Last Updated on October 17, 2025
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If you want to get into real estate but think it costs too much, government land auctions may surprise you. Local governments sell off land and houses when people stop paying property taxes. Sometimes these properties sell for as little as a few dollars. In a recent live stream, we showed how buyers picked up land for $2 and $150. This explains how these sales work, shares stories and offers simple tips so you can start safely.
What Are Government Land Auctions?
When someone doesn’t pay property taxes for several years, the county can take the land and sell it to get back the money. These sales happen at public auctions run by the county treasurer or tax collector. The starting bid usually equals the unpaid taxes and fees. There are two main kinds of auctions in many states:
| Type of sale | How it works | Time to redeem |
| Treasurer sale | The county sells a tax lien. The high bidder pays the back taxes and gets a certificate. They do not get the property right away. The owner has time to pay back the taxes plus interest to keep the land. | In Indiana the owner has one year to pay back the taxes. |
| Commissioner sale | If no one buys at the treasurer sale, the land moves to a commissioner sale. Starting bids may be even lower. Because nobody wanted these properties the first time, they often need more research. | In Indiana, the owner has only 120 days to pay back the taxes. |
Winning an auction does not mean you can move in or start building. You only hold a lien until the redemption period ends. During this time, you can’t enter the property, but you may mow the grass or board up windows so the lot stays clean. If the owner does not pay you back by the deadline, you can ask the court for a deed so the land becomes yours.
Real Examples
We’ve looked at a commissioner sale in Indiana where several lots sold for $2 and $150. The low prices attracted so many calls that county staff asked the hosts to remind viewers not to overwhelm their phones. John said he bought two lots for $180 and $420 and thinks they are worth about $5,000 each. Another buyer got a house for $4,900. Homes in the same area have sold between $15,000 and $65,000, so there is room for profit if the buyer fixes it.
Why would the county accept such low bids? Once property taxes go unpaid for years, the county just wants the land back on the tax roll. As long as the bid covers basic costs, they would rather sell it than keep it. But a low price can be a warning. The house might already be gone, the lot could be landlocked, or there may be big repair bills. In the stream, John ordered a photo of a Florida property and discovered the house no longer existed. That’s why research is important.
How to Take Part in Government Land Auctions
- Do your homework first.
Counties publish lists of properties that will go up for auction. Look up the parcel number to find the address, assessed value and any code violations. Call local offices to check for demolition orders, liens or zoning problems. When possible, drive by or hire someone to take new photos. Abandoned buildings often need repairs or environmental cleanup.
- Know the rules.
Each state and county has its own procedures. In Indiana, you must register, pay a deposit and then pay the full amount shortly after the auction ends. If you win, you must send official notices to the owner and anyone else who may have an interest in the property. Missing these steps can void your purchase.
- Set a spending limit.
Your bid must at least cover the back taxes, penalties and fees. Decide your maximum bid by looking at what similar properties sell for and subtracting repair and legal costs. Remember that clearing a title through a quiet title action or title certification can cost around $2,000.
- Bid carefully.
Auctions can be online or in person. Watch how others are bidding and stick to your budget. After you pay, you get a certificate (for a lien sale) or a deed (for a deed sale) through your account.
- During the waiting period.
If the owner can still redeem the property, you must pay any new taxes that come due. Keep proof of those payments so you can get reimbursed if the owner pays off the debt. Send all required notices on time. If the owner does not pay by the deadline, ask the court for a deed and work on clearing the title.
Be Aware of Risks in Government Land Auctions
Buying land or a house at a tax sale can be rewarding, but it does carry risks. Here are common problems and ways to reduce them:
| Risk | Why it matters | How to reduce it |
| Liens and mortgages | Other debts may still attach to the property even after the sale. You might have to pay them. | Search the title and talk to a real‑estate attorney before bidding. |
| Poor condition | Vacant or vandalized houses may need costly repairs. Land may have environmental problems. | Visit the property or hire someone to take recent photos. Budget for repairs and possible cleanup. |
| Legal mistakes | Tax sales must follow strict rules. If you miss a notice or deadline, the sale could be canceled. | Learn your state’s procedures and send all required notices on time. |
| Changing markets | Property values can go down after you buy. | Look at recent sales and avoid overpaying. |
| Competition | Big investors often bid at tax sales, raising prices. | Look at less popular counties or off‑season auctions and set a firm budget. |
Counties also warn that tax sales are final. There are no refunds. You must respect the redemption period and cannot move into the property until you own it outright. If you ignore these rules, you could be charged with trespassing.
Ways to Profit
The hosts of the stream suggested three simple strategies once you get a tax sale property:
- Sell to a neighbor or builder. Vacant lots are easy to sell to the owner next door. They may want to double their yard. You can even offer monthly payments (seller financing) to make it easier for them.
- Hold it for growth or rent. If the area is growing, the land could become more valuable over a few years. Some investors rent empty lots for parking or storage while they wait.
- Build something. Putting up a small house or cabin can raise the value of the land a lot. Check local building rules and get permits before you start.
Keep in mind that flipping land quickly means selling below market prices to attract buyers fast. List it online, talk to neighbors or speak with local builders. Always set aside money for closing costs, title insurance and any legal work.
Frequently Asked Questions
No. Buying a tax lien only gives you the right to collect back taxes plus interest. You only get the property if the owner does not pay by the deadline and you follow the legal steps to obtain a deed.
It depends on your state. In Indiana, the owner has one year after a treasurer sale and 120 days after a commissioner sale. Some states allow up to five years.
Yes. Many counties require bidders to sign up ahead of time, pay a deposit and show they have enough funds. Read the instructions carefully before the auction.
If the owner redeems the property, you get back what you paid plus interest. You do not get the property.
Yes. Some properties sell for less than $200, but you should still budget for research, title work and legal fees.
Conclusion
Government land auctions give people with small budgets a way to enter real estate. The stories of $2 and $150 lots show that big savings are possible. But cheap prices often mean extra work. You need to research each property, follow the rules and set a clear plan. With patience and care, buying at a tax sale could lead to a good flip or a long‑term investment.
