Real Estate Investor · NJ · Member since 2011 · 32 posts · 2 votes
I'm looking a property on auction.com/REDC and it is an online bidding auction only.
I have done my due diligence, know what I want to pay, know its an "as is" sale but does come with clean title.
My question: Is there anything I should be aware about the way they conduct their business/contracts that might be shady or put the buyer in an unfair position?
I know the prices tend to be high but I'll make my offer and call it a day, I just don't want to get caught because I missed something in the fine print.
If I "win", I would have my atty look at it anyway.
Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
15y
Keep in mind that REDC is basically just a glorified lead generation system, and not an absolute auction. In other words, if you have the high bid, you're not guaranteed to get the property; instead, your bid will be submitted to the asset manager, who in turn can accept it, reject it or counter it.
In my experience (and from speaking to other investors), about 50% of REDC bids are accepted by the asset manager, with the maximum discount off of list price at about 60-65% (anything less is almost always rejected or countered).
Real Estate Investor · Southern, CA · Member since 2010 · 84 posts · 30 votes
15y
The only way out of an REDC auction is if there are environmental hazards or it is declared condemned. Keep that in mind when bidding.
I successfully won an REDC auction property for 190K, pd 199K with the 5% fee, fixed it up for 11K and it appraises for $330K ARV as of this month. :) Not too shabby. :) As always, due diligence is a MUST!
Auction.com is awesome. Just do your homework, be prepared and know what you are willing to pay and you will be fine. The process is really streamlined, the info on the website is pretty thorough and the bidding assistants online and at the live events are pretty helpful. Good luck