Friday, Apr 24, 2009
Grab Yourself a Bargain.....
REDC: UNITED KINGDOM - Online Only Auction Bid NOW
Is this what we've been waiting for, or is there better yet to come?
Posted by yoyo1 @ 09:29 AM (1517 views) Add Comment
28 Comments
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1. Dan said...
Ive been keeping my eye on these.
Frankly, most are pretty grotty, but there are some decent ones.
If most go for 50% reductions, then Estate Agents better wipe half the value of all their properties overnight, or just board up the shop and go stack shelves.
2. Dandare said...
Ignore the 'Reserve Not Met Comments' completely.
REDC wait until the end of the auction, then approach the bank or whoever owns the property, with the best offer.
In Effect there is no 'Reserve' on these properties.
Seems Auction houses, on orders from the Bank, are Drip Feeding repossessions through auctions, in an attempt top avoide a firesale, so as to bring house prices down slowly, and try to 'engineer' a bottom.
The Banks, Estate Agents, Builders, Surveyors, Labour Government, are desperate for FTBers to get into the market.
Just playing the waiting game now until they CRASH all the way back down to 1999 prices. :0)
3. This comment has been removed as it was found to be in breach of our Blog Policies.
4. inbreda said...
They quite really high "previously valued at" prices which makes me suspect that the reserve prices are high - which would explain why all of them are "not yet met reserve". I doubt if any of them will hit reserve, and I doubt if any will sell, and I doubt if this company will exist in a few months time.
I do however like the "previously" in the statement "previously valued at". Psychologically I think it will have a wonderful effect.
5. 51ck-6-51x said...
I saw one with a current at £60,001 which had hit the reserve. In Newcastle, I think. Let me check...
6. 51ck-6-51x said...
reserve met on:
#44: Newcastle
#290: Liverpool
#350: St Helens
7. doom&gloom said...
It appears that their prices start at one increment below the reserve, so a single bid will achieve reserve price. Very little will sell until the site starts getting a large number of buyers.
8. montesquieu said...
Only one I looked at was a shi*tty little two-bed ex council place in an old mining village in Lanarkshire. Last sold 2004 for £24k, 'previously valued' at £75k (they can't be serious), one bid but not made reserve at £27k.
Anyone who buys at these prices deserves their head examined. This one might make a decent crack house.
9. 51ck-6-51x said...
D&G - how did you figure that out? There are plenty of properties that have been bid but are not above reserve (click on bidding history of #3 for an example - it has had three bids)
10. will said...
Only 200 houses. Public lender Auction ?
11. jack c said...
You wouldnt want some of the properties advertised based upon location alone even if you picked them up for free ! (local knowledge is invaluable) - residential property isnt always an asset it is sometimes a liability and believe me anyone moving into some of these properties people will soon find they've made a big and expensive mistake !
12. Dan said...
At the REDC Auction in Leeds, on 1st April, if someone bid on a property, but the bid did not met the undiscolsed reserve, the Auctioneer, took the bidders into a side room, and informed them that REDC would still present that offer to the vendor.
Some of those offers are still being considered. Others have been accepted.
Im sure REDC will follow exactly the same procedure with the online auction.
So, the Reserve Not Met comment is pretty irrelevant. The houses are only worth what someone will pay for them.
You can still 'win' the auction and buy the house, even if you do not meet the reserve.
Before the auctions took place REDC informed the bidders that they would publish the sold prices on their website.
However, after the auctions, they changed their minds. I dont know why.
But it would be interesting to see how far below the reserve, the sold prices were, when they are published by the Land Registry.
13. This comment has been removed as it was found to be in breach of our Blog Policies.
14. 51ck-6-51x said...
jack c - you are right they are mostly in relatively nasty areas, but that is likely given the source.
15. techieman said...
I went along to the one in London in early April - bloody Sunday morning at 10am (I must have been keen!) . I actually took a look at it first, really just out of interest. Actually it was quite a slick operation i thought. The first property was in Bucks and was previously valued at around 380 i think and went for 230. The one i saw was previously valued to 185 and went for 125. Of course you dont know for sure when they were previously valued etc, without some work.
As for the property i actually vistied - these people are a bit dim - they put iron burn wholes on all the carpets which would have lowered the price, which would mean that the amount they would have to pay would still owe would go up etc etc. I suppose they are either filing for bankruptcy anyway or dont know what repossession really means and have just had enough. Dont know whether to feel sorry for them really!
16. techieman said...
no dimmer than someone that spells holes as "wholes" i suppose!
17. techieman said...
Dan @ 12- Before the auctions took place REDC informed the bidders that they would publish the sold prices on their website.
However, after the auctions, they changed their minds. I dont know why.
I dont think thats right - i looked at the FAQs and in that they said they wouldnt be published before the auction. Had they said they were then i wouldnt have bothered to go along to be honest. I was just wondering what kind of discount is being offered at the moment from whatever the "prior value" was. I think you can see the Land Reg document - i.e. what the repossessed purchaser paid, on the website under details for each property.
