Bank-Owned Online Auction Bidding Process

Understand the Online auction bidding process so you're prepared on the day of the event.

  • 1 Create a Xome Auctions Account

    Once you’ve created a free account on, you’ll have access to a personalized dashboard to keep track of your saved properties and previous bidding activity, helpful information, and more!

  • 2 Search Auction Properties

    Xome provides access to one of the largest and most exclusive online collections of residential and commercial auction properties across the nation, giving you a single location to search for and find your next investment.

  • 3 Register for an Auction Event

    You can register for an event directly from each property’s page, or you can use the Auction Calendar to view all upcoming events.

  • 4 Place a Bid

    As soon as an event is live, you can start placing bids by entering an amount and clicking on the “Bid Now” button on the property’s page. Keep track of properties that you’re interested in by saving them to your favorites and signing up to receive alerts.

  • 5 Going Once, Going Twice, Sold!

    Congratulations! You’ve bid like a pro and won the auction. Please make sure to fill out the checkout form as quickly as possible to have your offer submitted to the seller.

  • 6 Sign the Dotted Line

    Once the seller accepts your bid, you’ll receive an email from Xome eSign™ to electronically sign the contract within 24-48 hours. When the contract is signed, you’ll receive detailed instructions about how to send your earnest money deposit.

  • 7 Seal the Deal

    With the contract signed, your next step is closing. The Closing Coordinator will inform all the appropriate parties of next steps such as title & escrow.

  • 8 It’s yours!

    Hooray! You’ve completed the purchase transaction. Thank you for using Xome and we hope to see you again.

What are the next steps after winning an auction?

You will receive an email verifying that you are the winning bidder and detailing next steps, along with a notification in your user dashboard. The checkout form must be completed within 24 hours.

How can I register for an auction event?

The first step in registering for an event is viewing our Auction Calendar.

Click on the "Auctions" tab from the navigation bar on the home page.

Select "Auction Calendar"

Enter the auction type and event start date.

A list of auctions will populate.

Do I need to register to bid in an auction event?

Yes, you can register for an event directly from each property’s page, or you can use the Auction Calendar to view all upcoming events

Are there separate account types for buyers and agents?

There are not separate account types of buyers and agents. The only difference in the process is if an agent is filling out the checkout form on behalf of their client the agent will include their information in the agent section.

Why do you require a credit card to participate in an online auction event?

There are no fees to bid in Xome Auction events, however, we may place a $1,000 hold on your credit card as part of the event registration process to ensure bids are placed by serious buyers. If you are not the winning bidder, the hold will be removed within 24 hours after the event ends. If you are the winning bidder, the hold will be removed within 24 hours of the escrow/closing company’s receipt of your earnest money deposit.

Will my credit card be charged if I no longer wish to purchase the property?

Yes, your credit card will be charged $1,000 if you are the winning bidder and you decide to not move forward with the transaction.

How do I perform due diligence on bank-owned properties?

Contact the Titles and Records department in the county where the property is located. Generally, this information can be found at the County Courthouse.

What is the difference between placing a bid, a pre-auction offer and the Own It Now option?

Placing a bid: Bids can be placed while an auction event is open by inputting your bid amount on the individual property’s page and hitting the Bid Now button.

Pre-auction offers: Pre-auction offers allow buyers to submit an offer prior to the event opening for active bidding. Pre-auction offers are available at a seller’s discretion, and will be listed on the individual property’s page.

Own It Now: With our Own It Now option you can end bidding immediately, or purchase a property before the auction begins by confirming your offer in the amount of the seller's approved Own It Now price. Typically, these types of offers have a faster turnaround since the amount has already been approved by the seller. The Own It Now option is offered at a seller’s discretion, and will be listed on the individual property’s page if available.

How do I know if a pre-auction offer is accepted or rejected?

You will receive an email notification if your pre-auction offer is accepted or rejected.

What does "sold subject to seller approval" mean?

This means that the seller must review and accept the offer before the transaction proceeds. Even if you are the winning bidder the seller may choose to not accept the offer.

When can I start placing bids on properties that I’m interested in?

You can start bidding on properties as soon as the auction begins. Many sellers offer the ability to place pre-auction offers before the event begins. Check out properties currently accepting pre-auction offers to get first dibs on great investments!

What does "Reserve Met" and "Reserve Not Met" mean?

Reserve Met: The 'Reserve' price is generally the lowest price that the seller will take on a property. If the property is set as "Subject to Seller Approval" then, it is still up to seller’s discretion to accept or reject the offer.

Reserve Not Met: The price is still below what the seller will accept. Often, the seller may still accept a counter offer.

