The Tax Sale and What It Means To You

By using the power of the tax sale, thousands of people just like you have begun to make profit they would have never dreamed of in traditional real estate channels. One of these auctions takes place when the government is forced to foreclose on a property because of unpaid taxes.

Investors show up and begin the bidding, trying to nab the property for the lowest possible price. Sometimes the lien is up for auction; sometimes it is the deed itself. Either way, it has proven to be a successful system for many who have made their living from it.

As with all things, making a living off of bidding at a tax sale isn’t as easy as it sounds. There are disadvantages. For one thing, the properties available at these auctions are not typically what one would consider “top of the line”.

There aren’t too many well off families who are going to let their taxes fall so far into the hole they are forced to give up their mansion. Not that it never happens—it’s just somewhat rare. More often, the property is rather unsightly and the neighborhood isn’t the best. To turn around and sell the house, the buyer must often put some time into renovation and beautification. Even then, it may take some time to unload it.

Having said all that, those who can learn how to bid at a tax sale, what to bid on, and how to make the maximum amount of profit can do very well indeed. As long as you have some capital to get started (or at least a lending agency that is willing to help you out), you can jump in at anytime. Most states and counties don’t have any particular requirements on who gets to bid. As long as you know where to go and you have the money, your bid is as good as anyone else’s.

The important part of bidding at a tax sale actually takes place well before the auction. You find out what properties will be for sale and you go for a drive. You see those houses for yourself and you do the kind of inspections you can. The more information you have about a place in advance, the better off you’ll be. The government isn’t really in the business of sales and they aren’t going to go out of their way to provide you with information. You don’t want to be bidding blindly, so it helps to do your homework.