How to Succeed at Real Estate Tax Auctions

Have you seen those late-night television commercials promising that you can buy real estate for just pennies on the dollar? Have you wanted to get in on that but didn't know how? Here's how...

Right off the bat, let's get one rumor out of the way. You can NOT by just any property you've seen for sale this way. Tax auctions are only for a certain category of real estate. When owners don't pay their property taxes, they are sent a series of notices and warning, and then, if they still don't pay up, their properties are sold at a special kind of auction.

The last notice they receive is frequently delivered by a Sheriff deputy, and the auctions are often referred to as a 'Sheriff's Sale'. In many areas, the bidding starts at one dollar. The bidding can go up to any amount, (sometimes much more than the property is worth!). There are great bargains to be had though, if you know what you're doing.

Cozy up to the county staff
The workers a the county tax offices are your best source of information, so be NICE! By the day of the sale they are going to be overworked and tired of the whole mess. Be patient, be friendly, be ultra-courteous, and consider offering chocolate. Seriously, these folks can tell you things that aren't in the official records, so you don't want to get on their bad side.

Check for assessments
In some places, outstanding assessments become the responsibility of the buyer. Those can be hundreds, or even thousands, of dollars. Sometimes those are listed separately from the tax data, so you need someone familiar with the local system to help make sure you don't miss anything. If you've been nice to the staff, they'll tell you which properties have problems attached to them, so that you can steer clear. Otherwise, you'll have to search the individual records of each property.