BobL wrote: “...and once they get the house, they will be also ‘dreaming’ of what they could have done with the Insurance money it will cost to own it.”
The insurance is a drop in the bucket compared to the tax bill. If the property is valued at $650k, the federal taxes would be 0.35, or $225k.
That house is worth way more than $650k.
That figure is what the winner can opt for if they don’t want the house.
I’m guessing the homes value is somewhere north of at least a million.