Hubzu Review: Are Hubzu Real Estate Auctions Worth It?
Oct 09, 2025
- What: Hubzu is an online real estate auction platform owned by Altisource. It lists foreclosures, REOs, and short-sale properties nationwide. Auctions typically run in 7-day cycles (up to four cycles), and buyers pay a premium of about $2,500 or 5%.
- Why: For seasoned investors, Hubzu offers access to more than 3,000 properties and a marketplace with millions of registered buyers. Features like auto-bid and backup offers make bidding easier, but high fees and mixed customer reviews mean you need to tread carefully and do your homework.
- How: Maximize Hubzu by combining it with other deal-finding strategies. Search with targeted terms like “we buy houses [city]” or “sell my house fast [city],” attend REIA meetings, join social media groups, request referrals, check public records, and pay attention to investor marketing signals. Always verify property details, understand the fee structure, and build strong relationships to get the most out of Hubzu auctions.
Online real estate auctions have become one of the fastest-growing ways for investors to find off-market deals. Among the biggest platforms out there is Hubzu, which gives buyers a chance to bid on distressed and bank-owned properties that often sell below market value. But not every user walks away happy — mixed Hubzu reviews have sparked plenty of debate about transparency, value, and whether the platform really delivers on its promises.
In this Hubzu review, we’ll break down what the site is, how it works, what it costs, and whether it’s actually worth using.
- Overview & How Hubzu Works
- Features & Tools
- Fees & Pricing
- Pros & Cons: Is Hubzu Worth It?
- User Reviews & Ratings
- Competitors & Alternatives
- Tips for Buyers & Sellers
- Hubzu Review: FAQs
- Final Thoughts on Hubzu
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Overview & How Hubzu Works
Before we get into Hubzu’s features, fees, and user experience, it helps to understand where the platform came from and how it actually works. In this section, we’ll cover the basics: who owns Hubzu, how the auction process operates for both sellers and buyers, and what types of properties you’ll find listed. By getting a clear picture of Hubzu’s background, structure, and availability, you’ll be able to decide if this online real estate auction site fits your investing goals.
Background & Company Info
Hubzu has established itself as one of the early leaders in online real estate auctions. Since Altisource acquired the platform in 2012, it’s grown into a go-to marketplace for buying and selling distressed properties. With its focus on making foreclosure and REO listings more accessible to everyday investors, Hubzu has built a space where deals can happen quickly and transparently in a fully digital environment.
To date, Hubzu has facilitated the sale of more than 265,000 properties, generating a combined transaction value of nearly $29.9 billion. The site isn’t limited to a few states either—it covers all 50 states, the District of Columbia, and Puerto Rico, with a current inventory of over 3,000 listings at any given time. Its mission is to streamline the auction process for both institutional sellers and individual buyers while providing access to properties that might otherwise slip under the radar.
- Year Founded: 2012
- Ownership: Altisource
- Inventory: 3,000+ active listings
- Coverage: All 50 states, DC, and Puerto Rico
- Property Focus: Foreclosures, REOs, short sales, and distressed homes
How Hubzu Works
At first glance, Hubzu looks like any other listing site. But behind the scenes, it operates with very specific rules for sellers and buyers. Understanding these steps is essential before you place a bid or pay a fee. The process is designed to create fairness and predictability, though it also comes with unique requirements that new users should be aware of.
Sellers
Sellers on Hubzu usually come in through a listing agent who handles the auction details. To get started, the seller pays a Signature Homes program fee, which is refundable if the home doesn’t sell. From there, the seller chooses an auction cycle—14, 21, or 28 days—with the option to run up to four cycles for better exposure. Once a winning bidder is secured, the seller finalizes the deal through standard closing procedures.
- Register through a listing agent who manages the auction.
- Pay a program fee to list the property.
- Select an auction cycle length: 14, 21, or 28 days.
- Run up to four auction cycles if needed for added visibility.
- Accept a winning bid and finalize closing with the buyer.
Buyers
Buyers have their own path to follow. After creating a free Hubzu account, they can filter searches by property type, location, or price range. Before bidding, buyers must show proof of funds or lender pre-approval. Auctions typically run for seven days, with tools like auto-bid helping participants stay competitive. If the reserve price is met, the top bidder signs the contract within 48 hours and provides an earnest money deposit to secure the purchase.
- Create a free Hubzu account and set your search filters.
- Provide proof of funds or mortgage pre-approval.
- Bid during the 7-day auction cycle, using auto-bid if needed.
- Meet the reserve price to secure the winning position.
