Last Updated on August 1, 2026
Estimated reading time: 5 minutes
Author: Jessa May Bautista
Reviewed by: Josh Blanchard
Fact Checked by: Jack Aldous
If you want to buy real estate for a fraction of its worth, OTC Tax Deeds might be the easiest way to start. No auction. No bidding war. You just pay the back taxes and the property can become yours.
In a recent live stream, Dustin Hahn and Josh Blanchard broke down a real case study: a Maryland house worth 1.3 million dollars, sitting on the county’s OTC list for only 20,000 dollars in unpaid back taxes. That is not a typo. That is exactly why over-the-counter tax deeds are worth learning about.
Table of contents
Key Takeaways
- OTC Tax Deeds allow you to purchase properties directly from the county for back taxes, avoiding auctions and competition.
- For example, a Maryland house worth 1.3 million dollars sold for just 20,000 dollars in unpaid taxes as an OTC tax deed.
- To find OTC tax deeds, check recent auction results and reach out to county tax offices for their OTC lists.
- Buying based on parcel number is crucial to avoid costly mistakes associated with using property addresses.
- OTC tax deeds are great for beginners due to low costs, no competition, and the possibility of earning interest even if the original owner redeems the property.
What Is a Tax Deed?
A tax deed is a county legal document that gives the county title to a property when real estate taxes stay unpaid long enough. After that, the county sells the property to recover the unpaid taxes.
What Are OTC Tax Deeds?
An OTC tax deed is a property that went to a tax deed auction and did not sell. When nobody bids on it, the county puts it on an “over the counter” list. That means you can buy it directly from the county, no auction, no competition, and no waiting for auction day.
Counties do not always use the same name for this list. You might hear:
- Over the counter list
- Tax title list
- Struck off list
- County held property
- Land bank inventory
Every county sets its own rules, which is part of why this strategy is not more widely known. There are over 3,300 counties in the United States, and each one runs things a little differently.
Real Example: A 1.3 Million Dollar House for 20,000 Dollars
Here is a quick look at two properties pulled straight from a Maryland county’s OTC list, just 13 days after the auction.
| Property | Land Value | Improvement Value | Total Assessed Value | OTC Price |
| Property 1 | $247,000 | $955,000 | About $1.2 million | $20,000 |
| Property 2 (13193 Highland Rd) | $38,000 | $1,200,000 | About $1.5 million | $25,000 |
These prices are just the back taxes owed, not the actual sale price of the home. That is the whole point of OTC tax deeds. You are not buying the house at full price. You are paying off what the county is owed.
How to Find OTC Tax Deeds (Step by Step)
- Find a recent auction.
Look for tax deed or tax lien auctions that happened in the last few weeks. The freshest lists have the best chances of unsold, high-value properties.
- Check the county’s OTC list.
Visit the county tax office website or call them directly and ask if they have an over-the-counter or struck-off list.
- Get the parcel number, not the address.
County lists often skip the property address completely. Always search using the parcel or account number.
- Verify the property on the county assessment site.
Search the parcel number in the county’s Department of Assessments and Taxation tool to confirm the real address and value.
- Check the improvement value.
If land value is high but improvement value is zero, you are probably not buying a house. Always confirm both numbers before moving forward.
- Call the county to buy.
Once you confirm the property, contact the county to complete the purchase. Many counties let you buy these directly, no auction needed.
Why Buy Based on Parcel Number, Not Address
This is one of the biggest mistakes new investors make. County records sometimes label an entire parcel with just one street address, even if that parcel is really a backyard, a garage, or a small strip of land. Punching an address into a mapping tool can send you to the wrong property entirely, sometimes in a completely different state.
Always match the parcel number to the county’s own assessment records before you commit any money.
Why OTC Tax Deeds Are Good for Beginners
- No competition. You are not bidding against anyone. If the property is available, you can buy it.
- Lower starting budget. Some OTC properties cost just a few hundred dollars, though having 10,000 to 20,000 dollars available lets you move faster on bigger opportunities.
- You can do it from home. No need to travel to an auction. Everything can be done by phone or online.
- Even the worst case can pay off. In states with a redemption period, if the owner pays off the debt, you often still earn interest, sometimes around 6 percent, which is still far better than a typical savings account.
Frequently Asked Questions
It is a property that did not sell at a tax deed auction and is now available directly from the county for the amount of back taxes owed.
Every investment carries risk. The property could be redeemed by the owner, or it could turn out to be vacant land instead of a house. Always verify the parcel details before buying.
This depends on the state and county. Many places have a redemption period, often around six months, where the original owner can still pay off the debt.
No. Some use terms like struck off list, tax title list, or county held property. Always ask the county directly what they call their unsold inventory.
Auction calendars are often published by county tax offices, and tools like the Tax Lien School knowledge vault track many of them in one place.
