• Report: #921076

Complaint Review: Auction.com

  • Submitted: Wed, August 01, 2012
  • Updated: Mon, August 06, 2012

  • Reported By: scambuster — Michigan United States of America
Auction.com
california Internet United States of America

Auction.com False Advertising Internet

*UPDATE Employee: Michigan Broker Response

*UPDATE Employee: Auction.com Explains Brokerage Fees

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I am a Real Estate Broker in Michigan.  I sold a property to a client off Auction.com and their share of brokerage fee is abismal.  Also, I have had several of my commercial clients call me and say they want to put their properties on Auction.com because Auction.com states, and I Quote "Brokers receive the full fee they are entitled to under their existing listing agreements".

This is a straight out misrepresentation and lie to gain potential clients, even brokers, sell their properties, keep the brokerage fee AND the auction premium fee and give the listing broker nothing or an extremely minimal portion of their listing agreement.  I had a client listen in and the person on the Auction.com telephone stated "only some commercial properties qualify for a portion of the listing agreement, but most do not honor the listing arrangement."  When my client heard this, he was furious and thankfully did not list with them.

Also, the "broker of record" is Auction.com's Attorney, Lives in California and has no place of business here in Michigan.  I really think Realtors should boycott, heavily this company.  It's a great place to market properties, but watch the hidden fee's and extreme False advertising.


This report was posted on Ripoff Report on 08/01/2012 04:09 PM and is a permanent record located here: http://www.ripoffreport.com/r/Auctioncom/internet/Auctioncom-False-Advertising-Internet-921076. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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Updates & Rebuttals

#1 UPDATE Employee

Michigan Broker Response

AUTHOR: Peter C. - (USA)

Dear Michigan Broker  

My name is Peter Chevalier and I oversee Customer Service at Auction.com.  I am sorry to hear that you havent had an excellent experience with us! 

I would like to try to address your concerns in this post. Please do reach out to me (contact info at the bottom) for additional discussion on this matter if this response doesnt answer your questions.

1. Cooperative Broker fees for properties sold on Auction.com:  The cooperative broker fees paid can indeed vary by seller and asset type.  For instance, our REO sellers pay cooperative brokerage fees which vary seller to seller.  Likewise,
if it is a short sale auction asset, the agreement made between the seller and the sellers broker is what dictates the amount of the cooperative brokerage commission paid.  It is unclear in your case but it sounds like you were
the selling broker in regard to the asset sold on Auction.com.  As stated in our advertising and throughout our website, the cooperative brokerage commission offered is clearly stated on the asset detail pages of our websites for all asset types so you know, before working with a client on an asset placed in auction, what the cooperative brokerage commission amount offered is (which is based on the winning bid amount).   The terms and conditions of the auction also address broker cooperative fees, how they are calculated and how they are disclosed.    For commercial assets,
the Company is merely the auction firm.  The arrangement regarding listing broker commissions and cooperating broker commissions is a matter between the seller and the listing broker.  Auction.com does not participate in the
discussion regarding commissions and merely follows the written directions that they are provided.  Commissions paid on commercial assets are paid by the seller and not the auction firm.

2. Auction.coms broker of record:  The Company and its affiliates comply with the licensing laws in all of the states in which business is conducted and maintains brokerage licenses. 

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#2 UPDATE Employee

Auction.com Explains Brokerage Fees

AUTHOR: Peter C. - (United States of America)

Dear Michigan Broker
 
My name is Peter Chevalier and I oversee Customer Service at Auction.com.  I am sorry to hear that you havent had an excellent experience with us. 

I would like to try to address your concerns in this post.  Please do reach out to me directly at 800-793-6107 for additional discussion on this matter if this response doesnt answer your questions.

1. Cooperative Broker fees for properties sold on Auction.com:  The cooperative broker fees paid can indeed vary by seller and asset type.  For instance, our REO sellers pay cooperative brokerage fees which vary seller to seller.  Likewise, if it is a short sale auction asset, the agreement made between the seller and the sellers broker is what dictates the amount of the cooperative brokerage commission paid.  It is unclear in your case but it sounds like you were the selling broker in regard to the asset sold on Auction.com.  

As stated in our advertising and throughout our website, the cooperative brokerage commission offered is clearly stated on the asset detail pages of our websites for all asset types so you know, before working with a client on an asset placed in auction, what the cooperative brokerage commission amount offered is (which is based on the winning bid amount).   The terms and conditions of the auction also address broker cooperative fees, how they are calculated and how they are disclosed.  

For commercial assets, the Company is merely the auction firm.  The arrangement regarding listing broker commissions and cooperating broker commissions is a matter between the seller and the listing broker.  Auction.com does not participate in the discussion regarding commissions and merely follows the written directions that they are provided.  Commissions paid on commercial assets are paid by the seller and not the auction firm.

2.Auction.coms broker of record:  The Company and its affiliates comply with the licensing laws in all of the states in which business is conducted and maintains brokerage licenses.  

Thanks again for your feedback, and again, I'm happy to discuss this further at 800-793-6107.

Sincerely,
Peter

Peter Chevalier
Director of Customer Service
 Auction.com 
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