Back in September, I attended the first REDC Portland real estate auction out at the Portland Airport Sheraton. The group is returning for a second auction on February 8th. At the first auction, properties sold for an average of 44% of the “previously valued at” price. I do not know what percentage of the winning bidders closed on their transaction.
Purchasing property through an auction is the same as but different from purchasing property through a “conventional” sale. Buyers are encouraged to inspect the property prior to the auction as there is no inspection contingency in escrow. Many properties are cash only and cannot be financed. Each auction house handles paperwork and documents differently- there may be paperwork that you are required to sign with a winning bid that is outside the scope of a “conventional” real estate transaction. The paperwork is usually available beforehand so it can be reviewed and an attorney consulted if needed. REDC has a FAQ sheet that explains their process.
You have to be registered to participate in the auction prior to the event. Don’t just show up the day of planning to bid. REDC has an simultaneous online auction which runs almost seamlessly with the live auction.