Online real estate marketplace Auction.com announced Wednesday that it is launching SmartSale, a technology-powered option to foreclosure that lets distressed homeowners list and sell their property.
SmartSale allows homeowners to sell their homes through direct offers from buyers or an auction process. For those who are struggling to repay their mortgages, the process aims to help them avoid foreclosure and retain their home equity. Auction.com has long been a leading platform for bank-owned (REO) and foreclosure sales to real estate investors and others seeking a discount. It has facilitated more than 533,000 transactions for a total value of $66 billion.
“Every distressed customer deserved a chance to protect their equity, and Auction.com is going beyond auctions to make that possible,” President Ali Haralson said in a statement.
“SmartSale is a transformative solution for families facing the threat of foreclosure,” Doug Whittemore, Auction.com’s head of strategic growth, added. “In addition to all the benefits of a traditional home sale, our customers gain access to multiple sales pathways tailored to their unique situation, support from a local real estate agent and our dedicated Concierge team, a curated nationwide buyer network, and much more.”
Auction.com referenced recent survey data from Clever Real Estate showing that roughly 20% of sellers prefer nontraditional sales methods — such as for sale by owner (FSBO) or all-cash transactions through an iBuyer — over the use of a real estate agent.
SmartSale is designed as an alternative for sellers who are “navigating financial challenges or simply seeking greater control,” Auction.com explained. They can list their homes through a competitive bidding process that includes real-time updates, or they can accept direct offers from buyers to allow for contingency clauses, financing terms, proof of funds, leaseback options and other details to be negotiated.
Auction.com reported that demand for distressed homes fell in the third quarter of 2024. The supply of properties available at auction dropped to its lowest level since Q3 2021, when the post-pandemic federal foreclosure moratorium was still active. Buyers surveyed by the company at that time said that higher acquisition costs, higher rehabilitation costs and unfavorable mortgage rates were the key factors keeping them out of the market.
