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Be VERY Careful When Buying Tax Deed Land!

Last Updated on September 8, 2025

Be Careful When Buying Tax Deed Land: Simple Tips for New Investors

Buying land at a tax deed sale can give you a good deal. Counties sell land when owners do not pay property taxes. If you bid, you can get land for much less than its market price. But there are risks. 

Some bidders paid too much for land they never went to see. When they visited later, they found the land was hard to reach or not fit to build on. This is how to stay safe when buying tax deed land.

See the Land First

Never buy land you have not seen. Pictures from the internet may look nice, but they can hide problems. If you walk on the land yourself, you can check the ground, look for trash or flooding, and see if a road reaches it. Bidders jumped into the auction without visiting the land. Some parcels were narrow strips next to a highway, others were surrounded by private land. Those buyers learned an expensive lesson. Taking the time to visit can save you from these surprises.

Common Problems to Avoid When Buying Tax Deed Land

New investors often lose money because they do not check the details. Watch for these problems:

  • Zoning rules – Counties may sell land that is only for farming, parks or wetlands. Such land may not let you build a home or business.
  • No access – Some land is landlocked. That means there is no road or legal path to it. You may need a written easement to cross another person’s property.
  • Overbidding – Auctions can be exciting. It is easy to pay more than the land is worth. Always set a limit on how much you will spend.

Checklist Before Buying Tax Deed Land

StepActionWhy it helps
Inspect the landVisit the land, take notes and photosYou see the real condition
Check zoningAsk the county what uses are allowedYou avoid land you cannot use
Verify accessMake sure a public road or easement existsYou avoid landlocked parcels
Research valueCompare prices of similar land nearbyYou set a fair maximum bid

The End‑of‑Sale Trick

Some experienced bidders wait until the end of the auction. Many people spend their budget on the early lots, so good properties at the end may have fewer bidders. This can mean a lower price. But you must still do your research. If you bid on a leftover parcel without checking it, you may get the same bad land others avoided.

Simple Process for Buying Tax Deed Land

  1. Learn the rules.

    Each state and county has its own auction rules. Some hold live sales, others online. Some allow the original owner to buy the land back for a time.

  2. Make a list.

    Look at the county’s list of properties for sale. Write down the parcel numbers, addresses and starting bids for any land that interests you.

  3. Do your homework.

    Visit the properties, check zoning and access, and look for any issues like steep slopes or flooding. Cross off any land with big problems.

  4. Set your price.

    Decide the highest price you will pay for each property based on your research. Stick to your limit during the auction.

  5. Bid and follow through.

    Register for the auction and bid on the land you want. If you win, pay the county within the time they give you and record the deed. Plan what to do with the land next.

Frequently Asked Questions

What is a tax deed sale?

A tax deed sale is a public auction. The county sells land to recover unpaid property taxes. The highest bidder gets the deed after paying the full price and fees.

How is a tax deed different from a tax lien?

A tax lien certificate is a claim on unpaid taxes. You earn interest when the owner pays back the taxes. A tax deed gives you ownership of the land itself, but you may still need to handle any remaining liens.

Do I need to pay in cash?

Most counties require full payment soon after the sale, often within a day or two. Bring enough money or be ready to get a cashier’s check or wire the funds. You cannot back out if you change your mind.

Conclusion

Tax deed investing can be a good way to buy land for less than market value. However, it is not a quick way to get rich. The story from Josh and Cory’s auction trip shows why you should be careful. Always visit the land, learn the rules, check zoning and access, and set a firm budget. With these simple steps, buying tax deed land can help you build wealth while avoiding costly mistakes.e end of the episode, providing invaluable advice for navigating the unpredictable world of tax deed auctions. These practical insights will help you avoid overpaying and ensure your bids align with profitable strategies.

Don’t make the same mistake as those buyers who rushed into the bidding without proper research. Be VERY careful when buying tax deed land. Watch the video to learn how to approach tax deed investing with confidence and caution.

– Dustin

PS: Curious to learn more? Explore our guide to tax deed research for a step-by-step walkthrough.

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