The Americans are here. Huge American property auction company, the Real Estate Disposition Company, specialising in sales of foreclosed and distressed properties has announced the dates for its first wave of 5 auctions beginning March 31st at the Hilton Newcastle Gateshead Hotel.
The company’s ferocious and rapid convergence on the UK property market has caused quite a stir, but not quite as much as the fact it charges a 10% buyer’s fee, and that first time buyers have had their offers rejected because REDC auctions now present an opportunity to perhaps get a better price.
In statements released to the press, REDC CEO and co-founder Jeffrey Frieden said:
“When a house is vacant, everyone loses,” he says. “When we put a family into a home, they’re paying a mortgage & utilities etc., and breathing the life back into the property – all of which helps the economy. A home that remains vacant has the opposite effect.
“REDC has turned tens of thousands of bank repossessed houses across America back into homes,” Frieden adds. “As a property auction company, our mission is to bring sellers together with home buyers and a range of investors. Only an auction can determine the true market values of these properties.”
The comparative size of the UK to the US and the hype surrounding REDC entry has generated presents the potential situation that their auctions may become the only place to buy repossessed properties in the UK.
