Xome (pronounced zome) is an online real estate auction platform for residential and commercial properties, foreclosures, short sales, and more.
When sellers list properties on Xome, they receive a complimentary MLS listing and the support of an Xome agent to assist in marketing and auctioning their home. Buyers can explore properties through Xome’s exclusive marketplace, register for timed auction events, and bid on their preferred properties.
While Xome promotes its platform as simplifying the selling and buying process, potential users should be aware of its unique fee structure and terms. For example, buyers must pay a 5% Buyer's Premium on top of their winning bids. This aligns with standard real estate auction practices but could impact overall costs for buyers.
Overall, Xome is ideally suited for distressed property owners who want to sell quickly for cash. Listing on Xome should get you more money than going to a direct investor. It provides a competitive bidding environment that helps maximize the value for both buyers and sellers, making it a viable option.
Our Xome rating
| ⭐️ Xome: Overall score | 4.0/5 🟢 |
|---|---|
| Service quality | 4.0/5 🟢 |
| Offer quality | 4.0/5 🟢 |
| Fees | 3.5/5 🟢 |
| Customer reviews | 4.5/5 🟢 |
| Credibility | 5.0/5 🟢 |
Who does Xome work best for?
Xome offers sellers the opportunity to list for free on its online auction platform, which the company claims puts "your property in front of millions of serious, competitive buyers nationwide." But, before listing your house with Xome, consider whether your property is best suited for an auction platform.
We think that Xome is great for distressed properties that may appeal to investors. It may not be the best choice for homes in excellent condition that could fetch a higher price on the multiple listing service (MLS).
If you determine that your home is a better fit for a more traditional listing on the MLS, consider turning to discount brokers like Clever Real Estate, who provide full-service realtors at a lower cost than traditional agents.
On the other hand, if you decide a cash sale is your best option, you can compare Xome with other companies that buy houses for cash. Instead of comparing options independently, we recommend using a top-rated offer comparison service like Clever Offers.
Get competing offers from leading cash buyers in your area. Plus, get an expert realtor's opinion of what your house is really worth — with no added fees or obligation to move forward.
Get Cash OffersIn-depth Xome review
Service quality
📊 Our rating: 4.0/5
- Free, easy-to-use platform for sellers
- Competitive bidding may drive up prices, benefiting sellers
Xome offers sellers a free, user-friendly platform, eliminating the need for a traditional agent and potentially reducing realtor fees. Sellers benefit from the ability to control the terms of sale, including setting a minimum sale price and the option to refuse any winning offer.
However, buyers should be aware that Xome's bid strategy, designed to increase final sale prices, might make it more challenging to secure a deal without entering a bidding war.
There have been mixed reviews about Xome's auction methods. The company participates in the auctions, purportedly to foster competitive bidding, but some buyers have skepticism about this practice. While some users report positive experiences with Xome, others have expressed concerns about the transparency of the bidding process.
Offer quality
📊 Our rating: 4.0/5
- Sellers can set their own price goals
- Xome’s bid strategy may benefit sellers by increasing final sale prices
- Few reviews from sellers about the offers they received
Xome allows sellers to set their own minimum and desired sale prices, offering guidance to help achieve close to the target sale price. The platform actively participates in auctions by placing bids to help drive up the final sale price. This strategy has met with mixed reactions:
Some sellers have experienced very positive outcomes, with homes selling quickly and for more than expected. Others, however, have found the process less favorable when homes didn’t sell at auction.
How much do buyers on Xome pay for houses?
Even with bidding help, you shouldn’t expect to make full market value for your home when selling through Xome. Many buyers on the platform are investors, who generally want to spend less for homes so they can flip them for a profit later on.
Buyers also pay at least 5% more in fees on Xome than they would purchasing a home from a seller directly. So they may be encouraged to offer less on a home to make up for the commission and service fees after the sale.
Fees and other expenses
📊 Our rating: 3.5/5
- Zero fees for sellers
- Refundable $1,000 deposit for buyers
- 5% premium for buyers on top of bid price
Xome’s platform is entirely free for sellers and includes an MLS listing and online support.
Buyers, on the other hand, should be prepared for the 5% "Buyer’s Premium" added to winning bids, which can increase the overall cost of the property. The 5% premium is a commission between the seller’s Xome Agent, the buyer’s realtor, and Xome itself. This commission structure is exactly the opposite of a standard property sale, wherein sellers are responsible for paying all realtor fees.
Xome reviews and complaints
📊 Our rating: 4.5/5
- Positive reviews for its seller platform
- Some complaints regarding transparency of the bidding process
Xome customer reviews are mostly positive. It has positive ratings on the review site Birdeye (4.8/5) and more mixed reviews on the Google Play store (4.0/5) and Google (4.3/5).
While most customers appreciate the ease of use and the platform's effectiveness, there are some concerns about undisclosed information, such as liens on properties. Xome is known for providing a platform that reaches many buyers and simplifies the home auction process. However, buyers should exercise caution and ensure thorough due diligence when purchasing through Xome.
