Last Updated on September 9, 2025
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Large city tax deed auctions can feel like a mosh pit—hundreds of bidders in one room, people shouting over each other and no way to hear the auctioneer. To maximise your chances of winning properties at steep discounts, start with smaller counties where the pace is manageable and the competition thinner.
Why are big‑city tax sales so crowded?
Major metropolitan areas such as Houston attract droves of investors. It’s not unusual to have 300 people packed into the county room, all vying for the same properties. The high attendance drives up prices and creates a stressful environment. While big cities occasionally deliver great deals, the odds of being outbid are much higher.
What is the purpose of tax sales?
A tax sale is a public auction where a county sells a property because the owner has failed to pay property taxes for several years. In California, for example, property becomes “tax‑defaulted land” if taxes remain unpaid for five or more years, and the county tax collector must sell it to collect the unpaid taxes. San Joaquin County explains that the goal of these sales is to collect unpaid taxes and transfer the tax‑defaulted property to a new owner. Understanding this purpose reminds you that auctions are not about fair market value; they are about clearing tax liens and therefore can offer bargains—if you’re prepared.
How can smaller county auctions help you succeed?
Starting in less populated counties reduces the number of bidders. When we began investing, we noticed that auctions in rural counties still attracted investors, but the competition wasn’t nearly as intense. The auctioneer can be heard, and you have time to evaluate properties between bids. Fewer bidders also mean the winning bids often stay closer to the minimum, increasing your profit margin.
How do you choose the right county?
Picking a county isn’t just about driving distance. Use this method:
- Build a shortlist
Look at sale calendars of several counties surrounding major cities. Review the property lists, focusing on counties where there are enough properties in your price range. A mentor of ours routinely compared two or three counties on the outskirts of big cities, then went to the one with the best prospects
- Check redemption periods
Know how long previous owners have to reclaim the property after sale. In Texas, homestead and agricultural properties have a two‑year redemption period, while other properties have a six‑month window. Short redemption periods allow you to take possession sooner.
- Assess travel costs
Smaller counties may be farther away, but the lower competition can offset travel expenses. Plan routes to drive for dollars and inspect properties in person.
- Consider local rules
Some counties offer online auctions, others require you to register in person. Check deposit requirements, bidding increments and payment deadlines on the county tax collector’s site
What due diligence should you perform?
Before attending any auction—large or small—you must research each property. Here’s a checklist:
- Review the tax sale list – Download the county’s sale list and note the assessed value and parcel number.
- Investigate the property – Visit the site whenever possible. Properties are sold “as‑is”; counties like San Joaquin warn that buyers must investigate zoning, building code compliance and any environmental issues.
- Check liens and encumbrances – Some liens may survive the sale. Review county records or hire a title company to identify any mortgages, HOA liens or IRS tax liens.
- Set a budget – Decide the maximum you’re willing to pay, including the redemption premium and auction fees, and stick to it. Don’t get caught up in bidding wars.
Should you ever attend a big‑city auction?
Big auctions can still be worthwhile if you’re prepared. We recommend attending with an experienced coach or as part of a training group. When you’re surrounded by dozens of bidders and hundreds of parcels, a coach can help you prioritise bids, manage your time and avoid getting overwhelmed. Once you have mastered smaller auctions, a well‑planned visit to a major sale can yield lucrative deals.
FAQs
A tax deed sale transfers full ownership of the property to the winning bidder once any redemption period expires. A tax lien sale, on the other hand, sells a lien certificate that earns interest; you don’t own the property unless the owner fails to redeem and a foreclosure process follows.
Our guide on how to pick properties for tax deed sales explains how to build your list, match it to your budget and avoid low‑value properties. It also includes a case study showing how one student turned a $5,100 purchase into a six‑figure profit.
No. Anyone who meets the registration requirements can bid. However, you should research the state’s redemption period and property transfer laws to avoid surprises.
Not always. California has no extended right of redemption once the auction occurs. In contrast, Texas provides two years for homestead and agricultural land and six months for other properties. Always check the statutes in the state where you’re bidding.
Final takeaways
Buying tax deed properties doesn’t have to feel like an extreme sport. Start with small counties near major cities to minimise competition. Research several counties, check redemption periods and travel costs, and perform thorough due diligence on each property. When you’re ready, a coach or experienced investor can help you tackle larger auctions efficiently.
Free resources and next steps
If you’re serious about buying tax deeds at deep discounts, explore our free resources, including a mini‑course on the basics of tax lien investing and a printable auction calendar. You can also book a free call with our team to discuss your goals and receive personalised guidance. We look forward to helping you secure your first property.