- Sign the purchase contract within 48 hours and deposit earnest money.
| Step | Seller Actions | Buyer Actions |
|---|---|---|
| 1 | Register via listing agent | Create Hubzu account |
| 2 | Pay fees | Provide proof of funds/pre-approval |
| 3 | Select 14/21/28-day cycle | Bid during auction cycle |
| 4 | Run up to 4 cycles if needed | Meet reserve price to win |
| 5 | Finalize with winning bidder | Sign contract in 48 hours & deposit earnest money |
Property Types & Availability
One of Hubzu’s strengths is its range of property types. Unlike traditional auction sites that only deal with foreclosures, Hubzu’s listings include everything from condos and townhomes to mobile homes and land parcels. The platform is designed to appeal to a broad audience of investors—from those looking for rental-ready single-family homes to those seeking riskier fixer-uppers with bigger upside potential.
Categories include traditional sales, bank-owned REOs, foreclosures, short sales, and properties needing substantial work. While many homes sell for 15–20% below fair market value, the actual discount depends heavily on property condition, location, and the intensity of bidding competition.
- Studios and condos
- Single-family homes
- Multi-family properties
- Townhomes
- Mixed-use properties
- Mobile homes
- Land parcels
- Fixer-uppers and distressed homes
| Property Type | Typical Discount Range | Risk Level |
|---|---|---|
| Foreclosures | 15–20% below FMV | High (title/condition issues) |
| REOs (Bank-Owned) | 10–15% below FMV | Medium |
| Short Sales | 5–10% below FMV | Medium (lender approval delays) |
| Fixer-Uppers | Varies | High (rehab costs) |
Features & Tools
Hubzu sets itself apart from other online auction sites by offering a range of features designed to make property searches smoother, bidding fairer, and transactions more reliable. From powerful filters to auto-bid tools and backup offer options, Hubzu has built a toolkit for both new and experienced investors. Let’s break down the main features one by one.
Search & Filtering Tools
Hubzu’s site map and filtering system give buyers the ability to narrow down properties based on the criteria that matter most. Whether you’re targeting foreclosures in a specific city or want to filter by auction status, Hubzu makes it simple to customize your search. The platform also offers educational resources, including a comprehensive FAQ and “How Hubzu Works” pages that explain the auction process step by step.
| Filter | What It Does |
|---|---|
| Location | Search by state, city, or ZIP code |
| Property Type | Choose single-family homes, condos, townhomes, land, or multi-family properties |
| Asset Type | Filter by foreclosures, REOs, short sales, or traditional listings |
| Auction Status | See properties currently up for auction or upcoming |
| Price Range | Set minimum and maximum budget limits |
Auto-Bid & Anti-Sniping Features
One of Hubzu’s standout tools is the Auto-Bid system. Instead of constantly monitoring an auction, buyers can set a maximum bid and let the platform automatically raise their bid in small increments until that limit is reached. This creates a hands-off experience while keeping you competitive.
To make bidding fair, Hubzu also uses an anti-sniping mechanism. If someone places a bid in the final moments of an auction, the platform automatically extends the deadline by 15 minutes. This prevents last-second “snipes” and gives all buyers a chance to respond.
- Auto-Bid: Set your max bid → Hubzu increases bids automatically in increments until your cap is reached.
- Anti-Sniping: Any bid made in the final moments adds 15 minutes to the auction clock.
Backup Offer & Buyer Agent Support
Hubzu also includes features that provide more flexibility for both sellers and buyers. Through the backup offer system, sellers aren’t forced to start over if the winning bidder falls through—they can quickly move to the next best qualified offer. This increases deal certainty and reduces wasted time.
For buyers, Hubzu allows licensed buyer agents to register on the platform and earn commissions. This is especially useful for less experienced investors who may want professional guidance when navigating online auctions.
- Backup Offers: Sellers can review all offers, not just the top bid, and move to a secondary buyer if needed.
- Buyer Agent Support: Agents can represent buyers on Hubzu and earn commission, making the process smoother for first-timers.
Platform Strengths & Weaknesses
Every platform has its strong points and drawbacks, and Hubzu is no exception. Investors value its wide property selection, transparent bidding process, and tools like Auto-Bid. On the flip side, many users complain about sparse property photos, limited listing details, and occasional customer service issues. Knowing both sides helps you set realistic expectations when using Hubzu.
| Feature | Strengths | Weaknesses |
|---|---|---|
| Property Selection | Diverse listings across the U.S., including foreclosures, REOs, and short sales | Heavy reliance on distressed inventory |
| Auction Tools | Auto-Bid, anti-sniping, backup offers | Limited ability to customize purchase agreements |
| Transparency | Open bidding process visible to all users | Sparse photos and minimal property details |
| Support | Account managers and buyer agent options | Customer service complaints and delays |
Fees & Pricing
One of the biggest factors to consider before using Hubzu is the fee structure. While the platform advertises itself as simple and transparent, both sellers and buyers face specific costs that can impact the bottom line. Let’s break down exactly what you’ll pay and how Hubzu compares to other real estate auction platforms.
