Super-sized auction hits UK
When something starts in America, it usually trickles across the pond to us here in Blighty sooner or later - the latest US fad to reach the UK is the super-sized auction selling nothing but repossessed properties - up to 500 at a time - which is getting bargain hunters on both sides of the Atlantic a little hot under the collar...
America's largest auction house, Real Estate Disposition Corporation (REDC) is gearing up for a series of huge repossession auctions in the UK after having massive success with the concept in the US.
Back on the 7th March, adverts were launched in UK national newspapers to publicise the auctions.
Estate agent Keith Hollinrake, formerly a director of Hunters in the north and now a property consultant, is advising REDC and has been keeping track of the consumer response to the advertising of the UK auctions.
The American auction giant asked him to find out whether the concept would transfer from US foreclosure to UK repossession. So far, he says, the response from consumers has been ‘phenomenal.'
Up to 1,000 people are expected to be battling it out for 500 repossessed lots at the first UK auction, which is being held at the end of March.
The five-day sale opens in Newcastle on March 31st before going to Leeds, Birmingham, Manchester and London on the next four consecutive days.
The layout of the auction is being changed slightly to appeal to UK audiences, including the removal of the bell that sounds when a property is sold at an American auction.
REDC auctions also have no starting prices on their properties and catalogues are free. There will also be mortgage broking facility on-site at each sale.
But, there is a catch. (Sigh). Successful bidders must hand over a whopping 10 per cent buyer's fee to the auction company, as opposed to around two per cent which is more standard here in the UK.
To date, most of the properties that have been sold at these auctions in the US have gone to owner occupiers rather than property investors.
"REDC sales have the potential to revolutionise UK auctions," says Mr Hollinrake.