Tax Deed Sales : Three Points To Keep In Mind

Like the old Ben Franklin saying goes, “The only things certain in life are death and taxes.” And when it comes to your home, this is truly a fact. It’s required that every homeowner pays taxes to the government. Over time, if you fail to do so, the government has the right to conduct tax deed sales in order to make up the money they’ve lost. This can be a bit difficult for property owners because they are losing their homes. Yet, at the same time, they apparently cannot afford to pay the costs, so having the home sold will at least mean they no longer have to pay. And as a buyer, or bidder, they have the opportunity to get a home at a very affordable cost compared to what they would pay if they simply found a home on the market. Explore three key details.

The process
Basically, the tax deed sale process is simple. If a homeowner owes taxes a property, the government takes the home and puts it up for sale. This means they want to not only get the money owed, but also there could be court fees, interest, and other costs tacked onto the property. The government will announce that they’re having tax deed sales, bidders will come out to the event, and the person that bids the highest gets the property. The best thing is that people that have decided to invest in such a property really get to enjoy all the benefits. For example, when someone goes to this type of auction and pays for the back taxes on a property, they are getting to own a property without paying nearly as much as they would pay if the house was sold at full market value.

Locating the events
There are a variety of ways to find out about tax deed sales. One of the first ways is to get in touch with the tax collector in your county. He or she will be able to give you the information you need or at least point you in the right direction. Also, the newspaper tends to keep that kind of information available. It’s not done everyday, so it’s important to keep a close watch. You can usually see pictures of properties that are up for sale also. In addition, there are many websites that make it their job to collect such information and create lists of all the current or upcoming events.

Risks
Although buying property at tax deed sales events can be lucrative, it is important to be cautious. This means being careful in obtaining the correct information. For instance, some places claim to have the latest and greatest information or lists regarding these events and they want you to pay a fee in order to get them. Even though it’s common to pay for lists, try to do as much research as you can before hand to determine whether the seller is legit. Also, don’t hesitate to do some leg work on property and solidify its worth before actually making a purchase.