Last Updated on September 9, 2025
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There is a reason we always do great tax sale property research before we buy it. There is a reason we explicitly teach our students as well.
The horror stories are constantly growing in number about people who start investing with Tax Liens & Deeds and get burned really badly.
Yet, Tax Liens & Deeds can be extremely safe, secure and predictable, but you need to know what you’re doing…
You see, all the rookie mistakes and people not learning the basics beforehand give the rest of the business a really bad rep, because those people then go and slander the potential of this business.
Is it a perfect business? Nope. But show me a business model that is perfect and I’ll give you every last penny in my bank account.
The truth is, there is no perfect business…. It’s what you make of the business, and how you stick with it when the going gets tough.
Tax Sale Property Research: How to Avoid Mistakes
Skipping research on a tax sale is like walking into a horror movie. The lesson is clear: tax sales can make money if you know the rules and do your homework.
Why is tax sale property research so important
When people do not pay their property taxes, local governments can sell either the lien (the right to collect the taxes) or the deed (ownership). These sales often start low, but that does not mean they are good deals. The current value of the property can be less than the tax bill, and other debts or fines may stay with the land. Abandoned buildings can be unsafe or cost a lot to fix. Tax sales come with no promises, so buyers must find out the problems themselves. That kind of homework is called Tax Sale Property Research.
Another rule to know is the redemption period. This is the time when the old owner can get the property back by paying the taxes and interest. Some states give months or even years for redemption, while others, like Oklahoma, have no redemption period. Knowing these local rules helps you make a safe plan.
Essential tax sale property research tasks
Below are five basic tasks for Tax Sale Property Research. Change them to fit your state’s laws.
- Learn the rules. Read your state’s tax sale laws and county rules. This tells you if you are buying a lien or a deed and if there is a redemption period.
- Look for other debts. Check county records for mortgages, federal tax liens, homeowners association dues and city fines.
- See the property. Drive by or hire someone local to make sure the property exists, has access and is not in bad shape. Use maps to look at its size and neighbours.
- Think about value and costs. See what similar properties sold for and count your costs, such as taxes, insurance, repairs and legal fees.
- Prepare for the sale and after. Register early, decide your top bid and be ready for the owner to pay the taxes at the last minute. If you win, you may need to clear the title or remove tenants.
Quick reference table
| Step | Purpose |
|---|---|
| Learn rules | Know if the sale gives you a lien or a deed and if there is a redemption period. |
| Search records | Find mortgages, tax liens or other debts that may still apply. |
| See & map | Check that the property exists, has access and is not in a floodplain. |
| Know if the sale gives you a lien or a deed, and if there is a redemption period. | Look at sale prices for similar properties and include costs before deciding your bid. |
Simple how‑to guide
- Get the list and records.
Download the auction list and check deeds, mortgages and liens.
- Visit or view the property.
Drive by or hire a local inspector and use maps to see the location.
- Ask about zoning and the environment.
Call planners to learn what you can use the property for and if it sits in a floodplain.
- Make a simple budget.
Compare similar sales and add taxes, repairs and legal fees.
- Register, bid and follow up.
Register before the auction, stick to your maximum bid, and, if you win, clear the title and handle tenants.
Frequently asked questions
A lien sale gives the buyer the right to collect back taxes and interest; a deed sale transfers ownership, subject to any redemption period.
No. Most owners redeem by paying their taxes. Only if they fail to redeem can the lien holder foreclose.
Conclusion
The takeaway is clear: always do your tax sale property research before you bid. Tax lien and deed sales can be profitable, but they are buyer‑beware transactions. By learning the rules, checking records, looking at the property, thinking about value and costs and planning your bid, you can avoid surprises and make smart choices. Success in tax sale investing comes from careful due diligence, not luck.
