How to Prepare for a Tax Sale
A tax sale can be a very good way to find a deal. For that to be possible, though, you need to ensure you do your homework and invest wisely in it.
Know the Auction
No matter if you are bidding online or on the courthouse steps, there are several things you need to do in order to ensure a tax sale goes your way. The first thing to do, then, is to know the limitations and requirements of the auction. All of this information is available from the company before you will need to invest. You will need to know the cost of participating in the auction, the requirements for funding and the rules about who can bid. Once you know this, you are in a good place.
Do Some Research
You will have some limited time to research a property before you invest in it. It is a good idea, for example, to have a real estate agent available to help you. This professional may be able to look up previous MLS listings for the property. That can provide you with a good deal of information about the features and specs of the home. You also want to consider the tax records available. Any property records available to you can help answer questions and guide your investment decisions.
Know the Value and Your Limitations
It is very easy to put yourself in a position where you can overbid on a property and find yourself paying for it over the long term. Know your limits based on the worth of the property. It is also important to consider what you will do if you win this tax sale. Do you plan to flip the home? IF so, you need to consider the costs of rehabbing it. Do you plan to rent it? Consider the opportunities in finding renters.
A variety of steps are necessary for any investor to take prior to the investment in a tax sale. It is a good idea to put some time into any property you may bid on. There is no doubt this is a key opportunity for significant savings. Yet, before you invest, you have to do the research to ensure you are getting what you truly want and need.
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