bidding
process

Know all of your options before the auction begins.

Online Bidding

Before you bid on a property, make sure you’re prepared. Study the property details page carefully and do your due diligence. You should also prepare your Proof of Funds. After you are satisfied with your research, follow these steps to begin bidding:

  • Log into your Auction.com account.
  • Go to the property details page. Take note of the auction dates because you will need to place your bid within the online bidding period during the auction.
  • When you register to bid, you’ll need to have your ID verified. Buyers can only use one ID with one account that is linked to their Bidder Profile. This one-time process is done to ensure a secure and smooth buying experience for buyers.
  • You’ll have an opportunity to sign up for helpful “Action Item Text Alerts.”
  • When the auction begins, type in the amount you would like to bid within the bid box and click the “Bid Now” button.
  • You will be required to bid at or above the increments stated on the property details page. The increments, which may change throughout the auction, will be shown when the auction begins.
  • Check in often, especially in the final minutes of the auction. Bids that are placed within the final minutes will trigger an overtime bidding period to allow all interested parties to keep bidding. This extended period gives everyone a chance to place last minute bids.
  • When the auction is over, we’ll send you an email letting you know if you were outbid or if you were the highest bidder. If you are the highest bidder, we will let you know if the seller accepts your bid. Sometimes, the highest bid is still too low for the seller to accept. If the seller accepts your bid, you won the auction!

Max Bid

Online auctions move quickly, and it’s not always possible to monitor bidding in real time. Auction.com’s Max Bid feature allows you to enter the maximum amount you’re willing to pay for a property so you can stay competitive with automated bidding, without exceeding your limit.

Pro bidders use Max Bid because it helps buyers participate safely and efficiently without needing to place every bid manually (unless you want to). It’s especially helpful if you’re managing multiple auctions at once or getting comfortable with the pace of online auctions. 

How Max Bid Works

When you set a Max Bid, you’re authorizing the highest amount you’re willing to pay for a specific property. Your Max Bid is not the price you’ll pay — it’s simply the limit you set.

During the auction, the system automatically places the lowest possible bid increases on your behalf only when you’ve been outbid by another bidder or a seller counter bid. Once the Reserve is met, and you’re the highest bidder, you WIN — always within your limit.  This helps you stay competitive without watching the auction and ensures you never bid more than needed to stay in the lead and never more than your Max Bid. 

You’ll also receive notifications when bidding activity affects you, so you can stay informed and adjust your strategy if needed.

Adjusting Your Max Bid

When adjusting your Max Bid, it’s important to understand that there are two separate numbers at play:

  • Your current bid — the live bid that has already been placed in the auction
  • Your Max Bid — the highest amount you’ve authorized going forward

Once a live bid has been placed (manually or automatically), that bid is binding and cannot be removed — just like any auction bid.

With that in mind, here’s what you can do:

  • Within an hour of submitting your Max Bid and before bidding begins, you can decrease or remove your Max Bid.
  • After bidding starts, you cannot decrease or remove your Max Bid.
  • You can increase your Max Bid at any time.
Manual Bidding

You can place manual bids at any time while the auction is in progress, even if you have an active Max Bid on the property. Manual bids immediately become the current or live bid, and Max Bid will continue to work within the updated limits you’ve set.

Seller Reserve and Counter Bidding

In many auctions, the seller sets a Reserve Price, which is the minimum amount they are willing to accept for the property. If bidding does not reach this Reserve, the property will not sell.

If bidding stalls below the Reserve Price, the system may place a seller counter bid to move the auction forward. Counter bidding is a common and transparent auction practice used across many industries, including real estate, automotive, and art auctions.

Seller counter bids are clearly shown in the bidding history. Once the Reserve Price is met, counter bidding stops and the highest bidder wins the property.

Max Bid responds to seller counter bids the same way it responds to competing bids — by placing the lowest possible bid increase needed to stay in the lead, and never beyond your Max Bid.

