Updated October 2026. Auction.com fee and payment rules checked against its own help pages this month.
Auction.com is an online marketplace for foreclosure auctions and bank-owned (REO) homes. You make a free account, research a property, register to bid, and bid online or in person. If you win, you usually pay a buyer’s premium of 5% of the winning bid or $2,500, whichever is greater, on properties that carry one. Many sales are cash only, as-is, and may not allow an interior visit.
Jump to: 🪜 How it works · 💲 Fees and payment · 🏠 Risks · 🤝 Alternatives · ❓ FAQ
Key takeaways
- Two sale types: foreclosure auctions (often paid in full by cashier’s check right after the sale) and bank-owned listings (the seller must still accept your bid).
- Buyer’s premium, where it applies: 5% of the winning bid or $2,500, whichever is greater. A $100,000 win costs $105,000 before closing costs.
- Foreclosure homes are sold as-is, often with no interior access, and the deed usually carries no title warranty.
- Distressed sales were only 2% of US existing-home sales in September 2026 (NAR). Deals exist, but they’re not common.
How does Auction.com work?
Auction.com runs two kinds of sales, and they work very differently. Know which one you’re looking at before you bid.
| Foreclosure auction | Bank-owned (REO) online auction | |
|---|---|---|
| Who’s selling | A trustee or sheriff, for the lender | The bank that already took the home back |
| Minimum price | Lender’s credit bid. If no one beats it, the lender keeps the home. | A reserve price, usually not shown. The seller can accept less. |
| Payment | “Cash only,” often a cashier’s check at or right after the sale | Cash or financing, as the listing allows |
| Inspection | Often no interior access; may be occupied | Sometimes an open house or access window |
| Deed you get | Trustee’s or sheriff’s deed, usually no title warranty | A deed from the bank, closed through a title company |
Step by step
- Create a free account in the website or app and save the homes you like.
- Read the property page, including its due diligence section. It lists the sale type, deposit and funding rules.
- For remote foreclosure bidding, fill out a Foreclosure Purchase Profile. It sets how the deed will be titled.
- Register for the auction. If a bidder’s deposit is required, you pay it at this step.
- Bid. Treat every bid as one that could win, because the seller can accept a bid below reserve.
- If you win, pay and sign on the deadline in the listing, then close.
Local rules can add steps. In North Carolina, for example, anyone can file an “upset bid” for 10 days after a foreclosure sale. Each new bid must be 5% or $750 higher. So winning on the day isn’t always the end.
What does buying on Auction.com cost?
The price you bid isn’t the price you pay. Here’s what to add on top.
- Buyer’s premium. On properties that have one, it’s usually 5% of the winning bid or $2,500, whichever is greater. On a $30,000 bid, the $2,500 minimum applies.
- Closing costs. Title, recording and transfer taxes still apply, as on any purchase.
- Liens and back taxes. Some debts can survive a foreclosure sale, depending on state law.
- Repairs. You’re buying as-is, and you may not see the inside first.
- Eviction, if the home is occupied. That takes time and money.
Auction.com’s glossary defines the total purchase price as the winning bid plus the buyer’s premium, if any. Budget from that number. The Bankrate calculators help you rough out financing, repair and closing figures.
Can you use a mortgage?
For foreclosure auctions, usually not. “Cash only” there means full payment at the sale or shortly after, often by cashier’s check. For bank-owned homes, Auction.com defines cash as funds with no inspection or appraisal condition. Savings, a 401(k), an IRA or a HELOC can count. An FHA or 30-year loan doesn’t count as cash. Some REO listings do accept financing. Check the property page.
If you need a loan, line it up before you bid. Our guide to buying a house with cash covers proof of funds and a way to refinance after a cash purchase. If you’re short on cash, read how to buy a cash-only house without cash.
What are the risks of buying at auction?
The biggest risk is what you can’t see. Auction.com says interior access may not be available before the sale. Price that in. A roof or foundation surprise can erase the discount fast. Here’s why the roof matters so much.
Title is the next risk. A foreclosure deed usually has no warranty on the title. State law decides which liens survive. Order your own title search before you bid if you can, and buy an owner’s title policy when you close. Read what title insurance covers.
Then there’s occupancy. If someone still lives there, you may need to go through a legal eviction. HUD explains how foreclosure works for owners and buyers. Nolo has plain-English guides on state foreclosure and eviction rules.
