Tax Deed Sales: A Guide To Success

While the housing market is still far below where it should be and people are being forced to give up their homes on a daily basis, it could be an opportunity for wise individuals to profit from an unfortunate situation. How can you do this? The answer is tax deed sales, which are put on by the government after they have come down on a person’s property for failure to pay taxes. In such a sale, you are bidding to purchase the property, often at a greatly reduced rate. Here are some things you should know if you are planning on investing.

Knowledge is power when it comes to succeeding at tax deed sales. Sure, anyone can go in with a bunch of money and outbid the competition. But good luck making any money on the investment. The key is to learn as much as you can about the property in question and determine a good price for yourself. When the bidding exceeds that price, you can quietly excuse yourself. Because you probably won’t be able to take a tour of the interior, you’ll have to make do with circumstantial evidence, such as records from the county clerk and filed from the tax assessor.

Speaking of knowledge, make sure you are thoroughly familiar with all of the laws and regulations that concern tax deed sales in your area. These laws are often fairly uniform from state to state, but you never know when you will run into a strange aberrant rule that will prevent you from doing what you need to do. Because studying these laws yourself can be time consuming and prohibitive, join some online forums that steep themselves in this kind of information and it can be your shortcut to an amateur degree in tax deed sales.

Finally, you’ll need a good source for tax deed sales and their listings. These aren’t always easy to come by for the average person. If you make some connections in the local government, you may be able to do a little better, but that can be a challenge in and of itself. If you’re planning to bid and invest on properties around the country, it’s certainly not practical. There are several online sites that provide users with this information, however, so it would definitely be worth your time to sign up and have the repository at your disposal, particularly if you think you might want to make a living buying and selling these properties.