Hubzu Fees for Sellers
Sellers won’t see a long list of fees from Hubzu, but that doesn’t mean the process is cost-free. Hubzu requires every seller to work with a licensed listing agent, and there’s a mandatory program fee. However, sellers are still responsible for traditional real estate agent commissions, which usually run 5–6% of the sales price.
- Program Fee
- Listing Agent Commission: Typically 5–6% of sale price
Hubzu Fees for Buyers
For buyers, Hubzu’s costs can add up quickly. On top of the winning bid, expect a buyer’s premium, deposits, and sometimes technology fees depending on the property. Buyers are also required to put down an earnest money deposit once a contract is signed. These fees make it critical to budget beyond just the purchase price.
| Fee Type | Amount/Percentage | When Charged | Notes |
|---|---|---|---|
| Buyer’s Premium | Typically 5% of winning bid | At closing | Non-refundable, increases total cost |
| Bid Deposit | Varies by property | Before bidding | Refundable if you don’t win |
| Technology Fee | Property-dependent | At closing | Check listing details for exact amount |
| Earnest Money Deposit | ~3% of purchase price | Within 48 hours of contract | Refundable if contract contingencies apply |
Comparison: Hubzu vs Other Auction Platforms
Hubzu isn’t the only player in the real estate auction space. Other platforms like Auction.com, RealtyBid, ServiceLink Auction, and Xome also compete for buyers and sellers. Each platform has its own fee structure, property mix, and customer experience. While some competitors may offer lower premiums or larger inventories, they often come with their own drawbacks, such as inconsistent property details or reserve price manipulation. Comparing them side by side helps highlight where Hubzu stands.
| Platform | Property Types | Fees | Customer Reviews/Traffic |
|---|---|---|---|
| Hubzu | Foreclosures, REOs, short sales, distressed homes | Buyer premium (~5%), seller $995 fee + agent commission | Mixed reviews, moderate traffic |
| Auction.com | Foreclosures, REOs, short sales, commercial properties | Buyer premium (varies), seller fees vary | High traffic, mixed reviews |
| RealtyBid | Residential and investment properties | Buyer premium (varies), no upfront seller fee | Moderate traffic, generally positive reviews |
| ServiceLink Auction | Foreclosures, bank-owned, luxury properties | Buyer premium (varies), seller fees depend on property | Smaller reach, mixed reviews |
| Xome | Foreclosures, REOs, traditional listings | Buyer premium (~5%), agent commissions apply | Mixed reviews, decent traffic |
Pros & Cons: Is Hubzu Worth It?
Every investor wants to know whether a platform like Hubzu is really worth their time and money. The truth is, Hubzu comes with both exciting opportunities and serious caveats. Let’s take a balanced look at what makes the platform appealing and where it falls short.
Benefits of Using Hubzu
Hubzu’s biggest draw is its ability to connect buyers with distressed properties nationwide. For seasoned investors, that means a shot at deals often priced well below market value. On top of that, automated tools like auto-bid and backup offers make the process more efficient. Here are the main perks:
- Access to nationwide inventory of foreclosures, REOs, and short sales
- Large pool of listings (3,000+) and millions of registered buyers
- Auto-bid feature and anti-sniping rules that keep bidding fair
- Backup offer system that reduces wasted time if a deal falls through
- Lower buyer premiums on select properties
- Potential to purchase homes 15–20% below market value
- Legitimate platform with billions of dollars in sales completed
For investors seeking discounted deals and willing to compete in an auction environment, Hubzu checks many boxes.
Drawbacks & Risks
Despite its advantages, Hubzu isn’t a perfect solution. Buyers and sellers frequently report frustrations ranging from high fees to a lack of property detail. The platform’s reliance on multiple auction cycles and reserve price rules can also make the process unpredictable. Here are the main drawbacks:
- High buyer’s premium (5%) plus additional fees
- Mandatory listing agent requirement for sellers
- Sparse property photos and limited listing information
- Concerns about reserve price transparency and auction fairness
- Customer service complaints and delays in responses
- Properties often cycle through auctions multiple times before selling
- Challenging process for inexperienced buyers
Is Hubzu Worth It? (Analysis)
So, is Hubzu worth it? The answer depends on who you are as a buyer or seller. If you’re an experienced investor who understands distressed properties and is comfortable with the auction process, Hubzu can be a goldmine of discounted opportunities. The tradeoff is navigating higher fees and the patience required for multiple auction cycles.
