Watch This If You’ve Never Been To A Tax Lien or Deed Sale (5 Important Tips!)

Last Updated on August 28, 2025

5 Steps to Prepare for Your First Tax Lien or Deed Sale

Before you bid on a tax lien or deed sale, just being excited isn’t enough. The Josh and Cory say it’s really important to do your homework first. You need to research well, practice, and get ready carefully. If you follow these steps, you can lower your chances of making mistakes and feel more sure about what you’re doing

1. How Do You Find Tax Lien or Deed Sales and the Rules?

Start by checking your county’s website. In a search engine, type your county name along with “tax lien sale” or “tax deed auction.” Many counties have special pages that show dates, lists of properties, and how to sign up. If you can’t find enough info online, try downloading the county tax code as a PDF. You can also call the county clerk and ask where to find the rules. Also, some tax lien books have lists that can help you reach the right person

2. Should You Only Attend Sales in Your Own State?

You don’t have to start far away. It’s better to check out sales that are close by, even if they are in another state. Being there helps you learn how auctions work. You don’t have to bid on anything right away. Just watching is super helpful! You can see how people bid, how deposits are handled, and when payouts happen. Once you feel okay about it, you can go to sales in other places

• Check if your state uses liens or deeds (laws vary).
  
• Look for auctions you can drive to in a few hours.
  
• Attend at least one sale as an observer before investing.
  

3. What Research Should You Do Before Auction Day?

When you find a good sale on a property, ask the county for the list of homes. Choose a few and drive by to see them. This quick “drive-by” check helps you spot big problems like broken windows, fire damage, or piles of junk that pictures online might not show. Look into the property’s tax history and how much it’s worth. Also, check out the neighborhood. The speakers say it’s really important to visit some properties to feel sure about your choices

Checklist:

• Obtain the official property list (often downloadable in Excel or PDF).
  
• Choose 2–4 properties and visit their locations.
  
• Note conditions, neighbourhood appeal, and nearby amenities.
  
• Verify outstanding taxes and any liens with the county.
  
• Compare assessed values and estimated repair costs.
  

4. What Form of Payment Do Counties Accept?

Payment rules can be different depending on the county. Most of the time, you need to use cashier’s checks. For example, in Philadelphia, they ask for a 10% deposit in a cashier’s check made out to a specific person. They might not accept personal checks or cash. Other places, like Harris County in Texas, also have similar rules. If you’re bidding in online auctions, you may need to use wire transfers or electronic deposits a few weeks before the auction. To make sure you don’t miss out on your bid, check the payment instructions with the county staff. Get ready with the exact forms they ask for.

5. Why Do You Need a Clear Exit Plan?

Buying a lien or deed can make you money, but you need to know how it will help you first. Think about what you want to do. Will you hold the lien for interest? Will you sell it? Or will you turn the deed into a property to rent or sell? Before you place a bid, figure out how much it will cost to fix up the property. Also, think about how much money you can make from it. Having a solid plan helps you decide your highest bid and keeps you from paying too much. Talking to other investors or finding a mentor can be really helpful too. They can give you good advice based on their experience.

Key considerations:

• Will you flip the property, rent it, or keep the lien for interest?
• How will you cover repair costs and property taxes after purchase?
• Do you have contacts (real estate agents, contractors) to help?

Step‑by‑Step Summary

FAQs