BiggerPockets

There is a good sized auction of govt backed homes coming up for sale in Fl the 29th. I'v had an asst working on researching these.
Have any of you attended these? Have you ever bought anything at them? I watched online a TX auction currently going on. There is a minimum starting bid. It appears there is also a RESERVE that must be met. Many of these properties have been previously listed.
I'm curious if the reserves just make this a waste of time or not? Where the home has been listed, and unsold, the reserve would be relative to that number, but lower. Then again, this is the govt. so all logic should be tossed.
If any member has been to these auctions, please reply. It is a cool website, if you're interested in your area. auction.com. They have commercial, sfrs, notes etc. Rich

Rich,

I have heard the same itms as J. Scott. I know of one group that "chased" several properties at an auction, but never actually purchased anything.

Hope it works out better for you!

Rich,

Let us know how things turn out. I would be very interested in knowing what transpires.

Rich, knowing how experienced you are, I have a prediction: after 30 minutes at the REDC auction you will walk out in disgust.

I went to a bunch of these when I was starting out. This is in California.

They are targeted at non-investors, they have lenders there to provide funding. This is key. Once someone wins they go to the lender to get financing. If they can't they auction it again.
The atmosphere is hyped up. You're in an auditorium with several thousand people.
If your bid is too low the banks will reject it. The reserve price is not stated.
You have to pay 5% right then and there. If you back out of the deal they'll keep your money.
I've heard rumors of REDC planting people in the audience to drive up bids. If one of them buys it they just say "oops, that buyer couldn't get financing, we'll auction it again".

Rich, I targeted a few in Central Florida on their previous lists. All of them were listed with the MLS. The MLS listings will put language in their listing that the "property is currently up for auction"....so its deceiving. The listing price will say $84,000 and then the auction will say minimum price $5,000. I've also found that the listings start out with one realtor for six months....they the #1 REO Realtor moves in for the kill, because they are the #1 REO Realtor.....they get the listing and simultaneously put it up on auction with REDC. I think the listing agent ultimately controls the events. If you stick to one specific target location I think you will find this as well. I also found that if you don't make your offers through #1 REO Realtor, they seem to have a way to always find buyers to outbid you "in house" by even $500.....go figure

Rich, try one listing and make your own assessment. Then you wouldn't have wasted a lot of time. I believe however Francis is right on the money. The financing guys are sitting right there like wolves waiting.....the REDC auction is geared for owner-occupant purchasers trying to achieve the American Dream with the 5% down, not us bargain shoppers.

Just testing from earlier this morning problem.