With no clear end of housing's downturn in sight, home builders and developers are eager to move their standing inventory–now. Many turn to residential auctions in an effort to minimize their losses and stay afloat. Since we conducted our first developer auction of the current cycle in October 2006, demand for auction services, mostly in California, has grown. We expect demand to continue through 2009. Builders and developers considering moving forward with an auction should carefully consider the following.