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I recall a while back REDC auctions coming over from the US with a big fanfare. "Massive" deals to be done at great prices. Roll up roll up etc etc. They got a fair amount of press - some positive some not so. I think they also had some sort of buyers fee (10%!) which didn't sit very well.

I know that there was a fair amount of interest and a few topics posted at the time but I've heard little since.

Today I received an email from them advertising their next auctions but when I click through it goes to a Zoopla page.

Has anyone had any dealings with them over the last year or so? Are they still trading?

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I recall a while back REDC auctions coming over from the US with a big fanfare. "Massive" deals to be done at great prices. Roll up roll up etc etc. They got a fair amount of press - some positive some not so. I think they also had some sort of buyers fee (10%!) which didn't sit very well.

I know that there was a fair amount of interest and a few topics posted at the time but I've heard little since.

Today I received an email from them advertising their next auctions but when I click through it goes to a Zoopla page.

Has anyone had any dealings with them over the last year or so? Are they still trading?

I should imagine they hoped to take advantage of the wave of repossessions that "should have happened" after 2007/8 and the plans were scuppered when the banks didn't repossess many and the government started paying everyones mortgages.

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I recall a while back REDC auctions coming over from the US with a big fanfare. "Massive" deals to be done at great prices. Roll up roll up etc etc. They got a fair amount of press - some positive some not so. I think they also had some sort of buyers fee (10%!) which didn't sit very well.

I know that there was a fair amount of interest and a few topics posted at the time but I've heard little since.

Today I received an email from them advertising their next auctions but when I click through it goes to a Zoopla page.

Has anyone had any dealings with them over the last year or so? Are they still trading?

Never had dealings personally. They are considered sharks, as far as I could tell.

Their online auctions worked very much like Ebay.

The overall trend last time they had an online auction, was:

Most bidders did not bid any higher than 50% off the most recent estate Agents valuation.

[And a fair number were sold for 50% off the estate agents valuation. Which is pretty strong evidence as to where house prices are going. .....]

The undisclosed reserve on a lot of the properties was roughly 50% off the peak valuation [!]

I tracked one property for a number of months. A repossession, owned by a bank. A nice detached house. Which never received a bid higher than 68% off its peak valuation.

This property did not meet the undisclosed reserve.

[Although I do not know of a more accurate method of discovering what a house is actually worth, than what someone is prepared to pay for it at auction]

The property was then put back into auction a number of times. Through REDC, and other auction houses. It didnt sell.

[i.E. The bank didnt have to sell it, being taxpayer funded!!!]

So I assume its still sitting hidden on the balance sheet of some state owned bank as toxic mortgage debt.

[so much for Basel regs]

REDC wait until the auction has ended, and then approach the owner/bank/seller of the repossessed property and submit the highest bid as an offer.

1.1 The purchase price for each lot shall be equal to the high bid plus a buyers premium. The

buyers premium is equal to ten percent (10%) of the high bid amount plus VAT.

[As such, if the high bid is equal to £100,000, then the purchase price shall be £111,500, which is the £100,000

high bid plus £10,000 (buyers premium of 10% of the high bid) plus £1,500 VAT on the buyers

premium.]

Which begs the question why pay 10% + VAT to REDC UK for an introduction, when you can go to the local estate agent or another

auction, who do not charge 10% and buy it there?

3.4 These are reserve auctions and as such all the lots will be offered for sale subject to a reserve

price which will not be disclosed. The auctioneer may bid on behalf of the seller up to the

reserve price but may not make a bid equal to or exceeding the reserve price. This holds true for

both online and live auctions.

I also believe it to be perfectly legal in the UK, for an auctioneer to 'make up bids' and bid against you.

Which I suspect could happen in their online auctions as well.......

Edited by Dan1

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  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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