Credibility
📊 Our rating: 5.0/5
- "A" rating with the BBB
- Large public company with a significant compliance department
Xome is a legitimate company based in Lewisville, Texas. It was founded in 2013 and is currently led by Mike Rawls, CEO. The platform is free to home sellers and makes money by charging buyers a fee for purchasing through the online auction platform.
To enhance the security and integrity of transactions, Xome implements rigorous checks such as ID verification, license verification, and comprehensive title work before listing properties. These measures ensure higher transactional transparency and help mitigate risks associated with property claims and ownership.
Despite its strengths, Xome has received some complaints regarding the bidding process and undisclosed information about properties. However, these issues are common in the distressed property market, and Xome's large compliance department helps ensure the company follows regulations and addresses customer complaints.
How does Xome work?
You can set the minimum price you’re willing to accept for your property — called the "reserve price" — and watch buyers compete for your home during the 3–6 day auction period.
Other key things to know include:
- Xome auctions are non-binding: Xome's auction format means sellers can accept or reject bids, send counteroffers, or withdraw their property at any time. This provides sellers flexibility but may also lead to uncertainty for buyers.
- Bid strategy: To stimulate competitive bidding, Xome may participate in the auctions with placeholder bids to help sellers achieve their desired asking price. This strategy benefits sellers but may create challenges for buyers, particularly those looking to avoid bidding wars.
- Realtor commission structure: Buyers represented by real estate agents must be aware that Xome requires these agents to register with their platform. Additionally, Xome's commission structure is unique; agents may receive a commission of 2%, deducted from the buyer’s premium rather than being paid by the seller.
Selling with Xome
Xome offers home sellers a free online auction platform. When you sign up, Xome lists your property on the MLS and sets you up with online tools to sell your property.
While you receive an MLS listing and an agent, like in a traditional real estate sale, Xome’s focus is selling your home at auction. Given the unconventional fees buyers need to pay this can limit your potential pool of buyers.
Here are more details on how it works:
1. Fill out an order form with your contact information and address.
2. Your assigned Xome Agent will call you within one business day for a consultation. During that call, you must sign off on three agreements to proceed with the sale:
- Residential Auction Participation Agreement — required to list your home for auction[1]
- Auction Marketing Agreement (Residential) — how Xome will market your home what its responsibilities are before and during the auction[2]
- Auction Addendum (Residential) — terms and conditions that will accompany the sales contract when your home sells at auction[3]
3. Your Xome Agent helps you set a Reserve Price (the minimum you’re willing to accept for your home) and a Listing Price (the amount you want Xome to bid up to on your behalf).
4. Your Xome Agent begins marketing your home, listing it on the MLS and real estate sites like Zillow, Trulia, and Realtor.com. They’ll also help you coordinate showings for interested buyers.
5. Pick a time to list your home for auction, which lasts 3–6 days. Once the auction is over, you decide whether to accept the winning bid, counter it, or to list your home in a new auction.
7. Once you accept a bid, your Xome Agent helps negotiate the offer and close on the deal. You’re responsible for paying any seller closing costs, except realtor fees.
Unlike a traditional real estate sale, in which sellers cover all realtor fees, Xome puts this burden squarely on the buyer. Xome requires buyers to pay 5% to their winning bid to cover all realtor commissions.
Buying with Xome
Xome’s draw for buyers is its exclusive selection of properties for auction. The Xome Offer Marketplace contains real estate owned (REO), short sale, foreclosure, and luxury properties that can be found nowhere else on the market.
Here’s what buying with Xome looks like in practice:
1. Register for a free Xome account. You can browse properties and request tours.
2. Once you find a property you want to buy, you can register for the corresponding auction event. You must submit personal information, review legal agreements, and set up payment.
Xome places a $1,000 hold on your credit card when registering for an auction. You’ll get this deposit back when the event ends or, if you win a property, after you make your earnest money deposit.
3. Bid on the property you want to buy in fixed bid increments throughout 3 to 6 days. You can review your bids and the time left on the auction from your account dashboard.
"Own It Now" properties: some properties can also be purchased instantly for a fixed price, without waiting for the auction to close.
4. If you win the auction, you’ll get an email prompting you to review and electronically sign a purchase agreement. The final purchase price will be adjusted to your winning bid, plus a 5% "Buyer’s Premium," (which is used to pay both realtor commissions and Xome’s service fee).
5. Last is the standard closing process — like a home inspection, title and escrow service, mortgage qualification, property appraisal, etc.
What types of homes are eligible for Xome?
Xome allows sellers to list a wide variety of homes on the auction platform:
- Single- and multi-family residences
- Condos and townhomes
- Duplexes, triplexes, and quadplexes
- Manufactured and mobile homes
- Land
- Commercial properties
Xome locations
Xome is available nationwide, in all major metros.
Xome vs. alternatives
Other cash buyers
Xome doesn’t quite fit the mold when you think of a company that buys houses for cash, though it similarly pays sellers: a large lump sum and no added fees. However, an alternative cash buyer or iBuyer may be an alternative.
Searching on a cash-buying matching platform like Clever Offers may also get you the highest possible cash offer on your home — without the hassle of listing through a digital realtor and auctioning to the highest bidder.
