My opinions of the whole REDC Auction experience-
I tracked all of the auction selling prices and compared those numbers to what the properties were listed for on the MLS prior to the REDC Auction.
Looks like the average overall difference between the MLS price and final auction selling prices was a difference of 39% for the 30+ properties sold at the REDC Aution in Reno, NV. I think you need to take into account these properties are at the REDC Auction because they were listed too high on the MLS and the lenders were not willing to go lower at that time so the MLS number was inflated. I am willing to bet most properties were listed on the MLS at least 20-30% too high and that is why they did not sell. If the lenders had lowered the MLS listing 20-30% they probably would have sold the properties and not had to go through the auction process. Or, had they accepted "low ball" offers that came in at this reduced price range they would have moved the unit.

So, take off 25-30% from our average auction savings of 39% and you really only end up potentially saving 10-15%. Now, I have not factored in buyers premium that goes to REDC for their services so in the end you probably save less than 10% buying through the REDC Auction.

Another problem with this type of home purchasing is you are competing against amateur investors who believe they are getting the best deal possible. When the auction creates bidding wars the investors do not win... the bank does. I watched many, many "investors" go up in price because the Auctioneer applied pressure to the situation. Great when you are at an auction that benefits charities not so great when you are making an investment purchase that benefits banks.

In the end it was a great experience and I recommend you go to a REDC Auction next time they are in your area. Keep in mind you really need to do your homework and create stops so you do not end up buying something because you got caught up in the action.

More Blogs on REDC Auction
REDC Results and My Opinions
Day of REDC Auction in Reno
Days Leading to REDC Auction
REDC Foreclosure Auction