On the other hand, if you’re a first-time homebuyer or a seller looking for speed and certainty, Hubzu may not be the best fit. Alternatives such as cash buyer companies, low-commission agents, or even more user-friendly auction platforms could be a better match.
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User Reviews & Ratings
One of the best ways to evaluate Hubzu is to look at what real customers say. The platform has been reviewed across several major sites, and the feedback is mixed. Some investors love the access to discounted properties, while others complain about fees and customer service. Here’s a snapshot of Hubzu’s ratings across the web.
Rating Summary Table
Hubzu’s ratings vary widely depending on the review platform. The average overall score lands around 4/5, but some sites show much lower scores due to recurring complaints. The table below summarizes the ratings and key takeaways:
| Review Site | Rating | Number of Reviews | Key Takeaways |
|---|---|---|---|
| BBB | 2.4 / 5 | 150+ | Frequent complaints about transparency and support |
| Reviews.io | 4.2 / 5 | 500+ | Positive experiences with finding properties |
| BestCompany | 2.9 / 5 | 100+ | Split opinions—49% of reviews are 1-star |
| Overall Average | ~4 / 5 | 700+ total | Mixed but leaning positive; consistency is an issue |
What Customers Love
Despite some negative press, many buyers and sellers highlight what Hubzu does well. The most common praise centers around property access and ease of use. Here are the positive themes that stand out:
- Reliable source for foreclosed and distressed properties
- Backup offer system that helps sellers choose the best fit, not just the top bid
- Smooth purchase process for some investors who had no issues closing
- Convenient auto-bid tool that saves time
- Support for buyer agents, which helps less experienced users
Common Complaints
On the flip side, Hubzu also receives a steady stream of criticism. Many reviewers cite frustrations with fees, lack of property information, and concerns over auction fairness. These are the most common issues:
- Unfair bidding—some allege offers were accepted after auctions ended
- Lack of transparency around reserve prices
- Sparse photos and incomplete property details on listings
- Poor customer service with slow response times
- High 5% buyer premium and additional technology fees
- Inability to change purchase agreements once accepted
- Nearly half of BestCompany reviewers gave Hubzu 1 star
Competitors & Alternatives
Hubzu isn’t the only real estate auction site on the market. Several other platforms compete for buyers and sellers, each with unique property types, fee structures, and user experiences. Understanding these alternatives helps you see where Hubzu fits—and whether another option might be better for your needs.
Auction Platform Comparisons
When comparing Hubzu to other auction sites like Auction.com, RealtyBid, ServiceLink Auction, and Xome, the differences usually come down to fees, property mix, and overall traffic. While Hubzu is known for its distressed inventory, competitors may offer faster cycles, larger selection, or different buyer costs. Here’s a quick breakdown:
| Platform | Property Types | Buyer Fees | Pros | Cons |
|---|---|---|---|---|
| Hubzu | Foreclosures, REOs, short sales, distressed properties | ~5% buyer premium, $995 seller program fee | Backup offers, auto-bid, nationwide coverage | High fees, limited property detail, customer service complaints |
| Auction.com | Foreclosures, REOs, short sales, commercial | Buyer premium varies | Massive inventory, high web traffic | Reserve price manipulation concerns |
| RealtyBid | Residential, investment homes | 1% transaction fee | Low fee structure, straightforward process | Smaller selection than competitors |
| ServiceLink Auction | Bank-owned, luxury, foreclosures | Buyer premium varies | 3-day auction cycles, negotiation options | Lower traffic, less exposure |
| Xome | Foreclosures, REOs, traditional listings | ~5% buyer premium | High web traffic, larger selection | Reserve price transparency issues |
Alternatives for Sellers & Buyers
Not every homeowner or investor wants to deal with auctions. If speed or simplicity is your top priority, there are other ways to sell or buy properties that might be more effective than Hubzu. Here are some common alternatives:
- Cash Buyer Companies: Fast, guaranteed offers and quick closings, but usually at a discount below market value.
- iBuyers: Provide near-instant offers and digital convenience, though service fees can be steep and availability is limited by market.
- Low-Commission Agents: Traditional listing route with reduced commission costs, often yielding higher sale prices than auctions or cash offers, but taking more time to close.
Tips for Buyers & Sellers
Hubzu can open the door to discounted properties and wide exposure for sellers, but only if you approach it with the right strategy. Preparation, smart bidding, and strong communication make all the difference. Here are some proven tips to help you navigate the platform with confidence.
