Buy a dirt-cheap house in Texas possible for as little as $5400 these properties are going up for sale every month for amazing deals. If you know how to find the,m you can make great money with Cheap properties.
In Texas, tax sales offer a way to buy properties for a fraction of their market value. Some investors have picked up homes for as little as $5,400, with values reaching $100,000 or more. These sales happen every month across the state, giving buyers a chance to invest in real estate without breaking the bank.
This guide walks you through how tax sales work in Texas, how to research property titles, and what to watch out for before placing a bid.
How Texas Tax Sales Work
Texas holds tax sales on the first Tuesday of every month in all 254 counties. These auctions allow investors to buy properties where the owners haven’t paid their taxes. The bidding starts at the amount owed in back taxes, and the highest bidder wins.
One unique thing about Texas is the six-month redemption period. If the previous owner wants their property back, they must pay you 25% on top of what you bid within six months. If they don’t redeem it, the property is yours.
If the property is vacant land or a commercial building, the redemption period could be longer—up to two years.
Steps to Research Texas Tax Sale Properties
Before bidding on a property, it’s important to do your homework. Buying a tax sale property without checking the title or condition can lead to unexpected problems.
Step 1: Find the Property List
Each county has a law firm or auctioneer that manages tax sales. A good place to start is LGBS.com, which lists many Texas tax sales.
Step 2: Check the Property Value
Visit the county’s appraisal district website and search for the property’s market value. This will also give you details like property size, land use, and ownership history.
Step 3: Search for Liens
Not all debts are erased after a tax sale. The most important thing to check is whether the county has additional liens on the property. These might stay with the property even after the auction.
Go to the County Clerk’s website, search by the owner’s name, and look for liens. Here are a few things to watch out for:
- County Tax Liens: If the county has other unpaid taxes on the property, you may have to pay those.
- HOA Liens: Homeowners Association liens usually get wiped out, but it’s good to double-check.
- IRS Liens: The IRS has a short window after the sale to redeem the property.
- Mechanic’s Liens: If a contractor placed a lien on the property, it may or may not survive the tax sale.
Step 4: Check for Flood Risks
Some properties in Texas are in flood zones, which could mean expensive insurance. Use FEMA’s Flood Map Service to check the risk before bidding.
Step 5: Verify the Redemption Period
If you win a property at auction, you may not be able to sell it right away. Homes have a six-month redemption period, while vacant land and commercial properties could have up to two years.
Great Investment? Why?
Buying tax sale properties in Texas can be a smart investment for several reasons:
- You can get properties far below market value. Some homes sell for just a few thousand dollars.
- If the owner redeems, you make a guaranteed 25% profit. This is better than most stock market returns.
- There are opportunities every single month. With 254 counties holding auctions, there’s no shortage of deals.
- Many counties allow online bidding. You don’t have to be in Texas to invest.
Common Questions About Texas Tax Sales
Can I get a loan to buy a tax sale property?
No, you must pay in full at the auction, usually with a cashier’s check.
What happens if someone is living in the house I buy?
You may need to go through the eviction process if the previous owner or tenant refuses to leave.
What if a property still has a mortgage?
Most mortgages are wiped out after a tax sale, but always check the title to be sure.
Can foreign investors buy Texas tax sale properties?
Yes! Out-of-state and international buyers are allowed to bid.
Need Help Getting Started?
If you want one-on-one guidance on finding tax sale deals, researching titles, and bidding strategically, we can help.
Click the link in the description to book a free call with our team.
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