Last Updated on September 8, 2025
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Did you know there’s a way to secure tax deed properties before they ever hit the auction block? Exploring Tax Deed Deals OUTSIDE Auction is a smart strategy that can open up unique opportunities and save you from fierce competition.
Why Explore Deals Outside Auctions?
Most people assume that attending the auction is the only way to snag a tax deed property, but that’s far from the truth. By targeting deals outside auctions, you can approach property owners directly, negotiate better terms, and avoid bidding wars that drive prices up.
How to Find Tax Deed Deals Outside an Auction
Investors usually look at public auctions to buy tax lien or tax deed properties. Auctions may offer houses for very low prices, but they attract many bidders, which can push the price up. There is another option: you can buy a property before it goes to the auction. By talking directly to property owners, you can find Deals OUTSIDE the Tax Deed Auction and avoid bidding wars. This article explains why this approach might work, how to do it, and what to watch out for.
Why explore deals outside the auction?
Many people think the only way to get a tax deed property is by going to the auction. But the auction is usually the last chance to buy, and there is a lot of competition, which can reduce your profit. Looking for Deals OUTSIDE the Tax Deed Auction gives you several advantages:
- Less competition: When you talk to owners before the auction, you might be the only person making an offer. This can help you get a lower price.
- More control: A private sale works like any normal real estate deal. You can see the house, hire inspectors, and get title insurance to protect yourself. At an auction, you often buy the house “as is” and might face hidden problems.
- Helping the owner: Many owners with unpaid taxes are in financial trouble. Selling privately helps them avoid a public auction. It may give them money to move or pay debts. Sometimes you can let them stay in the house and pay rent after you buy it.
How this strategy works on Deals Outside the Auction
Finding tax deed deals outside the auction takes research and patience. Dustin Hahn shares a simple system: learn about the property, contact the owner and work out a deal. Tax sale experts say the process has six main steps:
- Find possible properties.
Check county tax lists, maps and public records to see which houses owe taxes. Focus on properties in good areas or those that look neglected.
- Do your research.
Make sure the property is a house and not just a vacant lot. Look at the zoning rules, check for other liens and find out the market value. You should also see if the owner lives there or has abandoned it.
- Track down the owner.
Find out who owns the house by looking at public records. If the owner does not live there, you might need a skip tracing service to find a phone number or mailing address.
- Reach out politely.
Send a letter or make a phone call explaining that you are interested in buying the property before the auction. Be friendly and respectful. Many owners are dealing with money problems and might appreciate a private sale.
- Make a fair offer.
Once you learn about the owner’s situation, offer a price that helps both of you. You can offer to pay the back taxes and closing costs. Some owners might want to stay in the house and pay you rent.
- Close the deal and pay the taxes.
If the owner accepts your offer, you need to finish the sale quickly. Work with a title company to transfer ownership and make sure you pay the delinquent taxes before the auction date.
Step-by-step summary
| Step | Action | Key points |
| 1 | Identify properties | Look at county tax records and lists of properties with unpaid taxes. Check for houses in good areas or signs of neglect. |
| 2 | Research | Confirm the property type (house or land), check zoning, liens, and market value. Think about whether the owner lives there. |
| 3 | Find the owner | Use public records and skip tracing to find the owner’s contact information, especially if they are absentee. |
| 4 | Reach out | Contact the owner by letter or phone. Explain that buying before the auction can be better for both sides. |
| 5 | Tailor your offer | Offer to cover back taxes and closing costs, and arrange terms that fit the owner’s needs, such as a lease-back. |
| 6 | Close quickly | Work with a title company and lender to finish the sale and pay the taxes before the auction date. |
Benefits of buying before the auction
There are two main benefits to buying tax‑delinquent property before the auction. First, you face little or no competition because most investors wait for the sale. This can keep the price low and give you time to negotiate. Second, you get a normal deed through a regular sale, so you can buy title insurance and protect yourself from future claims. You also have a chance to inspect the property and ask for repairs or price adjustments, which is rarely possible at an auction.
Potential challenges
This method also has downsides. Tax sale deadlines are strict. Counties usually release lists of delinquent properties only a few weeks before the auction, so you must act fast. Closing a sale can take 30–45 days, so you need good relationships with title companies and lenders to speed things up.
It can also be hard to reach the owner; people who owe taxes may be hard to find or may not want to talk. Each day you spend finding the owner is one less day before the auction. Lastly, you must do careful research to avoid hidden problems such as other liens or zoning issues.
Who should try this approach?
Talking to homeowners and working out deals is not for everyone. It takes patience and time to speak with owners and understand their situation. Dustin Hahn notes that this approach is not easy, but it can bring big rewards. You might buy a house for far below market value, avoid bidding wars and help someone solve their tax problem. If you like negotiating and are ready to move quickly, this method might be right for you.
Tips for success
- Learn the rules. Tax lien and tax deed rules vary by state. Make sure you understand how the process works where you live.
- Use the right tools. County tax databases, maps, and skip tracing services can help you find properties and owners. Some counties sell lists of delinquent properties at the treasurer’s office.
- Be kind. Owners behind on taxes may be dealing with illness, job loss or other issues. Approach them politely, explain your plan and listen to what they need.
- Make it win‑win. A good deal helps both sides. Offer to pay back taxes and give the owner a fair price. This can give them a fresh start while you get a good investment.
- Work fast and stay organized. Keep track of auction dates and follow up quickly. Make a checklist for research, contacting owners and closing, so you do not miss any deadlines.
FAQ
A tax‑deed sale happens when a county sells a property because the owner did not pay property taxes. The highest bidder gets the deed, subject to any superior liens.
Most counties publish lists of properties with unpaid taxes. You can also use online maps or paid tools that gather delinquent data across the state.
Yes. If you contact homeowners and agree to pay the back taxes, they may sell the property privately instead of waiting for the auction. This often helps both the buyer and the seller.
You do not always need all the cash. You can use financing, but you must close quickly. Building relationships with lenders who understand tax sale deadlines is important.
The main risks are tight deadlines, difficulty contacting owners and hidden problems such as other liens. Always research carefully and consider getting professional help.
Conclusion
Finding Deals OUTSIDE Tax Deed auctions can be a profitable strategy for investors. By researching delinquent properties, talking to owners and making fair offers, you can buy houses without the pressure of a public auction. While this method takes effort and quick action, it can bring strong returns and help owners resolve their tax issues. With careful planning and empathy, you can turn tax problems into opportunities.
Is This Method for Everyone?
This process isn’t for the faint of heart. It involves stepping out of your comfort zone, having conversations with property owners, and conducting thorough due diligence. However, the rewards can be significant—allowing you to find hidden gems at a fraction of the cost.
Check out the video above for a bird’s-eye view of our No-Auction Deals system, and click here for Yellow Letter Examples to get started.
-Dustin
