Orlando Real Estate Blog

A few months back I reported on some horrible auction experiences.  Of late we have been attending several auctions…some better then others.  The one I see to be the best at the moment and has the most professional setup is REDC which specializes in bank owned aka REO properties.  I have attened several auctions to date held by REDC, with my clients, and we have bought3 properties.  All proved to be good deals…  However, we had been the highest bidder on several occasions only to have the bank refuse our winning bid…all of the properties have a “reserve bid” amount that is the lowest the bank will take, unfortunately they do not share that amount with you until they tell you it has not been met with your bid.

Before you go…do your homework, and have me attend with you, it doesn’t cost you a penny and you get my services.  Many times I have seen properties bid up to prices above what the property is currently listed for. I saw one sell for $50K that was listed for $40k…yikes!  Why would you pay more then the bank has it listed for in the MLS….plus REDC charges a 5% premium on top of that.   Keep in mind that the banks I have done deals with recently, and it has been about 12 in the last three month, have always taken less then the list price.  DO NOT PAY MORE THEN THE PROPERTY IS LISTED FOR!!! That is just crazy and shows you how a fool and their money are surely parted.

Still our favorite way to approach bank owned properties is via the MLS and traditional methods.  We have an inspection period (Which is not granted in an Auction Property) and you don’t have a room of people bidding against you for the same property.  I guess people are competitive by nature and when you want some thing, you want it and will pay a little more to get it even if it is not the best financial decision.

So go to the auction, buy something…the timing could’t be better, but be sure to do your homework on the properites and do not pay more then the property is listed for.