In the News: City of New Orleans Holding Online Auction for Tax-Adjudicated Properties
Online auction history is in the makings, as New Orleans prepares an online auction for nearly 1,800 tax “delinquent” properties across the city. This unprecedented decision is equally surrounded with hope and anxiety for both buyers and sellers.
The New Orleans Redevelopment Authority (NORA), along with the city’s government, is hoping to bring people back to the region after an estimated 200,000 residents vacated their homes following Hurricanes Katrina and Rita, according to Bloomberg.com. While the risk does linger that previous owners return to appeal the sale of their land, it is hard to know, or even guess, the likelihood of that happening for nearly 2,000 abandoned properties. Proof of payment requests and notifications are made available for interested buyers on CivicSource, the property auction website. The online auction isn’t the first time these properties have been available for purchase, all of these properties were offered for sale within the city and did not attract any buyers.
The beauty – and genius – of holding this auction online is the audience reach. While you may not be visiting the properties, Google Street View has been utilized to see the properties, homes, or empty lots. Unlike other online auctions, the participation deposit ($650) is refunded to those that do not have the winning bid. Winners will legally own the property and will not incur any of the previous penalties of fines or repossession.
The outcome of this auction could set the stage for the future of large-scale online auctions and the way we approach other revitalization efforts.