Tax Sale Basics for Novices

A tax sale is an action that is usually connected to the selling of property, usually real property, by a government agency or authority. The reason behind selling it is usually due to delinquent payments of the taxes that the owner or owners of said land owe due to loans. In almost all of the cases, the land is held for auction by the county is it located in or the county to which the owners owe their payments. The two usual ways of auctioning off these properties are either through deed auction sales or lien certificate auction or sales. Knowing Your Way There are several advantages and disadvantages in investing in a tax sale. Among the many advantages that come with the transactions of this auction are the lesser price of the actual land and the almost always-clean title that comes with it. Most counties that put up these auctions give a reasonable duration of notice for interested parties. This time gives those who are interested in these transactions enough time to do a little research about the lands that are included in the auction. It is important to have prior knowledge of it and its surroundings before even trying to make a bid for it. Doing research about the land and the county it is in should give interested parties a background of it and its potential. The research can also provide enough information regarding the feasibility of the land for some sort of business or investment. Some counties offer up marketable properties which may seem very feasible for good businesses initially but a little digging into its background will show that the land may have zoning problems or other environmental issues that can limit its potential. Some properties may have structures which can also limit affect it's standing in the environment or society. Old buildings and structures may have historical value that may limit its potential as a business establishment while some structures may be seen as a threat to society and the environment which is why it was shut down in the first place. Other things to look out for in a tax sale is the balance of the current owner and the probability of him or her being able to repay the outstanding balance that the investor may put up. In this case, investing in the property may be futile because there is a big possibility that the land will go back to the owner after all has been paid and done. This means that there is little return of investment to be expected from it. Some lands might not be situated in ideal locations despite being big. The size will not matter if there is no access to roads, water or fertile land, which would be of great help for farming ventures. Novice bidders in a tax sale should deal carefully with auctions since there may be some hitches that will come out only after the bidding has been over and done with.