Last Updated on September 9, 2025
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Buying property through tax deed auctions can provide high returns because you purchase at a fraction of market value. Yet these deals also carry risks. Without research, you may end up with a property requiring costly repairs or hidden liens. This guide explains what tax deed sales are, why research is essential, and the steps you should take before placing a bid.
What is a tax deed sale?
A tax deed sale is a public auction where a county sells full ownership of a property to collect unpaid property taxes. If a homeowner fails to pay their taxes for a certain period (for example, two years in Florida), the county can seize the property and offer it to the highest bidder. The opening bid often equals the delinquent taxes plus interest and fees.
Why is research important?
Before you bid, you need to know the property’s condition, market value, and any outstanding liens or redemption rights. Counties sell tax deed properties “as is,” and officials make no warranties about title or marketability. Many properties need repairs because owners who can’t pay taxes often neglect maintenance. Doing your due diligence helps you avoid overpaying or purchasing a problem property.
Key reasons to research
- Identify true market value: Determine how much the property might sell for so you don’t exceed your maximum bid.
- Find hidden liens: Some properties carry other liens or encumbrances that survive the tax deed sale.
- Estimate repair costs: Many tax deed houses need repairs; factor that into your budget.
- Understand redemption periods: In some states owners can redeem the property after the auction, so know the rules before you bid.
How do redemption periods differ by state?
Each state sets its own redemption period—the time during which the original owner can reclaim the property by paying back taxes and fees. Knowing these rules helps you plan your strategy.
| State | Redemption period | Source |
| Florida | At least 2 years after a tax certificate is issued; the lien holder must wait two years before applying for a deed. | SRI Services |
| Texas | 6 months for most non‑homestead properties. | Tax Lien School |
| California | None—tax deed sales transfer title without a redemption period. | Tax Title Services |
Because rules vary, always consult your county treasurer or clerk’s office for local details.
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How to research a tax deed property
Steps to research a tax deed property
- Build your property list
Download the county’s sale roster or auction calendar. Websites like your county clerk’s office list upcoming sales. Plot addresses and decide which properties to “drive for dollars” in person.
- Check the redemption period and bid requirements
Verify how long the owner has to redeem the property after the sale and whether you need to deposit funds before bidding. This ensures you don’t tie up capital longer than expected.
- Research the property’s market value
Use tools like Zillow and Trulia to see recent sales and estimated values. Check comparable properties to decide how high you’re willing to bid.
- Inspect the property’s condition
Though you can’t enter the house before the sale, you can drive by to look at the exterior and neighborhood. Use satellite or GIS maps to examine the lot. If possible, talk to neighbors or local officials to learn about the area.
- Identify other liens and encumbrances
Consult the county recorder or a title search service to uncover mortgages, utility liens, or code violations that survive the tax deed sale. A county clerk’s FAQ warns that buyers are responsible for researching title and condition.
- Estimate repair costs and exit strategy
Tax deed properties often need significant repairs, so plan your budget accordingly. Decide whether you will sell quickly to another investor, rent it out, or rehab and resell. As the PropertyOnion guide notes, having an exit strategy before bidding helps avoid overpaying.
- Set your maximum bid and stick to it
Determine your maximum bid based on market value minus repair costs, liens, and desired profit. Do not chase bids; the difference between profit and loss comes down to preparation.
Case study: turning $5,100 into big equity
A student investor purchased a tax‑deed property for $5,100. Comparable homes were worth about $90,000. Because they checked for surviving liens and inspected the property, they sold it quickly for a substantial profit. This example shows that thorough research can turn a modest investment into significant equity.
Common questions( FAQ)
Tax deed auctions happen throughout the year and are usually conducted online. Check your county’s website for sale dates and registration requirements.
Yes. Most counties require bidders to have certified funds deposited before participating.
You cannot enter the home, but you can drive by and check public records.
Visit your county treasurer or clerk’s website for sale lists. You can also sign up for notifications or work with an experienced mentor.
Resources and next steps
To deepen your knowledge, explore our detailed guide on picking the right properties for tax deed sales and learn the #1 trait you need to make tax liens & deeds work to ensure long‑term success. We also explain the benefits of partnering with us on deals if you want hands‑on guidance.
For state‑specific redemption periods, consult official county resources (e.g., Brevard County Clerk) and SRI’s state summaries.
Ready to get started?
If you want help buying your first tax deed property, book a free call to receive step‑by‑step guidance. You can also download our free mini course on buying tax lien and deed properties and join our knowledge vault for more tools, checklists, and state‑specific information.
By taking the time to research properties, understand redemption rules, and plan your exit strategy, you can minimize risk and turn tax deed investing into a powerful wealth‑building strategy.