18. inbreda said...
Just a thought - but if the majority of repos last crash were due to lack of affordability because of high interest rates, but this time it is (currently, presumably) because of BTL empires going t1ts up and redundancies - won't that mean that reserves might be lower? If a BTLer hands in the keys the bank has less requirement to worry about repo as there is less of a social impact. They will sell for low reserve on teh basis that the BTLer still owes the difference. They won't be able to be so crass with owner occupiers, but many of these will be indefault due to redundancy and may actually have a lot of "equity" in the property. i.e. someone may be 20 years through their mortgage, made redundant, and still default. The bank only cares about getting back the money it is owed and can acheive as much by selling the property at much less than it's "worth".
When interest rates inevitably sky-rocket, that will prevent most buyers from offering high sums, and the equation is complete.
19. Dan said...
17 Techie. Have you misread my comment at 12?
I wrote@12: Before the auctions took place, REDC informed the bidders, that they would publish the SOLD prices, on their website.
[Obviously SOLD prices could only be published AFTER the auction ended.]
You wrote@17: "i looked at the FAQs and in that they said they wouldnt be published before the auction. Had they said they were then i wouldnt have bothered to go along to be honest."
when you say, 'they said they wouldnt be published before the aution'
Do you mean, that you read, in the FAQ's on REDC website that the UNDISCLOSED RESERVE wouldnt be published before the start of the auction?
Thats correct.
But REDC most definitely told their own staff that they would publish the SOLD prices of Properties, at the end of the auctions, on their website, next to the photos of the properties. [I know this, because two members of REDC staff told me this on seperate occasions.
They said they would be printing the SOLD prices of the properties on their website, after they were SOLD.
They informed me of this, in Mid March.]
After the auctions ended, and the SOLD prices were not visible on their website, I contacted REDC again, and they told me that they had changed their minds, and decided not to publish the SOLD prices on their website after all.
They changed their minds. [Probably because they were asked to!]
The point I was making was that:
Some of the properties which were under the hammer at the Auctions, did not meet the reserve price.
However, the auctioneers still put forward the highest bidders, offer to the vendor. Some of which were accepted.
We will have to wait until the Land Registry publish those figures to see how far below the reserve prices they were actually sold for.
20. Dan said...
17. Techie. After Re-reading your post I see what you mean! [Sorry I read it ambigiously]
To answer, I was told on two seperate occasions by REDC staff, [ in Mid March,] that they had been told, [by their own managers I presume] that the SOLD figures would be published.
I do not know when, or why they changed this policy.
I contacted REDC again in April, and they told me that they would not be publishing them.
21. Dan said...
#4 Inbreda.
With many of the properties, that went to REDC auction on 01st April, the Estate Agents listed the highest ever valuation of the properties, and not the most recent valuations.
For Instance, one of the properties that went under the hammer stated: Previously Valued to £205k.
But just by googling the Address, I found a .PDF [with the most recent valuation] on the estate agents website, of the same property listed for £165k!
I actually wrote a complaint to REDC, [and trading standards] , as it seemed unfair that EA were not showing the most recent valuations, [I cited the 1967 misrepresentation act, and the 1979 Estate Agents act.]
22. little professor said...
85 Kielder Road, Newcastle - last sold 2006 for £113k, reserve met at £60k
9 Freckleton Drive, Liverpool - last sold 2006 for £89k, reserve met at £50k
REDC is essentially a "last resort" auctioneer - most of these properties will have gone through conventional auctions and failed to attract a bid. So I would be surprised if they stick to their reserve system - essentially it's "Everything Must Go."
23. Gb12 said...
Call me cynical, but the usernames of the bidders look made-up, Alyvia, Makena, Graciela, Chardonnay (OK I made up the last one but you get my point?) REDC make no bones about using shill bidders so perhaps we shouldn't be too surprised
24. yoyo1 said...
re: prices. If anyone is interested, lot 206 (which is one of the better properties) didn't achieve a sale previously at 120K. I think the banks need to lower their reserve/expectations, buyers are very cautious.
25. mander said...
Is this going to be the new rightmove.co.uk ? Hopfully not as it looks creepy but it is wise to let house get close the 3.5 income ratio and only then banks to lend again to creditworty people.
26. gone-to-colombia said...
Strange, these properties seem to be thinly and evenly spread over the country. Could it be that the market is being tested by the Banks?
27. Peeping Tom said...
Of the three Coventry properties, lot 198, 19 Chelveston Road CV6 is quite a decent residential area. The reserve price of £75k is roughly 2001 prices, so I think that the offer of £72.5k is quite reasonable for a cash purchase.
28. Alaninstockport said...
26 gone-to-columbia ... I suspect that you've hit the nail on the head with that conclusion... could well be a bit of Treasury "Stress Testing". After all, most of the UK banks are in state hands ...