How to Pick Properties for Tax Deed Sales?

How do you pick properties to drive for tax deed sales?

Start by building a list from the county auction roster, then scout those properties in person, set a firm budget, and check your state’s redemption period. For example, in Florida, property owners have at least two years to redeem before a tax deed sale, while in Texas, most non‑homestead properties can be redeemed within six months. This due diligence helps you avoid overpaying and keeps your bids strategic.

Build your property list: Download the county sale list, research assessed values, and plot addresses so you can “drive for dollars.”

Match your budget: Decide whether you’re targeting higher‑value homes or lower‑priced lots. Don’t forget auction fees and redemption costs.

Narrow your options: Avoid very low‑value properties that could need costly repairs, and always check for additional liens.

Why Does it Matter?

Tax deed auctions give you the chance to buy real estate at a fraction of market value. But the profits only come if you choose wisely. Jumping in blind can leave you with costly repairs, lingering liens, or messy legal problems. The key is learning how to build your list, stay on budget, and know the rules where you’re buying.

How to Pick Properties Before Buying?

Step 1: Build Your Property List
Start by creating a list of properties to scout. This is the first step for any tax deed auction.
Recently, we divided tasks during a trip. I focused on one county, and Josh handled another. Visiting properties in person can reveal details you might miss online. You’ll spot issues and assess the neighbourhood firsthand.
Step 2: Match Your Selection to Your Budget
Your budget plays a big role in property selection. Here’s how to adjust your approach:
For Larger Budgets:
Look for properties priced above $40,000. These tend to need fewer repairs and have fewer legal issues.
For Smaller Budgets or Beginners:
If you have less money, focus on properties with low starting bids. This could include lots of small homes. Buy them cheap at a tax deed sale, then resell to buyers who can handle renovations.
Step 3: Narrow Down Your Options
Use these tips to refine your list:
Avoid Low-Value Properties:
Properties under $40,000 often need major repairs. If you lack the skills or funds for that, focus on properties better suited to your situation.
Visit in Person:
Online research only shows so much. Visiting a property lets you see its true condition and spot red flags.
Find High-Potential Deals:
Target properties with low bids but high market value. These offer better returns on your investment.

Case Study: A Big Win

From $5,100 to big equity. One student purchased a tax‑deed property for $5,100 and discovered comparable homes were worth about $90,000. Because they verified there were no surviving liens and inspected the home, they sold it quickly for a substantial profit.

On my own tax‑sale trips, I’ve split counties with a partner to cover more ground. Seeing properties firsthand revealed issues you’d never notice online, like a hidden easement or an unpaved road, which changed my bidding strategy completely.

Tax Deed FAQs

What’s a tax deed sale?

A public auction where the county sells full ownership of a property for unpaid taxes.

Where can I find information on tax deed sales?

County treasurer websites, local papers, or auction platforms. Many are online now.

Do I need cash to join the Tax Deed Sales?

Yes. Counties usually want certified funds on the spot.

Can I buy tax liens and tax deeds outside of the state?

Sure, but learn the rules first. Redemption periods and auction processes vary.

Final Takeaways

Build and refine your list, and actually see the properties.

Stick to your budget and don’t chase bids.