How can I find the reserve price for a property and what if the reserve is not met?

The Reserve price is not disclosed on all properties. If no Reserve price is listed on the property’s page, then per the seller, Xome is not allowed to disclose that information. If the reserve has not been met, the Auction Asset Manager may or may not review the offer with the Seller. It depends on the seller. Depending on the seller, they may or may not want to consider an offer that doesn’t meet reserve. Often, a seller might entertain an offer that isn’t shy from meeting reserve.

Is there an indicator to let me know if I’m close to the Reserve price?

If your bid hits reserve and is not being sold subject to seller approval, you will see ‘Reserve Met’ on the property display page of the asset you are bidding on.

Do I need to provide Proof of Funds or a Pre-Qualification letter?

If you’re the winning bidder then you’ll be prompted to fill out a Checkout form. You can upload and submit your Proof of Funds and/or Pre-Qualification documents to the form.

Which properties can be financed and which are cash only?

The seller determines if the property will be financeable or cash only. Each individual property’s detail page will include information on whether the property is financeable or cash only.

Is it possible to win an auction but not have the transaction move forward?

Yes, it is possible to win the auction but not have the offer accepted. If the reserve price isn’t met or the property is being sold subject to seller approval, then the seller has the right to accept, counter, or reject the winning bid that is submitted as the offer.

Can the auctioneer bid?

Yes, the auctioneer is allowed to bid on behalf of the seller.

I missed out on the auction, can I make a back-up offer on a property after the auction has ended?

No. Post-auction offers are not accepted.

Can I lower or remove my bid?

You cannot lower a bid that’s been placed but you can remove your bid prior to the end of auction by contacting Customer Service at 844-400-9663 or

Can I bid a high amount and have the site auto-bid for me?

No, we do not offer proxy bidding. You can manually bid on an auction, and if you’re highest and best you’ll be notified.

Am I able to see who is bidding against me?

No, you won’t be able to see who the other bidders are and how much they are bidding.

How long does it take for the seller to review my offer after winning an auction?

The seller has up to 15 business days to review an offer. The average turnaround time is typically 3-5 business days.

  • When is payment due and how soon after I am notified that I am the winning bidder?

  •       Once you’ve executed your purchase contract, the Earnest Money Deposit (EMD) must be submitted within 48 hours.

  • Can I inspect a property after I am notified that I am the winning bidder?

  •       If the property is vacant and has a listing agent, you may contact the listing agent to schedule an inspection, however, all properties are sold as is, where is.

    Can I purchase a property in the name of my company?

    Yes, you will need to provide the appropriate documentation such as the LLC documents with authorized signer information. The LLC documents can be uploaded with Proof of Funds in the Checkout form provided once the auction is over and you’re the winning bidder.

    What happens if I change my mind and back out after I win an auction, will I lose my money?

    If you are the winning bidder and decide to not move forward with the transaction, Xome can charge your credit card the $1,000 hold collected as part of the event registration process.

    How much are closing costs?

    Closing costs will vary, but on average closing costs are typically 3% of the purchase price.

    How long is a standard closing? Where would I wire the funds?

    A standard closing for a cash deal is 15 business days and for financed deals are 30 business days. All funds are wired to the sellers selected Title company.

    What kind of title will I receive?

    At the seller’s discretion, most properties (but not all) are conveyed with a Special Warranty Deed, however, we recommend that you perform your due diligence prior to bidding in an auction event.

    What is the difference between a Quitclaim, Special Warranty Deed (SWD), and General Warranty Deed?

    A Quitclaim Deed, also known as a non-warranty deed, is used to transfer property interest from one person (grantor) to another (grantee).

    A Special Warranty Deed (SWD) does not protect against any mistakes in a free-and-clear title that may exist before the seller’s ownership.

    A General Warranty Deed covers the property’s entire history. It guarantees the property is free and clear from defects or encumbrances, no matter when they happened or under whose ownership.

    Do I save money as a buyer if I don’t have an agent?

    No, the agent’s commission is paid by the seller.

    Can I add my agent’s information during the event registration process?

    You’ll be able to add your agent’s information to the checkout form if you’re the winning bidder.

    How do I bid on a property?

    Once you are registered for an Auction Event, placing a bid is a simple click. Each Property will have an opening price and bid increment. Each Bidder receives a confirmation once a bid is placed, and if you are the Highest Bidder you will be notified via email at the conclusion of the Auction.

    What types of properties are listed on Xome?

    Xome offers MLS listed residential Properties, as well as vacant and occupied real estate owned (REO), Short Sale, redemption and trustee sale Properties. Please sign up to receive our emails announcing weekly Auctions.

