Experience with Ten-x.com
Does anybody have any experience buying or selling property on ten-x.com (formerly auction.com). I just participated in a live auction and I have to admit the process seemed sketchy and borderline illegal. 
[{"id": "dgu957s", "text": "Why did it seem sketchy or illegal?", "replies": [{"id": "dgu9tz0", "text": "There is a reserve price on each property and there is a \"minimum bid\" on the site, the min bid is set way below the reserve price (which is unknown to buyers). What I found strange was that the auction timer would get down to 1 second and immediately the next incremental bid would be placed up to the reserve amount. It seemed unlikely there were that many \"real buyers\" that were doing it. To me that was a bit sketchy. As the timer got down to the last minute I got a call from the auction site listing representative and he told me the reserve price, said if I bid using the site immediately (He said as the timer ran down \"in the next 20 seconds\") I would be selected as the buyer and - under their terms and conditions - would be able to purchase the property. It just seemed weird I would get a call from the auction site rep telling me that information at the end of the auction undermining the entire process.\n\nWhat I think is borderline illegal is the 2 hour window that give you after you win an auction to sign their contract and the 24 hour non-refundable deposit of 5% of the auction price before any real due diligence is done. The whole process left a sour taste in my mouth and after reading some other reviews I think my experience is pretty fairway for auction.com/ten-x.com  ", "replies": [{"id": "dguanh2", "text": "You were probably only person bidding. The reserve price is usually what is owed to the bank. The auction company can't sell you the property if they can't pay off the bank. The \"minimum\" bid is to screen buyers for proof of funds. If you take the price they call you with, then you are likely getting the building at the cost of paying off the bank and giving 5% to ten-x. If they are calling you, then you can probably negotiate the 5% fee with ten-x right there as well because they make nothing if you don't bid the reserve. As for due diligence, they expect you to do it prior to auction...this is normal for auction real estate and you are buying as-is. I know it sucks that auctions draw people in with low starting bids but no one is under any obligation to sell unless it is listed as no-reserve. Just how auctions work. As for the bidding at last second, if the auction ends below reserve then there is no sale. Likely a bid from the auction house to keep it alive for another 5 minutes. Let me know if you have any other questions. I have helped clients purchase property through auctions before!", "replies": [{"id": "dguawp1", "text": "Oh we know exactly the amount they owe to the bank. We were interested in the property well before the owners decided to take it to auction. We had done our due diligence prior to this specific auction so we had a good idea of what the reserve price was going to be close to. I decided to let the auction house extended as long as they wanted to, until it came close to the price he called me with, then the auction ended - reserve still in place. I would be surprised if they sold it to a real buyer. ", "replies": [{"id": "dgubbe1", "text": "Probably a good time to go make a 95% offer directly to your property contact then since you know where it ended. If they respond, then you know its still available and probably about to go to the bank. Save the 5% if you can prove you found the building outside of ten-x", "replies": [{"id": "dgubjyw", "text": "I think we should go direct for a bigger discount than that. We had an offer (real, legit, in form of PSA) months ago. They declined - insisting on taking it to auction. The broker knows me/my group already, she knows we didn't want to play ball in the auction house, we showed legitimate interest in it well before. ", "replies": [{"id": "dguoe0s", "text": "I have a property going up for auction soon on Ten-X.  Just know that ten-x more than likely has a \"Tail period\" to their contract with the owner that still allows them to get paid if they make a deal with someone who accessed the auction materials and tries to make a deal after the fact.  Not that it would keep them from making a deal with you, but know that they may not be as motivated to give a discount.", "replies": [{"id": "dgv9804", "text": "Good luck to you sir - I would love if you reported back what it was like listing and working with Ten-X.com on the seller side. I think they are motivated to give us a discount - we had made offers directly to the broker before the auction was even in question. I just received an email this morning from the owner (not the auction, not the broker, the actual property owner) asking if we were still interested and able to meet with him. ", "replies": [], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}, {"id": "dgvu17k", "text": "If they are selling a non performing note, they can, and often do, sell the note for 40 cents on the dollar or less.", "replies": [{"id": "dgvueqy", "text": "Perhaps a better way to phrase it; the reserve price is what the bank will let it go for, not what is owed to the bank. Ten x talks with the bank prior to the auction.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dgulh7t", "text": "I've never been the highest bidder, but for sure sketchy.  The other thing is the PSA is non binding for the seller (at least on the one I saw) ", "replies": [], "depth": 1}, {"id": "dgvtuj0", "text": "I know for a fact, 100% certain, that Ten-x places fake bids on the auction strategically. One of their representatives flat out told my company. Also, one of the special servicers, LNR, has a large financial stake in the Ten-x platforn. ", "replies": [], "depth": 1}, {"id": "dgvu023", "text": "Oh and the deadline clock starts over at 3 mins if there is a last second bid.", "replies": [], "depth": 1}]