Due Diligence & Preparation
Success on Hubzu starts long before the bidding begins. Buyers need to dig deep into property details and understand the fine print, while sellers should present their homes in the best light possible. Skipping these steps is the fastest way to lose money or face surprises at closing.
- Buyers: Verify title status and liens before bidding.
- Buyers: Run comps and calculate repair estimates.
- Buyers: Understand the reserve price—don’t overextend.
- Buyers: Read the purchase agreement carefully (Hubzu doesn’t allow custom clauses).
- Sellers: Prepare clear property photos to boost buyer confidence.
- Sellers: Provide upfront disclosures to attract serious bids.
Bidding & Negotiation Strategies
Bidding wars can be exciting, but they also test your discipline. Using Hubzu’s tools wisely and staying calm during extensions will help you avoid overpaying and regretting the deal later. Here are the most effective strategies:
- Set a maximum budget and use Auto-Bid to stick to it.
- Always factor in fees (buyer’s premium, deposits, tech fees) when calculating your max offer.
- Watch for last-minute bid extensions—don’t get caught off guard by anti-sniping rules.
- Leverage the backup offer system to stay in play even if you’re not the top bidder.
- Visit the property whenever possible to assess condition firsthand.
- Consider working with a buyer’s agent to navigate paperwork and avoid mistakes.
Building Relationships with Hubzu Support & Agents
Hubzu isn’t just about technology—it’s also about relationships. Buyers and sellers who build rapport with Hubzu support staff and local agents often find the process smoother and faster. Agents can help interpret contracts, provide property access, and ensure your interests are protected.
- Communicate clearly with Hubzu account managers about your goals.
- Provide proof of funds or pre-approval letters to build credibility.
- Respond quickly to emails or calls during the auction process.
- Give feedback to agents and Hubzu staff to strengthen the relationship.
Hubzu Review: FAQs
We’ve covered a lot about Hubzu, but you might still have quick questions. Below are the most common FAQs investors and sellers ask, with concise answers designed to help you cut through the noise and get clarity fast.
What is Hubzu and how does it work?
Hubzu is an online real estate auction platform specializing in foreclosures, REOs, and short sales. Sellers list properties through licensed agents, pay a refundable program fee, and run auctions in 7-day cycles. Buyers register, place bids (often with auto-bid tools), and must sign contracts and pay deposits if they win.
Is Hubzu legit?
Yes, Hubzu is a legitimate platform founded in 2009 and owned by Altisource. It has sold over 265,000 properties worth nearly $30 billion nationwide. However, legitimacy doesn’t guarantee a great deal—buyers still need to run comps, verify property details, and understand fees before bidding.
How much are Hubzu fees?
Buyers typically pay a 5% buyer’s premium on the winning bid, plus a bid deposit, technology fee (varies by property), and an earnest money deposit (around 3%). Sellers must work with a listing agent and pay a $995 program fee, which is refundable if the property sells on Hubzu.
What types of properties are on Hubzu?
Hubzu lists a mix of distressed and traditional properties, including foreclosures, REOs, short sales, fixer-uppers, condos, townhomes, land, and multi-family units. Most inventory leans heavily toward foreclosures and bank-owned homes.
Are Hubzu auctions worth it?
Hubzu can be worthwhile for seasoned investors seeking discounted, distressed properties and willing to manage extra fees and auction cycles. For first-time buyers or sellers who want certainty and speed, alternatives like cash buyers or low-commission agents may be a better fit.
Final Thoughts on Hubzu
Hubzu is an online real estate auction platform that connects buyers and sellers with distressed properties across the country. With features like automated bidding, backup offers, and nationwide access to foreclosures and REOs, it has become a major player in the auction space. At the same time, its fee structure, mandatory agent requirements, and mixed reviews mean it’s not for everyone.
The benefits are clear: potential discounts of 15–20% off market value, access to thousands of listings, and tools that streamline the bidding process. But so are the risks—higher fees, limited property details, and customer service complaints. That’s why success on Hubzu requires careful due diligence, disciplined bidding, and strong relationships with agents and platform support.
Ultimately, Hubzu can be a powerful tool for experienced investors who understand distressed properties and are willing to navigate the tradeoffs. For those new to real estate, or for sellers looking for speed and certainty, alternatives like cash buyers or low-commission agents may be a better fit.
If you’re serious about doing your first real estate deal, don’t waste time guessing what works. Our FREE Training walks you through how to consistently find deals, flip houses, and build passive income—without expensive marketing or trial and error.
This FREE Training gives you the same system our students use to start fast and scale smart. Watch it today—so you can stop wondering and start closing.
*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.
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