These highly reviewed cash buyer competitors may give you a more straightforward process and possibly match Xome on price:
Customer Rating
Service Fee
Time to Close
Why We chose it
Pros and cons
Specifics
Clever Offers helps you find and compare offers from leading cash buyers in your area — all with a proven track record of ethical dealings with home sellers.
Because Clever's network includes local/national investors, iBuyers, and agents with experience listing homes as is, you get a range of offers to choose from — including alternative deal types that deliver a higher payout over time.
The 5-star rated company gets top marks for helping you make an informed decision without pressuring you to move forward. See our full Clever Offers review.
Customer Rating
Service Fee
Time to Close
Why we chose it
Pros and cons
Specifics
We Buy Houses is a solid choice if you need to sell fast or have a home that’s difficult to sell. You don’t need to worry about repairs and can close extremely quickly, sometimes in just a week.
The company has been around since 1997, carefully vets its investors' reputations, and is available in most of the U.S.
Franchise owners have a high degree of independence when it comes to the types of offers they can make. While the customer experience may vary between locations, most offices maintain above-average ratings. See our full We Buy Houses review.
Customer Rating
Service Fee
Time to Close
Why we chose it
Pros and cons
Specifics
We Buy Ugly Houses / HomeVestors will purchase homes that most other buyers won't. The company makes near-instant offers and it buys homes as-is, so you don’t need to worry about repairs or cleaning.
As a franchise company, service quality can vary between locations. Most locations maintain positive customer ratings, but the company recently received bad press for the questionable sales tactics employed by some of its licensees.
The company's broad availability makes it a viable choice for home sellers with limited options, but we strongly suggest comparing at least 2–3 other offers before entering into a contract. See our full We Buy Ugly Houses review.
Customer Rating
Service Fee
Time to Close
Why we chose it
Pros and cons
Specifics
Opendoor is for home sellers who want to skip the hassles of a traditional home sale — without sacrificing too much on price.
You can get an initial offer within 24–48 hours, choose your closing date, and skip repairs and showings. The company also pays much closer to market value than traditional house flippers.
Opendoor does charge a 5% service fee, and some customers complain that final offers are lower than initial estimates. See our full Opendoor review.
» MORE: Looking for more cash buyers near you? Check out the best companies that buy houses for cash to see our comprehensive guides for all 50 states.
Frequently asked questions
What is Xome?
Xome is a nationwide real estate auction website based in Texas, with an international office in Chennai, India. Xome also has various subsidiary companies and divisions that provide title services, mortgage solutions, field services, valuations, notary signings, and more.
Home sellers can put their properties up for auction on Xome's national marketplace while buyers can bid for, register for auction events, and place competing bids on residential and commercial properties, real estate–owned properties, short sales, and more.
How do you pronounce Xome?
Xome is pronounced like home, but with a z: zome.
What is a Xome auction?
A Xome auction is a multi-day period during which registered buyers can place bids on properties. Once the auction period ends, each property will (potentially) be sold to the highest bidder.
Xome auctions are non-binding, meaning that sellers can accept, reject, or counter any bid they like — even winning bids.
How long do Xome auctions last?
Xome auctions generally last between three and six days. The exact duration depends on the properties being sold; for example, short sale auctions occur over a four-day period and foreclosure auctions can last as long as a month.
How do I become a Xome agent?
To join the Xome Agent Network as a realtor, you must:
- Provide a valid license and certificate of insurance
- Pass a background check
- Use Xome’s agent tools exclusively for all Xome deals
- Pay Xome a referral fee for each deal you close
Methodology
We evaluate each company that buys houses for cash based on four core criteria and create a weighted score:
- Service quality (20% of final score)
- Offer quality (20% of final score)
- Fees and other costs (20% of final score)
- Customer reviews (20% of final score)
- Credibility (20% of final score)
Service quality
Customer experience. We rely on secret shopping and fact-checking interviews with company representatives to look for indicators that the company is professional, communicative, customer-focused, and ethical in its dealings with customers. We verify this information against customer reviews and interviews with past customers or professionals (realtors, former employees) who have had direct experience working with the brand.
Offer quality
Price. While nearly all cash buyers pay less than market value for homes, we look at how competitive the company's offers are compared to similar companies.
Purchase criteria. We also look at the company's purchase criteria to see how flexible and accommodating they are in making offers. Companies that offer a fair price for homes that other buyers won't purchase can still get a high rating for offer quality.
Fees and other costs
Competitiveness. We look at how the company's fees and other costs compare to competitors.
Value. We consider whether the fees are justified by the value offered.
Customer experience
Review analysis. We perform an in-depth analysis of all the available customer reviews to determine trends. We break down the reviews by theme and sentiment, and filter out spam reviews to determine our rating.
Company responsiveness. Negative reviews are part of doing business; however, we take note of whether a company is actively involved in resolving customer complaints.
Credibility
Trust signals. We look at how long the company has been in business, the number of verified customer reviews it has, how willing the company was to answer questions about their business model when we contacted them, and how easy it is to find detailed information on their website — including the names and contact details of specific team members. We also look at customer reviews indicating whether the company acts with honesty and integrity in their business dealings.
