Are you following the new Auction from NORA?
A client of mine bought a HUD foreclosure a while back. Cash deal, no inspection contingency, because HUD properties don’t allow one. The offer had to go in blind.
The utilities were off. No power, no water. Which meant we couldn’t run the plumbing to check for a broken line somewhere in the yard or under the slab. We didn’t know until after closing whether the pipes were intact. She was buying the house as it existed on paper, not as she could verify it in person.
It worked out for her. The price reflected the risk, and the property didn’t come with any surprises worse than what she’d already priced in. But I want to be clear about why it worked out. It wasn’t luck. She went in with cash reserves beyond the purchase price, she understood she was pricing an unknown, and she was emotionally and financially prepared for the worst-case repair scenario before she ever signed. That’s the difference between a good auction outcome and a bad one. Preparation, not chance.
I bring this up because NORA just opened registration for its next property auction, and the mechanics are similar enough that her story is a useful preview.
If your plan involves getting a loan approved once you’ve got a signed contract, this auction isn’t structured for you.
NORA (the New Orleans Redevelopment Authority) has more than 140 properties going up for online auction this month. Over 100 are residential lots, 40 are Non-Housing Development Option lots. Everything sells as-is, where-is. Minimum bid is $4,000.
The schedule: a buyer’s seminar September 17 at 6pm at Dryades YMCA, online bidding opens September 29 at 8am, and closes the next day sometime between noon and 6pm.
Registration is separate from the seminar and closes Monday, September 28 at 3pm CT through Tranzon, the third-party auctioneer running the sale on NORA’s behalf.
Winning bidders have 30 days to close and 18 months after that to complete development. There’s a buyer’s seminar for a reason. Go if you’re bidding.
Here’s the part that mirrors my client’s experience directly. NORA does not allow financing contingencies. You need funding secured before you bid, not after you win. If your plan involves getting a loan approved once you’ve got a signed contract, this auction isn’t structured for you. That includes your deposit. Registration requires putting down $4,000 per lot before you’re even approved to bid, and it’s cumulative. Two lots means $8,000 committed up front. Wire transfer, cashier’s check, money order, certified funds, or credit card all work. Personal and business checks don’t.
A few things worth sitting with before you register:
The minimum bid is not the real number. Between closing costs, permitting, and whatever the lot itself needs, plan on the all-in cost running well past $4,000. Even a straightforward lot tends to land closer to $6,000 to $6,500 once closing costs and fees are counted, before you’ve addressed anything the property itself needs.
Sold as-is means exactly that. Many of these lots have sat vacant, some for years. Budget for the property you can’t fully inspect, not the one in the listing photo.
The 18-month development clock starts at closing, not when you’re ready. If you’re not positioned to break ground reasonably soon after purchase, that timeline gets tight fast. NHDO buyers specifically are on an even shorter leash up front: a site plan is due to NORA within 10 business days of signing, a Change of Use permit from the city is due within 45 business days, and the maintenance obligation runs five years past closing, not just through the build.
Title history on redevelopment authority parcels can be more complicated than a standard resale. Ask questions at the seminar about what NORA can and can’t guarantee on title.
Cash ready means ready. Not “in process.” Not “pre-qualified.” Secured.
None of this means skip it. A $4,000 minimum bid on a residential lot in this market is a real opportunity, especially for buyers who already do this kind of work or have a contractor relationship lined up. But the buyers who come out ahead on properties like this are the ones who treat the unknowns, and the real all-in cost, as something to plan for, not a surprise they didn’t see coming.
If you’re considering bidding, worth asking yourself now: do you have the cash sitting ready today, or is it still a few steps away? That answer tells you whether September 29 is your auction or next year’s.
Philip Ewbank
Realtor | Keller Williams Realty
New Orleans 8601 Leake Ave, New Orleans, LA 70118
C: 504.335.7481 | O: 504.862.0100
Each office independently owned & operated. Licensed in the state of Louisiana. License #0995700196