Last Updated on September 8, 2025
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What to Do If You Don’t Get a Property at a Tax Sale
Going to a tax sale and leaving without buying a property can feel discouraging. You might worry that you wasted your time or did something wrong. In fact, many new buyers do not win at their first sale. Lists of properties can shrink quickly when owners pay their overdue taxes, fix title problems or file for bankruptcy. Not winning does not mean you should quit. It simply means you have more to learn and prepare for the next sale.
Why Properties Drop off the List
- Owners pay what they owe. Many counties give owners time to pay their back taxes. When owners pay the taxes and any interest, the property will not be sold.
- Legal problems. A county may cancel a sale if there are mistakes in the paperwork, if the notice was sent to the wrong person or if the owner files for bankruptcy. When this happens, the property is taken off the list.
- Other changes. Sometimes the value of the property or special fees changes. This can also remove a property from the sale.
These reasons explain why a long list of properties can become very short by the time the auction starts.
Why Not Winning Isn’t Failure
At a tax sale, you may compete against people who have done this for years. It is normal for beginners to be outbid or to see good properties disappear. Walking away without a property can be a smart choice if the remaining deals do not fit your budget or plan. It is better to skip a bad deal than to spend money on a risky property. To succeed in this business, you need patience and the ability to keep trying.
How to Learn From a Missed Purchase
- Improve your research.
Counties publish lists of tax sale properties, but the lists can often change. Always check that a property is still available before the sale.
- Watch other bidders.
See how experienced buyers bid and how high they are willing to go. This helps you understand the market and plan your own bids.
- Check your checklist.
Make sure you looked at the title, liens, property condition and redemption period. If you missed something, update your checklist for next time.
- Stay positive.
Use the time between auctions to learn more. Many investors attend several sales before they buy their first property.
Getting Ready for the Next Auction
Being prepared will increase your chances of success. The table below shows steps you should take before your next tax deed or tax lien auction.
| Step | What to Do | Why It Helps |
| Register early | Counties often require you to send in registration forms and tax paperwork, such as IRS Form W‑9, before the sale. | If you are not registered you cannot bid, and late forms may slow down your approval. |
| Set a spending limit | Decide how much you are willing to pay for each property. Do not bid more than this amount. | Helps you avoid overbidding and protects your money. |
| Look at the property | If possible, drive by the property to see its condition and the neighborhood. | You may notice problems that are not shown in the auction listing. |
| Check the title and taxes | Look up county records for mortgages, liens, unpaid bills and zoning rules. | You do not want to buy a property with hidden problems. |
| Know the auction rules | Learn how the bidding works, what deposits are required and if proxy bidding is used. Learn about redemption periods. | Each county is different. Knowing the rules helps you avoid mistakes. |
| Bring the right money | Many counties want certified checks or other approved payments. Have these ready because you may have to pay right away. | Make sure you can complete the purchase without losing the property. |
| Plan for redemption | In tax lien sales the owner can pay back the taxes and keep the property. If this happens you get back your money plus interest. | Knowing this helps you understand your possible return and cash flow. |
Tax Lien vs. Tax Deed Sales
| Feature | Tax Lien Sale | Tax Deed Sale |
| What you buy | You buy the lien, which is the right to collect unpaid taxes and interest. | You buy the property itself, including the unpaid taxes. |
| What you earn | You earn interest on the money you pay. If the owner does not pay, you may be able to foreclose and take the property. | You become the owner of the property. In some states, the former owner can pay back the taxes after the sale and get the property back. |
| Where it happens | Tax lien sales are allowed in about half of U.S. states. | Tax deed sales take place in states that sell the property instead of the lien. |
| How bidding works | Buyers may bid down the interest rate they are willing to accept or bid up a premium in some sales. | Buyers bid up the price of the property and the highest bid wins. |
| Redemption period | The owner can pay the taxes and interest before or after the sale. | Some states allow the owner to redeem after the sale; others transfer the title right away. |
Tips to Stay Patient and Keep Trying
- Learn the basics. Visit the county treasurer’s website or read official guides to understand registration and bidding rules.
- Attend as an observer. Go to a few auctions without bidding. Watch how the process works and note common mistakes.
- Talk to other investors. Experienced buyers can share advice and may even partner with you on future deals.
- Stick to your limit. Decide your maximum bid before the auction and do not let emotions push you above it.
- Manage your emotions. Auctions can be exciting. Remember that there will always be another sale and it is okay to walk away.
- Review and adjust. After each sale, think about what worked and what did not. Update your research process and budget before the next auction.
Frequently Asked Questions (FAQ)
Properties can be removed from the list when owners pay their back taxes, when there are paperwork errors or when the owner files for bankruptcy. Counties may also remove properties because of changes in value or special fees.
No. Many new investors go to several auctions before they buy their first tax lien or deed. Sometimes the smartest move is to leave if the remaining properties do not fit your plan. Each auction is a chance to learn and improve.
Register early, research every property, set a firm spending limit and learn the auction rules. Watch experienced bidders and learn their strategies, such as starting low and raising bids slowly.
Tax deeds can offer big returns, but there are risks. Properties are sold “as is” and may have hidden damage or other problems. In some states, the former owner can redeem the property after the sale, which can delay your ownership. Always do thorough research and plan for repair costs or legal fees.
Don’t let discouragement stop you from diving into the world of tax lien and deed investing. Watch the video above and equip yourself with strategies to combat self-doubt and keep pushing forward.
-Dustin
NOTE: Don’t let discouragement or the fear of failure hold you back from starting in this business. Every step, even setbacks, is a valuable learning experience on your path to success.
