Registration is now open for the first Wayne County Treasurer's Auction of Tax-Foreclosed Properties
of 2014. Interested bidders must register before 4:30 p.m. on June 18 to join the auction. Returning bidders must re-register for the online property auction, which will be held June 20 through June 26. 557 properties are available in the June auction.
Wayne County added the June auction to the usual auctions held in September and October as it seeks to clear the 20,000 to 25,000 properties in its inventory. The June auction features properties that are returning properties, or those that were sold through the auction at least once before but were foreclosed again and returned to the county.
For Dave Szymanski, chief deputy of the Wayne County Treasurer office, the June auction is an opportunity to work on a system he finds flawed. With 20,000 to 25,000 properties available in the fall auctions and only 557 in June, a smaller auction allows the county to better analyze data and move forward with any necessary changes. Data analysis may suggest that some properties would be better off being bundled together, for example. The county could also determine that some buildings are better off demolished than offered at all.
Another tactic the office will try is holding sealed-envelope auctions, says Szymanski. In a sealed-envelope auction, bidders submit their highest offer without being aware of any competing bids. During the June auction, one in four properties will be available through sealed bids.
"I've read doctoral theses determining that sealed-bid auctions are not likely to get any less money than open-bid auctions," says Szymanski. "And they often get more."
Getting more per property should weed out bidders who win properties on minimum bids only to let them sit and eventually be foreclosed on once again, the reasoning goes.
Source: Dave Szymanski, Cheif Deputy of the Office of the Wayne County Treasurer
Writer: MJ Galbraith
Got a development news story to share? Email MJ Galbraith here.