    What is real estate owned (REO) auction type?

    A bank owned Auction is specifically structured for REO properties. These assets are normally sold by institutional sellers.

    What is "Own It Now"?

    Own it Now allows a buyer to purchase Property at the Seller’s approved price immediately rather than waiting for the Property to go to Auction. Once a buyer chooses to "Own it Now" (OIN), all other Auction and offering activities are suspended and no other offers can be made. These types of offers typically have a faster turn-around-time as they are already Seller approved.

    What is "Reserve Price"?

    A Reserve Price is the minimum price the Seller/Servicer is willing to accept for the Property in an Auction. The Reserve Price is set by the Seller/Servicer and is not shown to buyers, however, the Property Details Page does show whether or not the Reserve Price has been met. Bidding for the Property will continue even if the Reserve Price is met. The Seller/Servicer may choose to re-Auction the Property if the Reserve Price has not been met.

    Do I need to provide a proof of funds or a prequalification letter prior to bidding on a property?

    No, but Xome reserves the right to incorporate Bidder prerequisites as needed based on Seller requirements and changes in applicable laws.

    What is a Buyer’s Premium?

    It is the fee collected by Xome that will be added to the amount of the Winning Bid as compensation for the Auctioneer in performing the Auction. The Buyer's Premium is to be paid by the Winning Bidder.

    When is 'Express Closing Program' available?

    Express Closing is available for select cash only transactions on Xome Auctions. If Xome is not able to close within a period of 20 Business Days from the point in which an Purchase Agreement is eSigned by the buyer, the buyer will receive a $1,000 closing credit on the TRID Closing Disclosure. Xome offers the Express Closing Program on Properties that:

  • Have a clear title.
  • Are Offered/purchased as Cash Only.
  • Are not Sold Subject to Seller Approval.
  • Have met the Reserve Price in Auction or the Own It Now Price has been agreed by the buyer.
  • What happens if someone outbids me when online bidding is about to end?

    The act of placing a bid at the last moment in the hope of winning is called Auction sniping and is intended to deny other Bidders time to place a higher bid. To provide transparency and a fair bidding opportunity, we extend the Auction time if a last-minute bid is received.

  • If you are outbid within the last 5 minutes of an Auction, we will notify you via email and the Auction will be extended for 5 minutes. The Auction will be extended by 5-minute increments until 5 minutes have passed without bidding activity.
  • Note: We recommend you track email alerts and keep an eye on listings that are nearing their time limits.
  • Do I need to register to bid for an online auction?

    Yes, registration with Xome is free and easy to complete. Xome wants to grant you access to many of our exciting Events that we are updating regularly; we just ask that you agree to the necessary legal agreements such as the Auction Participation Agreement and eSignature Agreement before being granted access to bid on Xome’ s network of Auction Properties.

    Registration links are located throughout Xome Auctions. Within the Auction Calendar, they are located next to each Event. When viewing an Auction Event inventory, the registration link is available on the top left side of the page. If you are viewing a property detail page, the registration link is located on the top right corner. Click "Register" and complete the online registration form and submit your information.

    How does Instant Secure Online Contracts work?

    A Purchase Agreement is created when the buyer submits an offer (pre-Auction or Own it Now) or is the Highest Bidder at close of Auction. That Purchase Agreement is then immediately available to review and eSign. In cases where the offer requires Seller approval, a signed Purchase Agreement will aid in expediting the review and approval process.

    Is a fee required to submit a bid?

    There are no fees to bid; however, you must register for the Auction Event. During the Event registration we may place a hold of $1,000 on your credit card before you can place bids on Properties within the Event. If you are not the Winning Bidder, the hold will be removed within 24 hours after the Event ends. If you are the Winning Bidder, the hold will removed within 24 hours of the escrow/closing company’s receipt of your earnest money deposit.

    Do I need an account in order to place a bid on a property?

    Yes, registration with Xome is free and easy to complete. Xome wants to grant you access to many of our exciting Events that we are updating regularly; we just ask that you agree to the Auction Participation Agreement and eSignature Agreement, and acknowledge the ABA Disclosure, before being granted access to bid on Xome’ s network of Auction Properties.

    How long will each event last?

    Generally, the online Auction Event will occur over a 4-day period. The Event will not conclude until all bidding has finished.

    If I am the Winning Bidder, what are the next steps?

    You will receive an email including a link that will verify your bid and confirm your registration information. In addition, there will also be a notification within your user dashboard regarding the express checkout form. This form must be completed within 24 hours. You will receive further closing information that will be provided along with the purchase contract.

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