How to Find Tax Sale Properties
Tax sale properties include low and high end properties, such as residential homes and commercial real estate. Tax deed sales occur throughout the United States. Properties first receive tax liens when owners fail to pay property taxes. Most government agencies sell tax liens to interested buyers for a fraction of the lien amount. Properties eventually are sold in tax deed sales after the owners continue to not pay taxes.
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Instructions
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Determine the geographic scope of your search. Most tax sales consist of auctions held by individual municipalities or sheriff departments. For example, Miami-Dade County, Florida holds a monthly auction to sell properties within its jurisdiction.
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Be competitive. Anyone, including non-local investors, can bid on properties. Some counties offer online auctions so that you can bid from anywhere. You should expect difficulty in purchasing property if you do not have legal status in the United States.
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Browse tax sale listings online through the municipality's website. While the final list definitely is available on the day of the sale, you should evaluate properties beforehand so that you only buy valuable land. If you purchase a property that needs to be rebuilt, you might face zoning obstacles that will prevent significant improvements.
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Search local newspapers in your target area for advertisements. Government agencies must post public notices to inform the community about tax deed sales. Many states require postings at least 20 or 30 days before the sale.
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Join an online database, like foreclosuredatabank.com or foreclosurelisting.com that collect information about foreclosures, which often include tax sales. Membership rates vary, though many average around $10 per month. Consider participating in any promotions like a free trial before purchasing a membership.
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Contact local real estate agents and attorneys. Auction rules vary based on location, so you often can receive specific information by consulting with local experienced people. For instance, one jurisdiction might require tax sale property owners to independently register the title with the place of recording -- usually a county office -- so that ownership is established. Another jurisdiction might allow existing liens to transfer when properties are purchased at tax sales. Liens represent legal claims against assets, including property, in order to receive payment of a debt.
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Tips & Warnings
If you attend a tax lien versus a tax deed sale, then you are buying ownership of the lien. Thus, the property owner must pay you instead of the local agency that filed the lien.
Several tax sales require payment in cash or certified check. Additional assessments often include recording and document fees.
