Having bought several properties at an auction, I learned that the "labels" aren't always what they appear to be. Bottom line, I ended up overpaying for my properties because I thought ALL auction properties were good deals. If you haven't already done so, YOU MUST read my blog about the 10 Biggest Mistakes Buyers Make in Today's Market, of which Mistake Number 7 is trying to find your bargain at an auction.
Nevertheless, I attended their latest auction to offer support to buyers who wanted information on the process and make sure I was up-to-date with what was happening in the Atlanta home auction market.
Not surprisingly, 95% of the people I spoke with and interviewed were disappointed with "deals" they thought they would get, the mark up fees, and the overall the auction process. Mr. Jay Canon explains he felt that he was paying "retail" prices and didn't see the value in buying a property and having to bid against 200 other people to get it.
I always encourage my buyers to attend the auctions FOR FUN!!! BUT DON'T EXPECT TO FIND YOUR DEAL OF A LIFETIME!!! One thing is certain DEALS OF A LIFETIME are out there.....TONS OF THEM... And, if you REALLY want a good deal, call me and let me show you how to offer in on the property NO ONE'S offering on, instead of putting you in a room with hundreds of other buyers all going after the same one. Here's a little taste of what you would expect to find at an auction.
REDC-Real Estate Disposition Corporation Lender Foreclosure Home Auction in Atlanta, Georgia
Winter, I went yesterday with one of my Buyers. My Buyer was interested in a home off of Lavista Rd in Atlanta. It was a great little house, renovated, etc. We did see it in advance of the auction. Starting bid was $89,000. It ended up selling for $192,500, before the 5% seller's premium. I think we could have got it pretty close to that just by putting in an offer before the auction and going the traditional route. By the way, it wasn't my buyer that got the house.
Jen,
Unfortunately, this is a common occurance. You absolutely could have gotten for less before the auction because the lender had to pay to have the property auction off. I talked to two people this weekend that got winning bids and the banks REJECTED their offers....I mean how do you go to an auction where the homes are going to be sold for a min. amount, you offer more and then they still reject it.
Go find your buyer another deal! There's tons of them out there. Good luck.
My experience with this company was very sub-standard. I would not recommend that anyone deal with this "nataional" company as they are rude, condescending, and opearate with some pretty shady people. I felt like I was dealing with a pack of con-men on a sting.
I would recommend that if you wish to purchase property at auction, that you continue to visit your local court house for first-time foreclosures. The deals will be much better since you are often only bidding against the first lien holder who is there to simply protect their mortgage. Even if you are not successful against the bank, you can obtain contact information and acquire the properly shortly thereafter - and often at a lower price!
I have purchased property from the National Company "Williams & Williams" and found them to be helpful, polite, and informative. I would rate Williams & Williams (williamsauction.com).
I going to the REDC auction in Houston 2009. Based on the information I have been reading it seem scary. Can you get a good deal on these foreclosured homes? Are the reserved prices close the the value of the homes? Thanks
I bid on a property and won it at the auction in Atlanta a few weeks ago. At least that's what I thought. The bank did not accept the offer and they are not even in business any more!! The offer was more then 50% of the listing price for the property so it is not like the super low 10k deals that were happening. Now I am suppose to go back and forth with the bank, what is the purpose of the auction? At this point can I go directly to the bank? They also dropped financing the day before the auction on more then 80% of the properties. I am not satisfied with this company or this process, I'm going back to the courthouse steps.
Be very careful of REDC. The contract that you have to sign waives all of your rights as a buyer, and lets the seller walk away at any time even after they sign the contract. We have a home under contract with this company and have performed on our side. They are telling us that the seller does not intend on perfoming unless we pay an additional $36,000. We have gone to two attorneys and both have told us that we can not make them do anything due to the one-sided contract. I will be filing compliants with HUD and other consumer protection groups. This company needs to be stopped and buyers protected. DO NOT go to these auctions it is a scam.
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Winter, thank you. This was great insight to me. I have never been to one of these.