Friday, March 21st, 2008 at 2:34 AM
Upcoming Auction
The Real Estate Disposition Corporation (REDC) is having another auction extravaganza across the country over the next few weeks. Southern California will have its turn between April 5th & 17th. They’ll be in San Diego on April 12th at the Del Mar Fairgrounds, an appropriate location because it should be a real circus. There are 217 properties scheduled to be auctioned off, begining at 9:30 am, and they expect to sell 25 to 30 properties per hour.
You need to bring $5,000 to get a bidder’s paddle, and if you’re the lucky winner they’ll take a 5% non-refundable deposit that day. You do get a 30-day escrow period, and can use your own lender, though they will make you pre-qual with Countrywide on-site.
You have three inspection days to view the properties, and in San Diego they are this Saturday and next weekend. They are paying brokers a 1% commission, so if you want me to meet you at a property with comps to give you my opinion, I’d be happy to help you. I need to register you as my client before the auction, so if you’d like a hand, let me know ahead of time. If you see one you really like and want to arrange a formal inspection, I’ll introduce you to a top inspector. There is no inspection contingency period, so once you win one at the auction, it’s yours.
The properties are mostly the junk they couldn’t sell on the open market, but there might be some gems in there, plus the opening bids are less than half the previous values.
I will be attending the auction too – if you go and see me, say hello!
Posted on Friday, March 21st, 2008 at 2:34 AM in Auctions | 9 Comments » | 
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Nice description Jim.
It sounds like Real Estate Disposition Corporation (REDC) has their auction process together. To anyone considering this I’d highly recommend bringing Jim along with you. It’s true that properties will be sold at firesale prices but the auctioneers will try every trick in the book to get you to bid higher.
Also if you go don’t get sucked into the madness and stay focused on what you’re there to do.
shadash | March 21st, 2008 at 1:52 pmAt the auction I attended (NoCal) redc made rules really inconvient for buyers to work with Brokers, i.e. Broker has to be with the Buyer at all times, help sign him up, stand by him as he bids & be there with him when closes deal. I didn’t buy anything so I don’t know about their third rule, but the first two were ignored by all.
doug s. | March 21st, 2008 at 2:21 pmAs for the auction, the two places I went to bid on sold @ more than 80% of last appraised (highly inflated) value, hardly a deal.
My perception was REDC ran the auction like the last two years never happened, like r.e. is the greatest investment opportunity out there & buyers were getting the deals of a lifetime. I think there were a few very good deals but they didn’t work for me.
Unless there are houses to be had for low enough prices that it will economically feasible to bulldoze the existing structure and start again if it turns out to be an utter dog, I can’t see any advantage to buying at one of these auctions. There are more than enough REOs on the listings to provide a selection of firesale-priced houses without giving up the ability to make all the demands on sellers that come with being in a buyers’ market.
GeneK | March 21st, 2008 at 9:24 pmThere will be a point in this housing cycle where there will be steals at auctions, but we haven’t reached that point yet. Don’t worry, though, it’s coming.
greenlander | March 21st, 2008 at 11:08 pmJim,
SushiBroker | March 21st, 2008 at 11:11 pmWhat happened to this week’s radio show? Hopefully you and Kris are not just ‘one hit wonders.’
$5000 for the privilege of bidding on depreciating houses. Gee, sign me up!!
Tyrone | March 22nd, 2008 at 12:56 amJust something I saw re: these auctions. If you’re thinking of attending, read this and factor it in to your price/decision.
http://www.boston.com/news/local/articles/2008/03/22/many_high_bidders_still_waiting_for_homes/
SD_Coastal | March 22nd, 2008 at 1:37 pmIf the condition of the REO homes we saw last year that were actually MLS listed is any guide, I’d have to be able to pick something up for the price of the land minus the cost of removing the existing house to make me even think of attending an auction.
GeneK | March 22nd, 2008 at 4:27 pm@ Tyrone
They don’t take your $5000 unless you place a winning bid.
SD Scientist | March 22nd, 2008 at 11:47 pm