They are the undisputed leader for real estate auctions and especially with their "online only" auctions. I haven't found any other company that comes close to the volume of sales they do.
REDC is still selling primarily bank owned real estate but I've noticed 3 new variations show up in the last couple of months.
- Short sales
- They now have auctions for properties where the lender is willing to
take a "short" on the amount owed in order to avoid foreclosing. This
is a great use of an auction and something our customers have done for a
while. However, the short sale process can take a while and that
increases the chance that buyer won't wait around to close.
- Still Occupied
- I've also noticed auctions for properties where they are "occupied"
and that it will be the buyer's responsibility for evicting the owner.
So, not only is the buyer prevented from seeing the property before they
bid, they have the fun job of getting the owner out after they buy it.
I've talked to a few investors about this, and not one of them was
interested in bidding on something like that. I'm surprised that they
are finding any buyers for these.
- Luxuy homes - I've also seen a few press releases anouncing the successful sale of multi-million dollar homes through REDC online only auctions. This proves once again that auctions are not just for distressed properties.