How Do Tax Deed Auctions Work? The Process Explained

I’m Ted Thomas, and today, I’ll be answering your question, “How do tax deed auctions work?” I’ll cover the entire process, from finding auctions to bidding at the auction to get amazing real estate bargains.

I’ve been involved in the tax deed and tax lien business for over 30 years. I started as an investor and became a coach, mentor and guide to thousands of people.

A lot of people want to know what are tax deed auctions and how do tax deed auctions work? What immediately comes to mind is that a tax deed auction is a method of earning a generous profit when you know how.

This is a little-known but highly lucrative business where the small or large investor can make big profits. I’ll share the secrets with you, and you’ll find it astonishing.

Table of Contents:

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What is a Tax Deed Auction?

Before we talk about how do tax deed auctions work, let’s talk about the auctions themselves.

Tax deed auctions are plentiful. Over 5,000 auctions are scheduled each year in more than 3,000 different counties, and the county treasurer is responsible for the tax deed auction where tax deed properties are sold.

What is a tax deed property? Simply stated, tax defaulted property is real estate seized by the local government and resold at a tax deed auction to pay the delinquent property taxes.

Auctions are public affairs, and anyone can attend. The auctioneer could be a county employee, or the county could hire an outside private auctioneer.

How to Find Tax Deed Properties

The tax deed auction will be announced in the newspaper and on the county website and possibly in brochures at the auction.

The auction rules, auction times and places will be explained on the website along with how to get a list of tax delinquent properties for sale.

In small population counties, 12 to 25 properties may be available. Meanwhile, large population counties may have hundreds or even thousands of properties available.

If you want to know how do tax deed auctions work, the county website is an excellent place to start since the rules are posted there and can differ from county to county.  From the buyer’s perspective, a tax deed auction requires research and understanding of the auction process and rules.

get big bargains at tax deed auctions

Big Bargains at Tax Deed Auctions

How do tax deed auctions work for investors? For savvy investors, they’re a goldmine.

At tax deed auctions, properties are sold for huge discounts of 60%, 70%, and 80% below the tax assessed value.

I even have many students who actually purchased at 90% below the tax assessed value!

Tax deed auctions sell to the highest bidder, and multiple properties could be on the tax delinquent properties for sale list. The starting price at the auction is usually slightly above the delinquent back taxes plus late fees.

Mortgages, Liens and Encumbrances on Tax Deed Properties

How do tax deed auctions work for investors who don’t want to be stuck with making mortgage payments on their investment properties? Well, tax deed properties are sold with no mortgage, trust deed or security deed.

The county will delete the mortgage from the property files. Yes, the treasurer wipes the mortgage out. You receive your tax deed property mortgage-free.

Many of the liens are also deleted from the property records. However, you should be cautious and not assume all of the liens are cleared and ask many questions. Research will go a long way to giving you confidence.

I have a free gift for you that will show you how to profit with tax lien certificates and reveal the secrets of tax deed investing. Be sure to get your FREE gift today.

How Do Tax Auctions Work?

How do tax deed auctions work? The auction process is not complex, but things move fast and can change on a dime.

Alert investors will listen closely and watch the treasurer who has the authority to change rules and prices instantly. This could mean dropping the price by many thousands of dollars.

My point is, the treasurer has power and may stop the process of the auction at any time. Keep in mind, the treasurer needs money to fund the many needs of the county government.

The tax deed auction moves quickly. This is no time to be learning how. Before buying a tax deed property, you must know what you want to do before the auction starts.

If you are not prepared, do not raise your hand. If you have not made financial arrangements, don’t raise your hand. The auction day is too late.

The auctioneer will expect you to follow protocol. The county government will use the full power of the law to restrain bidders who violate the rules or fail to pay for a property they have bid upon.

If you haven’t been to an auction, attend one and watch only. Many auctions are conducted online, so they are easy to observe.

how do tax auctions work

The auctioneer will announce each property by tax number. This could be called a different name like folio number or tax assessed property number. Basically, it’s the social security number of the property.

What are the risks of buying tax deed properties? I have personally watched many bidders lose thousands of dollars, overbidding or bidding on wasted and destroyed properties because they didn’t do their homework.

My point is tax deed auctions are no place for guess work. The auction process is serious business. This is no time for distractions or social business. Big money is changing hands.


We hope you enjoyed today’s  lesson, “How Do Tax Deed Auctions Work?” Newcomers with the proper guidance have the ability to make $25,000, $50,000 and $100,000. We have dozens of documented cases histories of people doing exactly that.

Tax deed auctions can be outrageously profitable. The most important point we can make is that you make your money when you buy, not when you sell. At tax deed auctions, you can purchase real estate for 10, 20 or 30 cents on the dollar and get the property mortgage-free.

Tax deed auctions can be hugely lucrative if you know how. If you’d like to know more about how to buy property with delinquent taxes, Ted Thomas provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops, web classes, and personal coaching with certified coaches.

You can learn how to reap the huge rewards from tax lien and tax defaulted property investing! Get started today by taking advantage of this Free Gift from Ted. Act now, it costs you nothing and will give you a big head start!

how do tax deed auctions work by Ted Thomas

Ted Thomas is America’s Leading Authority on Tax Lien Certificates and Tax Deed Auctions, as well as a publisher and author of more than 30 books. His guidebooks on Real Estate have sold in four corners of the world. He has been teaching people just like you for over 30 years how to buy houses in good neighborhoods for pennies on the dollar. He teaches how to create wealth with minimum risk and easy-to-learn methods.

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Ted Thomas

Ted Thomas is America’s Leading Authority on Tax Lien Certificates and Tax Deed Auctions, as well as a publisher and author of more than 30 books. His guidebooks on Real Estate have sold in four corners of the world. He has been teaching people just like you for over 30 years how to buy houses in good neighborhoods for pennies on the dollar. He teaches how to create wealth with minimum risk and easy-to-learn methods.

The Ted Thomas Difference:

  • Ted is recognized as America’s Tax Lien Certificate & Tax Deed Authority and has been helping people with investing in tax defaulted properties for over 30 years.
  • Ted has built a team of certified coaches that have 70 combined years of auction experience and are available to his students by phone to guide and mentor you to avoid getting overwhelmed or worse, losing money
  • Ted has ironclad PROOF that what he is teaching you does work. With hundreds of successful students providing testimonials and a 4.9 Google rating which is unheard of in this industry.
  • Ted and his staff don’t hide behind a website; they can be reached during office hours at 321-449-9940.

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