Last, money owed on the home. Unpaid HOA dues, city fines or back taxes can come with it. The Consumer Financial Protection Bureau explains how these debts and liens can affect a purchase.
What happens if you win but can’t close?
On a bank-owned sale, Auction.com keeps your bid deposit as liquidated damages, and your account can be suspended or restricted from bidding on bank-owned homes. Read the terms before you register. Never bid more than the cash you can actually move on the deadline.
Is Auction.com legit?
Yes. It’s a real marketplace that sells homes for lenders and trustees. That doesn’t make every property a deal. Auction.com counter bids for the seller until bidding nears the reserve or credit bid, so prices don’t fall as low as some people expect. Pull recent nearby sales and compare before you set your top bid.
Sell smarter
List your home on the MLS from $99
A flat fee instead of a percentage, and $0 to Beycome at closing. You stay in control of your sale.
Sell your home →Buy smarter
Get up to 2% back at closing
On homes listed by other agents, Beycome credits you up to 2% of the price at closing (1% kept, $1,499 minimum; not on FSBO homes or homes listed by Beycome sellers).
Buy a home →Our take: auctions suit buyers with cash, time and a repair budget. If you need a loan, want an inspection or plan to move in quickly, you’re usually better off buying a listed home.
What are the alternatives to an auction?
Bank-owned homes often end up on the MLS too, where you can usually tour, inspect and finance. Other routes:
- Homes listed on the MLS, including bank-owned and short sales.
- Homes sold by owner, where you deal with the seller directly.
- Tax lien or tax deed sales. Here’s how buying a tax lien property works.
- Flips of distressed homes. Our tips for flipping a foreclosure cover the math.
Buying a listed home? Beycome’s buyer program charges no upfront fee. When the seller offers buyer-agent compensation, we keep 1% of the price (minimum $1,499) and credit the rest to you. On a $400,000 home with 3% offered, that’s $8,000 back. That 3% is only an example: commissions are not set by law or by NAR rules and are fully negotiable. Sellers choose whether to offer buyer-agent compensation, and since August 17, 2024 it can’t be shown on the MLS. For a strong bid on a listed home, see how to make a competitive offer.
Frequently asked questions
How does Auction.com work?
You create a free account, research a home, register for its auction and bid online or in person. The winner pays the bid plus any buyer’s premium and closes on the deadline in the listing.
What is the buyer’s premium on Auction.com?
On properties that have one, it’s usually 5% of the winning bid or $2,500, whichever is greater. Only the winning bidder pays it.
Do you need cash to buy on Auction.com?
For foreclosure auctions, usually yes, often by cashier’s check. Some bank-owned listings accept financing. The property page says which.
Can I inspect a home before bidding?
Sometimes. Foreclosure homes often have no interior access and may be occupied. Bank-owned homes more often allow a visit.
Is title insurance included?
Not on a foreclosure deed, which usually has no title warranty. Order your own title search and buy an owner’s policy.
Are Auction.com homes always below market value?
No. Reserve prices and counter bids keep many sales near market. Compare recent nearby sales before you bid.
Do I need a realtor to bid on Auction.com?
No, you can bid on your own. An agent can help you check value and title, and Auction.com works with brokers.
Reviewed by Beycome Brokerage Realty LLC, a licensed real estate brokerage. Licenses are listed at beycome.com/faq/how-to/are-you-a-licensed-broker/.
Auction.com’s site blocks automated access, so its rules are quoted from its glossary and FAQ as archived on September 16 and 28, 2026 and read on October 21, 2026. Fees and terms can differ by property; the listing page wins.
Buyer program: no upfront fee; Beycome keeps 1% of the price with a $1,499 minimum and credits the rest. The credit depends on the compensation the seller offers, state rebate rules and lender approval. Not available on homes sold by owner.
Commissions are not set by law or by NAR rules and are fully negotiable. Sellers choose whether to offer any compensation to a buyer’s agent, and how much; since August 17, 2024, those offers can’t be shown on the MLS.
This is general information, not legal advice. Foreclosure rules vary by state.
Sources
- Auction.com, glossary of terms (buyer’s premium, credit bid, upset bid), archived September 28, 2026.
- Auction.com, frequently asked questions (cash only, reserve, interior access), archived September 16, 2026.
- NAR, existing-home sales, September 2026 (distressed sales).
- NAR, what the settlement means for home buyers and sellers.
- Beycome, buyer program, October 2026.
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