The REDC auction is coming to town again. This is the same auction event I reported on in January’s Huge Foreclosure Auction Event post. At January’s auction approximately 350 bank-owned properties throughout Nevada (mainly in Clark and Washoe counties) were auctioned.
This time around the REDC has over 800 bank-owned houses in Nevada to auction. So many properties to sell, in fact, that they’ve schedule three dates, with the properties separated according to region. The dates and links are:
- Saturday, April 11th – Southern Las Vegas Area
- Monday, April 13th – Northern Las Vegas Area
- Tuesday, April 14th – Reno Area
The geographical separation of the properties on different dates will work much nicer. At the January even, sitting through 350 properties made for a very long day.
The “Reno Area” auction currently has 103 properties listed, but just as with the last auction new properties will be added as the auction date approaches.
Now before some of you start talking about the auction being a waste of time because of the bank reserves, let me remind you that out of the ~350 properties auctioned at the February event, only ~100 had the high bids rejected by the bank. So, 250 buyers walked away with properties at a fire sale prices; incidentally, one of my clients was included in that group of happy buyers.
So, if you’re interested in purchasing a property at the Reno event, but feel like you’d like assistance with the process, give me a call at 775.722.4011. I’ll assist you with the registration process and make sure you have the required docs (cashiers check, loan pre-approval, etc) necessary to bid. I’ll also pull comparable sales to the properties in which you are interested and assist in determine a bidding threshold. And then we’ll attend the auction together and bid on your properties.
randomwalk
Interesting that the detached house in The Village that sold for $168k at the last auction (“This Morning’s Somersett Auction “) actually closed at that price. At least if that’s what it means when the Washoe Assessor’s website lists it as such. It’s just down the street from my house; no ones moved in yet.
I think 75 cents/sq ft is a pretty good deal for that house. I will probably buy one if another comes to auction. Double down on my previous stupid bet!
Martin
75 cents a sq. ft.? Uh, yea, sign me up for a 100 of these places.
Raymond
I think Mr. randomwalk must have meant $75 a sq. ft. Still not a bad deal. This is the place that sold at auction for 65% off of original sales price, no?
Guy Johnson
A reader wrote me off blog asking me to describe the auction process in a little more detail. He also suggested I respond via the comments so that all could share the knowledge. Great idea!
Firstly, I’d like to point out that this particular auction house has a very nice FAQ page on their site. You can find it here: http://www.auction.com/faqs.php
Additionally, the site has a link to the “Terms and Conditions” which provide additional information on the auction process. The T&C’s can be found here:
https://www.mlhdocs.com/auctions/auctions253/253-pav-general-terms.pdf
Together these two links will probably answer any question you have. Below are answers to some of the more frequent questions I have received regarding the auctin process: [note: these questions and answers are taken directly from the links above.]
Q. Because these properties were foreclosed on, are there any liens on the property?
Ans. No! The sellers provide insurable title to the properties sold at auction. You will receive a standard “Title Policy” as part of your transaction. Please review the purchase agreement for further details.
Q. Who owns the properties that are being offered at the auction?
Ans. These properties are all acquired by lenders through the foreclosure, sheriff’s sale or deed in lieu of foreclosure process and are now being liquidated. The lender’s don’t want these homes on their books and have ordered them to be sold
Q. Is there a reserve price?
Ans. Yes. All Properties have a Reserve Price, meaning the Seller of each Property has established an unpublished, minimum selling price. The starting bid is not the Reserve Price. In order to become the Winning Bidder for a Property, a Bidder must meet or exceed the Reserve Price and have the highest bid.
Q. What do we need to bring if we are paying for the property in cash?
Ans. On auction day, you will need the 5% Earnest Money Deposit (15% for each additional property purchased) plus proof of the ability to obtain the cash within 30 days. Documents of proof include 30 days of paycheck stubs, a recent bank statement or mutual fund statement or IRA statements…wherever the funds are coming from. Also a current government-issued photo ID for title.
Q. What is the Earnest Money Deposit?
Ans. The Earnest Money Deposit is the amount of money you are required to put down on auction day. On auction day, you must deposit with the escrow/closing agent an Earnest Money Deposit equal to 5% of the Total Purchase Price (15% for each additional property purchased), regardless of the amount you finance. This is not the financing deposit or down payment, but rather the amount required as Earnest Money on auction day.For example, if the Total Purchase Price is $210,000 (the Winning Bid Amount PLUS the Buyer’s Premium), then the Earnest Money Deposit required on auction day is $10,500 ($210,000 x 5% = $10,500).
Q. How can I pay the Earnest Money Deposit?
Ans. The first $5,000 of the Earnest Money Deposit must be paid by cashier’s check or cash. A $10,000 cashier’s check is needed to purchase each additional property. The remaining balance can be paid by personal check or by cash. You will be provided with a receipt on auction day showing that the escrow/closing agent received your Earnest Money Deposit. There are no exceptions to this requirement.
Q. Can I conduct inspections after the auction?
Ans. No. All inspections must be completed prior to the auction event. For each auction we event there will be published select open house viewing dates for you to view the properties. The properties will not be open for walkthroughs or inspections after the auction.
Q. What if I have a real estate agent or broker?
Ans. REDC welcomes broker participation! A one percent (1%) commission, based on the Winning Bid Amount, will be paid by REDC to Registered Brokers/Agents whose client(s) successfully purchase a property and close escrow. To qualify, make sure your broker or agent completes the 3 following steps:
1. Pre-Register with REDC as a “Registered Broker” at least 24 hours prior to the Auction Day. To go directly to Broker Registration, click here: https://www.auction.com/broker-registration.php
2. Check in with their client(s) at the Broker Check-In on Auction Day.
3. Escort their client(s) as Winning Bidder to the contract area to sign docs.
Hope this helps. If you have additional questions email me or give me a call 775.722.4011.
3niner
Thanks for the additional info, Guy.
It looks complicated, but I expect the best way to deal with that is to attend the auction with you.
🙂
Guy Johnson
3niner, it’s not as complicated as it may seem. But if you, or someone you know, wants me to represent them, just give me a call. 775.722.4011.
Thanks.