The State of Idaho Lease properties on and around Payette Lake, have been coming up to auction the past three years. The main purpose of this process is to get the Idaho Land Board out of the Cottage Lease business. For the most part the auction is set up with the current Lease Holder in the best position to acquire the property and transfer it into Fee Simple ownership. This way the new owner can now refinance or sale the property much easier then if it is leased from the state.
Here is how it works, the auction is for the land only. The state has appraised the land and the minimum bid has to be for the apprised value. The auction also adds fees to cover commissions, etc so you pay about 8% above the minimum bid at the end of the auction.
The state also appraised the home on the property and gives it a value, however it is not part of the auction until the end. Here is the kicker! If the current lease holder bids on the property they only have to pay for the land, as they already own the home. If some else bids on the land and becomes the winner in the auction of the land, they have to pay the current lease holder the appraised value of the home.
In the past auctions only one lease holder lost the property. This property was lower priced cabin and not on the lake. None of the lake property lease holders with homes have lost the auction.
The best opportunity for others to get either lake front or other property in the auction is what the State calls Unleased Lakefront sites. These usually do not have any homes on them and are vacant land. In the new auction coming up there are two unleased lakefront sites and two non-lake front sites.
One of the lake front sites has a starting price of $1,055,000, for more information on this property click this link.
The other lake front site has a starting bid price of $1,135,000, for more information on this property click on this link. Both are on the west side of the lake offering mountain views over the lake.