Tax Deed Auctions: How to Win Big
11/20/2025 12:00:00 AM
Tax deed auctions flip the script: instead of buying a lien, you’re bidding on the deed itself—meaning ownership transfers immediately if you win. Preparation, not reflex, decides who walks away with the prize.
The Mechanics in 60 Seconds
Counties sell deeds when liens go unredeemed past the statutory window. Bids start at the total taxes, penalties, and fees owed. The highest bidder pays cash (or certified funds) and receives the deed—subject to any remaining redemption rights in some states. Speed matters, but only after homework is done.
Pre-Auction Battle Plan
Cap Your Bid Early – Calculate 65–70 % of after-repair value minus rehab and holding costs. Write the number on a sticky note; never exceed it.
Decode the List – Cross out anything flagged “minimum bid exceeds market value,” occupied by tenants, or in known flood zones.
Remote Recon – Use county parcel viewers and drone footage (if available) to spot roof damage, illegal additions, or neighboring nuisances.
Bring Two Screens – One for the auction platform, one for live comps and title notes.
In the Heat of the Moment
When bids climb, adrenaline spikes. Breathe, glance at your cap, and let emotion bid against itself. The investor who hesitates at the right second often wins at the right price.
Discipline isn’t sexy, but it’s the margin between a $40,000 windfall and a $40,000 anchor. Walk in prepared, walk out owning.
This blog post is for informational purposes only and should not be relied upon as financial or investment advice. Real estate investments carry risk, and individual results will vary. Always consult with your team of professionals before making investment decisions. The authors and distributors of this material are not liable for any losses or damages that may occur as a result of relying on this information.