Real Estate Auction Rip-off?

[LuJackCity1964]

EDUCATE YOURSELVES BEFORE YOU DO ANY OF THIS!!! If you're lucky enough to be in Southern California, LET US BUY YOU LUNCH, just to share with you how we're making a KILLING by going DIRECTLY TO THE BANKS for our Real Estate Investments, 310.356.7027 or wwwdotDare2Dreamdotbiz

[DwiteTheSpriteKnight]

Why bother going to an auction if that's how it works.

[Fyeagass16]

Its Stupid

[raywhitemackaycity]

Luckily in Australia, all the terms & conditions are read out & must be placed on display prior to the Auction. So we don't have this 'escape-out clause'. This is a legislation problem ! Our Auctioneer's in Australia, arent what I would consider doddy in any way either given the amount of legislative knowledge they must know, & on-spot (unknown) checks they also undergo as well. USA - you need better Real-Estate Legislation! It's as water tight in down under !

[Nerdicusable]

@raywhitemackaycity

Yes, yes, America sucks. That's the mentality that is causing so much hate in the world. How about instead of thinking of everyone as a separate entity, i.e. "my country vs your country", just categorize everyone as a human being.

[HunterMann]

I think if I was there and had the winning bid, I'd then call out "Everyone here, you are witnesses to the auctioneer ending this auction, declaring my final bid as the winner." Then ask the auctioneer to state right then & there that I had in fact won the house auction. I think if you did a background resume check on most auction people, they had probably been swap meet sellers in the past. Don;t let the tuxedo fool you, these guys are just lowlife crooks with bow ties.

[MyAuctioneer]

I so agree that many Auction companies mislead uninformed buyer/bidders. All auctions in the U.S. are considered to be 'reserve' or with a 'minimum selling price'. An unscrupulous auctioneers will use the terms 'No Minimum Opening Bid' to mislead the buyer... the opening bid and the 'reserver' are two different terms. I'd suggest that buyer only attend auctions that state "ABSOLUTE AUCTION" - will sell to the highest bidder regardless of price. Don't waste your time - report to attorney general

[LordBwithU]

No kidding Dumbasses! You have no business bidding if you didn't read the fine print. There is a difference between an Auction and an Absolute auction!

[auctioneer1366]

@LordBwithU This is true!!! Please be sure to make sure that the auction is advertised as ABSOLUTE or not.

[auctionsnow]

All Earnest Money Deposits are held in a Trust Account which REDC does not have access to unless a closing takes place. The delay in the return of funds is a function of the trust company being used.

REDC was in the process of notifying you and the other unsuccessful clients that your bid was not approved by the seller so we apologize if this information did not reach you in a timely manner. Assets are immediately placed back up for auction as soon as the seller declines the offer.

[akivjen]

A scam is right...I had the winning bid and a week and a half later was informed I did'nt meet the reserve...A real auction tells you on the SPOT if you met reserve...NOT take your thousands for deposit and waste hours filling out needless paperwork. Not to mention the time/hastle and money lost juggling funds together to make my final payment. REDC is a SCAM!!!

[auctioneer1366]

@akivjen This is true in your instance. The auctioneer should have told you at the time of sale. He should NOT have taken your money as a deposit! This kind of action is the very thing that gives us other auctioneers a bad name. I hope that you don't let this get you down from buying at auction., Auctioneers are supposed to give an opening statement at time of beginning the auction, as well as a reputable auctioneer will be on top of his game and know before the gavel falls if it can sell.

[tatealex]

The so called "auction" is a scam on grand scale. I paid $9843.75 earnest money,the checks promptly cashed. 8 days later I surf the REDC's and notice that the property is up for auction again. Nobody informed me. but the earnest money 10k check was promptly cashed.Also they lie about the previous value of the properties. In my case it was stated previously valued to $690K. ; after checking the records in the same development for the peak period 2005-2007 the highest sale was for 450K.

[hx256]

This story is VERY misleading.

[hellomynameisjes]

There is a 5% premium that is place on top of the property purchase price. The 5% is used to cover advertising, rental of hall, convention center, etc. etc.

The banks or private investers have a reserve price on the property.

The sellers should have representatives at the auction. Which you can negotiate with if your bid was turned down. It's always good to have a Realtor® go with the buyer. Before you go to an auction have a Realtor® do a comp to see what the property is worth.

[3swelldogs3]

you always have to check for anything else going on with the house...you don't always get what you want.

[rodeosound]

There is no "RIP OFF" in this story. they should not have it in the title. Auction is a fast paced EXTREME way to buy and sell,,everyone especially buyers should do their homework on each property ahead of time. dont blame the auction indusrty cause you dont understand it. on auction day be ready for things to move fast..

[colshawn]

when they talk about "rip off" there is a right way and a wrong way to conduct open forum sales. I have been in the auction business most of my professional life and the correct way to conduct these auctions is to announce that the property is selling subject to SELLER CONFIRMATION versus putting it in very fine print inside of a multi-page legal document. Just because something can be viewed as legal does not make it ethical. Keep in mind i make my living in the auction business and love it.

[sphinxrising58]

Not mislead if they read the fine print. We had some guy locally rty to bid 16.5K on a property that was appraised at over 100K so naturally, they turned his bid down flat even though he was the only one that did bid.

You are not going to get something for almost nothing, and expecting you will is unrealistic.