Most of the properties are sold "as-is" - so careful inspection is mandatory. REDC typically doesn't have the property disclosure report for a home up on it's web site until after the open houses take place.

Home are held open for three days before the auction and those who want to have a home inspected must bring their inspector to one of those open houses.

REDC provides limited disclosures on each property - which vary depending upon which state you are in. REDC listings include a minimum bid price and sometimes a "previously valued" price. Unlike some foreclosure sales, REDC promises clear title to the home.

To get into the auctions, a buyer has to bring a $5,000 cashier's check made out to themselves to show they have the deposit for a home (a $10,000 cashier's check is needed to purchase each home.) Winning bidders have to immediately come up with a 5% earnest money deposit on the purchase price of the property, plus a 5% buyer's premium (a commission.)

Bidders hold up cards to bid, then a REDC "ring man" called out the bid to the auctioneer, often followed by a loud yell. The ring man confirmed bids with the bidders, and sometimes goads them to go higher.

Except where prohibited by law, the auctioneer has the right to bid up a property on behalf of the seller. Sometimes - it can be unclear whether prices escalate as a result of the auctioneer's right to raise prices on behalf of the seller or based on a bid from the audience.

Each property has an unpublished seller's reserve price. So if the winning bid did not meet this price, the seller has up to 15 days to reject the bid and return the buyer's deposit. Thus when the auctioneer says "sold" it's a relative term.

Some homes are sold in "cash only" deals, due to their poor condition. As always - buyer beware.

If you are a potential home buyer in Illinois - call us at 847-566-7558 and we can talk about representation -- and home inspector referrals / and different auction company inventory you might be interested in - should you become a client.