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Auction.com Exposed: Shill Bidding, Inflated Reserves & Relisting Scheme

Q: Is Auction.com actual shill bidding?

Yes, technically. They admit in their policy they 'counter bid on behalf of the seller up to reserve.' This is shill bidding. Legitimate auctions don't do this. They claim it's necessary to find 'mutually agreeable price'—but if reserves aren't met, it means they're too high.

Q: Why do properties get relisted so many times?

Because reserves are too high. Banks want retail value, not auction value. Auction sites benefit from relisting (more fees). So same property lists 5-7 times until someone overpays or it sits indefinitely.

Q: Can you actually make money on Auction.com?

Rarely. One commenter bought a property in 2012-2016 during market dip for $35k (ARV $80k, fixed for $5k = good deal). But that was 8+ years ago. Now properties are overpriced and rigged against buyers. Better to: buy from off-market sources or courthouse steps.

Q: What's the difference between Auction.com and courthouse auctions?

Courthouse auctions = more transparent, no shill bidding, actual reserves set by lenders. Auction.com = middleman takes fees, counter bidding, less favorable terms. Courthouse = go in person, inspect courthouse steps in your county.

Q: Should I use Auction.com at all?

Only if: (1) You're comfortable buying sight unseen, (2) You accept you'll pay at/above retail, (3) You have 5k+ for repairs, (4) You hire attorney, (5) You have cash. Better alternatives: off-market deals, wholesale, courthouse steps, local agents specializing in foreclosures.

Updated: January 2026

Auction.

com is legitimate but operates a rigged system. From 127 Reddit comments: (1) Auto-counter bidding = shill bidding (illegal on reputable sites, site admits it 'may counter bid'), (2) Same properties relisted 5-7 times with reserves near retail value, (3) 2014 lawsuit: 'Suit claims the site and the property's loan holder worked together to boost sales price,' (4) Users report bidding against computer, not real people, (5) Properties often overpriced or have undisclosed liens/squatters. Better than nothing for deals but systematically stacked against buyers.

Key Findings

What It Is

Real auction platform for foreclosures

Main Risk

'Counter bidding' is SHILL BIDDING—illegal on reputable sites

Best Action

Research extensively before bidding on any property

The Pattern

→Real auction platform for foreclosures
→Uses 'counter bidding' to bid up to reserve price
→Same properties relisted repeatedly (5+ times)
→Reserves set at or near retail value (defeats auction purpose)
→Auto-increments when you bid (confusing bidding war with computer)
→Undisclosed liens, squatters, title issues common
→Heavy disclosure documents (600+ pages) shift all liability to buyer
→No pre-purchase inspections possible (sight unseen)
→Occupied properties with tenant disputes not disclosed

Red Flags

Warning: 'Counter bidding' is SHILL BIDDING—illegal on reputable sites
Warning: Site admits in policy they bid on behalf of sellers up to reserve
Warning: Properties relisted multiple times with reserves unchanged
Warning: Sites like Hubzu (same company) have identical problems
Warning: Properties sold at retail or ABOVE with hidden issues
Warning: Squatters/tenants in properties not always disclosed upfront
Warning: Automated bidding raises increments ($25k jumps reported)
Warning: Properties have undisclosed liens or HOA debts
Warning: Buyers pressured to close in hours with 600+ page docs
Warning: Lawsuits filed (2014): alleged shill bidding scheme
Warning: Agents show up at courthouse to gather bidder info
Warning: Same properties sit for months/years in different listings

What To Do

1Research extensively before bidding on any property
2Check county records for liens, HOA dues, tax debt upfront
3Get professional inspection BEFORE bidding (if possible)
4Understand 'counter bidding'—you're bidding against computer to reserve
5Set maximum bid you'll pay and STICK to it
6Factor in: repair costs, holding costs, lawyer fees (easily $10k+)
7Use 'Make an Offer' for lower-priced properties (<$50k) instead
8Assume interior is 'gutted to studs' in valuation
9Hire real estate attorney familiar with foreclosures
10Verify occupancy and tenant/squatter status independently

What NOT To Do

✕Don't bid expecting 'deal' prices—you won't get them
✕Don't ignore counter bidding—you're fighting computer, not people
✕Don't assume low opening bid = good opportunity
✕Don't ignore reserve requirement (reserve usually = retail price)
✕Don't buy sight unseen without thorough research
✕Don't close within hours of winning—take time to investigate
✕Don't assume disclosed documents cover all liability
✕Don't expect negotiation or protection—as-is sales
✕Don't bid on occupied properties (squatter/tenant issues)
✕Don't trust 'projected resale value' (20%+ inflated)

Copy-Paste Script

Researched Auction.com before bidding. Found: shill bidding (illegal), properties relisted 5x times, 2014 lawsuit for fraud. Decided courthouse steps better than Auction.com.

FAQ

Is Auction.com actual shill bidding?

Yes, technically. They admit in their policy they 'counter bid on behalf of the seller up to reserve.' This is shill bidding. Legitimate auctions don't do this. They claim it's necessary to find 'mutually agreeable price'—but if reserves aren't met, it means they're too high.

Why do properties get relisted so many times?

Because reserves are too high. Banks want retail value, not auction value. Auction sites benefit from relisting (more fees). So same property lists 5-7 times until someone overpays or it sits indefinitely.

Can you actually make money on Auction.com?

Rarely. One commenter bought a property in 2012-2016 during market dip for $35k (ARV $80k, fixed for $5k = good deal). But that was 8+ years ago. Now properties are overpriced and rigged against buyers. Better to: buy from off-market sources or courthouse steps.

What's the difference between Auction.com and courthouse auctions?

Courthouse auctions = more transparent, no shill bidding, actual reserves set by lenders. Auction.com = middleman takes fees, counter bidding, less favorable terms. Courthouse = go in person, inspect courthouse steps in your county.

Should I use Auction.com at all?