Which states sell property for back taxes? The answer: all of them. When a person is delinquent for long enough on their property taxes, in every state in the United States, that property will eventually be sold. Some states/counties sell for just the amount of taxes owed by a lottery system. Usually properties are sold at auction, to the highest bidder.
The bidding generally starts at the amount of taxes owed, but as you can imagine, rarely sells for the opening amount. Most decent properties farms for sale central oregon will sell for close to retail value, due to the increasingly competitive nature of the industry. However, that doesn’t mean that if you’re interested in buying tax property that you should be scared off. If you are just starting out, tax sale isn’t the place for you, but you can still get tax property for a steep discount – as low as a few hundred dollars, in many cases – if you follow a few simple rules.
1. Again, don’t attend the tax sale. You will likely waste your time and be outbid, and even if you aren’t, you have to pay your entire bid, in cash, at the sale – and you won’t be able to inspect the property you’re buying beforehand. Plus, most owners pay off their taxes during the redemption period and you’ll likely just end up disappointed.
2. Do buy tax sale property directly from the owners – but only after tax sale. Let the bidders at tax sale tell you which properties are worth your time – check the results of the tax sale and see which properties were hot. Then, wait until almost the end of the redemption period.
By this time, owners that can pay off their taxes will have done so. Those that can’t will need to sell quickly to avoid losing the property to the government entirely. If you approach these owners at this particular time, you will find they are ready to sell for a steep discount – or, that they have already decided to just let the property go. This last group of owners is your gold mine – they are often willing to sign their deed over to you for a few hundred dollars, just to get it over with sooner.
If you follow that method of tax sale investing, you’ll find yourself head and shoulders above your competition that is bidding at auction or trying to get to owners early in the game. It’s the only surefire, legal way to get property for as little as the taxes owed, and your competition simply doesn’t have the sense to do it.