Counter Bidding
  • Counter Bidding is a common practice used by all major auction houses. Here’s how it works: If the seller sets a Reserve Price, or the minimum amount they are willing to accept for the property, and bidding stalls out before reaching that Reserve, the auction system may place a seller counter bid to allow the auction to move forward.
  • When the bidding reaches the Reserve Price, the auction system displays the status “Reserve Met,” counter bidding stops, and the highest bid wins. Please note: The exposure of counter bids is not required in every state.

Disclosing the Reserve Price
  • The Reserve Price is disclosed in certain instances. It’s up to the sellers to decide whether to disclose the Reserve Price (or minimum amount that they will accept for a property). The sellers have the option of accepting an offer that is less than the Reserve Price, but once the Reserve Price is met, the sellers should be agreeable to sell the property.
  • When the Reserve Price is disclosed, you can find it on the property details page under the number of beds/baths or under the Current Bid or Starting Bid. You can also search the site to find properties that disclose the Reserve Price.

FREQUENTLY ASKED QUESTIONS

The Reserve Price is the minimum amount the seller is willing to accept. It is set by the seller and is not typically disclosed. In many cases, bidding may begin below the Reserve to allow buyers to engage earlier, help uncover true market value, and create more opportunities for successful sales. When bidding reaches the Reserve Price, the auction will display “Reserve Met,” and the highest bid at the end of the auction wins. If the Reserve is not met, the seller may still consider the highest bid for approval.

The Reserve Price is the minimum amount the seller is willing to accept and is not typically disclosed. Starting below the Reserve allows buyers to engage earlier, helps uncover true market value, and creates more opportunities for successful sales. It also gives sellers flexibility as bidding unfolds, including the option to consider the highest bid for approval if the Reserve is not met.

Counterbidding is a common practice used by major auction houses. In a reserve auction, if bidding pauses before reaching the seller’s Reserve Price, the system may place a seller counterbid to keep the auction moving forward.

Nearly half of REO properties sell for less than the original reserve. Starting auctions below the Reserve allows buyers to engage, helps uncover true market value, and creates more opportunities for successful sales that benefit both buyers and the sellers.

When bidding reaches the Reserve Price, counterbidding stops, the auction displays “Reserve Met,” and the highest bid at the end of the auction wins.

Both the Reserve Price and Credit Bid are industry-standard, legal, and designed to help buyers and sellers meet at a price the market supports. The main difference comes down to how the minimum price is set and used during the auction. A Reserve Price, unlike a Credit Bid, is not an actual bid entered at auction. Here’s a breakdown of how each works and what sets them apart.

Reserve Pricing is used in bank-owned (REO) and private seller auctions. The seller sets a confidential minimum price, and if bidding stalls below that threshold, the system may place a seller counterbid to guide activity toward the Reserve. Once the Reserve is met, counterbidding stops and the highest bidder wins in the end.

Credit Bids are used in foreclosure auctions. The lender sets a minimum price threshold and enters a bid (called the Credit Bid) in this amount. Buyers must exceed this amount to purchase the property. The highest bidder above the Credit Bid wins in the end.

Auction.com does not bid as a buyer or compete with buyers. We apply the auction mechanics set for reserve auctions, including displaying seller counterbids when applicable, so the auction can progress toward a potential sale.
This structure helps buyers understand where a seller’s expectations are while still allowing market demand to shape the outcome.

Auction.com operates the marketplace where buyers and sellers come together. The platform runs the auction, displays bids in real time, and applies the auction rules consistently so all participants are operating with the same information.

Auction.com doesn’t decide what a property should sell for. Instead, the auction process helps surface real market demand so buyers and sellers can meet at a price the market supports.

If bidding pauses before reaching the seller’s Reserve, the system may place a seller counterbid to keep the auction moving forward. This is a common practice used by major auction houses and reflects how reserve auctions handle pricing uncertainty.

When bidding reaches the Reserve Price, the auction displays “Reserve Met,” counterbidding stops, and the highest bid at the end of the auction wins.

Starting below the Reserve allows buyers to engage earlier, helps uncover true market value, and creates more opportunities for successful sales that benefit both buyers and sellers.

If bidding stalls short of the seller’s minimum, counterbidding helps guide the auction forward. Once the Reserve is reached, the auction transitions to a straightforward highestbidwins outcome at the close.