duration of the auction cycle. Remember there is no guarantee the sale will occur, and the seller has the legal right to approve or reject bids, including the highest bid. Auto Bid is an interesting feature that may help you gain the upper hand when bidding on a property. Bidders can stipulate a minimum amount that an auction bid must be raised each time the current highest bid is surpassed. You may also set up a ceiling amount that you don’t want to surpass when bidding.
To learn more about Hubzu, click here.