REDC auction event December 7th at Westin Seattle (loans, houses)

[irrational exuberance]

Its been a while since I have been on here but I am still closely following the housing market primarily in pierce county. I know everyone has been seeing the commercials talking about REDC auction in downtown Seattle on December 7th, last Sunday. I haven't seen anyone write about it yet. My wife and I did some research on the overall event because if you read the terms and conditions all the buyers protections and contingencies are wiped away, just as indicated by other bloggers all around the country, but we are ones to observe for ourselves. We wrote down all the final bid prices, calculated the final price after all fees and conditions and calculated the discounted percentage.

Now hindsight being 20/20 none of the houses listed for Pierce county closed for anywhere near the hidden reserve price that was later disclosed. Not all houses were disclosed however only the lots no one wanted. Matter of fact, some of the houses only had one bid on them and only went to the final amount because it was bid up by the auctioneer. Which, according to RCW 18.11.240 section (3) is illegal in Washington state. They disclose something to the effect of Except where prohibited, Auctioneer may place bids on behalf of the seller..... but if no one knows its illegal and reports them nothing will happen and them being a traveling company it would probably be a waste of time unless you got mislead and cheated on a deal.

But anyhow I wanted to hear some of the stories if anyone got any of the deals they bid on. The whole $2500.00 cashier checked signed over to REDC before you got into closing then all other funds paid by personal check was suspect to me. All REDC seemed to care about is getting their money free and clear. No real way to stop payment of a cashier check you signed over to someone. The internet stories are people get sucked in since they have already given $8000+ they stand to lose if they walk away only to get there offers rejected and countered back at $40k+. After all in the terms and conditions it says any offer under the hidden reserve price is subject to approval by seller and they can walk away free and clear but you as the buyer lose your money if you get self righteous all of the sudden.

Has anyone got confirmation/acceptance from the seller that they will closing on a winning bid yet?

Let me know if you want to see the results I have.

[Orkneyis]

According to you comments, it is really intimdating, especially the phase about the "because it was bid up by the auctioneer. Is this real ?Now hindsight being 20/20 none of the houses listed for Pierce county closed for anywhere near the hidden reserve price that was later disclosed. Not all houses were disclosed however only the lots no one wanted. Matter of fact, some of the houses only had one bid on them and only went to the final amount because it was bid up by the auctioneer. Which, according to RCW 18.11.240 section (3) is illegal in Washington state. They disclose something to the effect of Except where prohibited, Auctioneer may place bids on behalf of the seller..... but if no one knows its illegal and reports them nothing will happen and them being a traveling company it would probably be a waste of time unless you got mislead and cheated on a deal.

[irrational exuberance]

Orkneyis,

I kid you not! Interestingly is when you google REDC auctions are a waste of time you get those stories that went almost in perfect sequence of what my wife and I observed. Little by little all the houses are trickling quietly back on the market for their original prices? I guess after lying and misleading people for so long the builders start to drink their own kool aid and believe their own lies about phantom buyers out their so you better buy now or miss out on a good deal forever. We are finding that waiting will yield even better real deals than the fake ones at the auction but time will tell.

[Ira500]

Waiting is a good idea. I think prices will continue to drop.

[allforcats]

Seems to me too that waiting is a good idea. The country still hasn't even begun to deal with the Alt-A and Option ARM loans whose deadlines are coming up next year...