I bought a house at an REDC auction in N. California Dec 2008. It took several months to close escrow (3/6/2009), but it was worth it. The home we purchased was taken back by the bank for 596,000 and we got it for 265,000. Even with the 5% buyers premium we got a great price. I will buy from an REDC auction again.

Hi Rich, my husband and I went to an REDC auction in NYC on June 7. I'm senior real estate editor of HGTV's http://www.FrontDoor.com and I did a vlog of the event. See what it was like here: http://blog.frontdoor.com.

We're also real estate investors so we were looking for ourselves as well. It was definitely an interesting experience. You can get a deal at these auctions, but most of the properties at this particular one were in neighborhoods that were too "rough" for our taste, so we didn't buy anything.

I went to an auction April 30, 2009 in Brunswick, GA. The auction has held in a large home that was going to be auctioned that day along with 8 other homes. There were approximately 25 to 30 people there. Some were real estate agents, some were there to bid and some were there just to observe. The house that the auction was held in was listed in the brochure at $630,000.00 Personally, I was surprised that it wasn't listed for more. When it came time for this house to be auctioned there were only two bidders. The $630,000.00 house sold for $275,000.00 plus the 15% of the sale price the auction company takes. My real estate agent that accompanied me to the auction, knew the person that bought the home. There was no scam, there were no planted bidders. Just a lucky bidder who bought a $630,000 home for $275,000.

REDC auctions are a scam , with hidden reserve price not the min bid price ,they also have fake bidders driving up the price to and past the hidden reserve price. Just make an offer trough a real estate agent and save yourself the fees. redc employees are scaming professional liers trained to cheat you. you can outbid the auctioneer and everybody else and be the winning bidder and the bank morgage holder still refuses your bid,meanwhile redc holds your money. save your self the trouble and wasted time,if the bank will take lets say 100K for a property trough redc they will take 100K trough a realtor without the scaming lies and fees + hidden fees save yourself some money. shure contact a independent realtor for any redc listed property you like make your offer and cut the professional cheats out of the deal.REDC IS A BIG SCAM TO RIP YOU OFF> just google redc ripoff and read outhers opinions.goodluck redc stayaway or wast money.

Hello Rich, more than likely I will be at the next REDC Auction, I haven't missed one yet since 2008. I also attend Hudson & Marshall's Auctions. If you would like to attend the next REDC let me know. I would be happy to guide you through the process.
Angela Jensen
Coldwell Banker
jensenatj@aol.com

Recently I tried to purchase a property from REDC auction. During the loan process, I discovered the property square footage was incorrect and turned out to be 50% less of what the catalog stated. Lender agreed that my deposit will be returned after research. The title company shot back stating I bought it 'sold as-is' and referred me to the sales contract which states sq footage could be approximate. I'm no expert but the word approximate doesn't mean 50% less. I suggested my full refund but still fighting the title company. Next step will be to go to court and let a judge decide the outcome.

Having said that....I may agree some auctions may be a good idea but take the risk and realize these guys hold all the cards. But why go to these auctions these days when it's a buyers economy everywhere now? Spend the day at the auction and jot down the amount people purchase. You may realize some properties are way cheaper getting it own your own and with realtors who can assist with every step of the way.

Good Luck.

Hello Rich - I have been to all the REDC Auctions since 2008. The answer to your question is, it all depends. But there are deals to be had. If you have a day to spend at the Auction you should attend one, if nothing else to gain some experience. If you understand the rules and guidelines for buying at an Auction it could turn out to be a good thing for you. Good Luck!
Angela Jensen
Coldwell Banker
(954) 465-1388
jensenatj@aol.com

Rich,

Here is a list of Trulia Questions and Answers that have REDC in them. I asked a similar question a couple of months ago and was cautioned to stay away but I will let you make up your own mind after doing some reading of your own.

http://www.trulia.com/voices/q_REDC/

Cameron Piper