How to Buy Tax Deeds Online
Find and buy a bargain or two and you'll discover that buying tax deeds online can be a profitable pastime. Learn how the process works and you'll understand why a growing number of investors are exploring this opportunity to safely and profitably invest in real estate. In recent years, county governments have turned to the Internet to conduct their tax deed auctions, increasingly with the help of third-party vendors.
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The Process of Purchasing Tax Deeds Online
Evaluate the list of states, Canadian provinces and territories that offer tax deed auctions and determine in which location--or locations--you would be most comfortable purchasing properties. Search for those that hold their tax sales on the Internet and have online local county tax assessor sites, making it easy to research public information on a property. Identify one or two states or provinces and thoroughly research the system by which they operate their tax deed sales. Check to see when their upcoming auctions will be held. TaxSaleLists.com provides a calendar of upcoming online auctions at no cost.
Increase your familiarity with your chosen location by taking a day trip or weekend exploration of the county or counties. Record the characteristics of the location by taking notes and as many pictures as you can, then stop by the county courthouse if time allows and pick up any additional information there may be on tax deed sales. Visit a real estate office and introduce yourself to a broker. You may want to locate a broker on the Internet and arrange this meeting before your trip. The broker can help answer questions later. If you
grow comfortable with online tax deed sales, you can repeat this process with other locations.
Search for the list of properties offered through an auction on the county assessor website, the county tax collector website, or a site hosted by a third party vendor. Prepare to participate in the tax deed auction by reviewing the list of properties offered. A property could be a single-family home, commercial property, vacant land or a worthless odd parcel. Perform your due diligence on worthwhile properties by searching the public records on the county assessor website, as well as information culled on sites such as Zillow.com. Look for a basic description of the property, location maps, blueprints, pictures, tax information and indications of potential market value.
Reduce the amount of time spent gathering information on properties by buying an enhanced list of auction properties. TaxSaleLists.com, for example, can provide enhanced lists of properties with information already gathered from the county assessor's office. This can greatly reduce the amount of time you would otherwise spend on the county assessor's website.
Register for the online tax deed auction before the deadline for participation. In most jurisdictions, there is also a deposit required to participate in the sale. Have the cash available to pay for your purchases before bidding, because there are stiff penalties for bidders who don't pay for their winning bids within the time limit (usually 48 to 72 hours). The penalties include loss of your deposit and/or being barred from participating in future auctions. If you don't have a winning bid, your deposit is usually returned within 48 hours of the close of the auction.Source: ehow.com