not sure peter qualified his auction contention, other than to say it
shouldn't be "rigged" and there should be enough bidders. reputable
real estate appraisers in this area don't use auction sales as a guide
or comparable sale in determining fair market value. typically, real
estate auctions here are forced events... foreclosures & liquidations.
purchasers are motivated to attend and to bid by the "get it cheap"
mindset. frequently, banks buy at auction for amount owed on the
mortgage payoff, not the fmv if listed on the open market. the ad
valorem property tax base here would go to hell in a handbasket if the
auction bids determined real estate values. no responsible government
would allow that to happen. g

jeff

Ken Fortenberry wrote:

Apples and oranges. There is a difference between a "vanity" auction
fundraising event where the proceeds go to charity and a hardnosed,
strictly business auction. In Illinois when you buy a property at
auction the value of that property for tax purposes is set to exactly
the auction price by law.