I'm curious to hear real life experience/advice from folks who have purchased land at a county tax auction in Texas. Or real estate experts who've handled cases for clients.

Does redemption by original owner happen frequently according to law? Or does it end up getting messy and contested in court? If it's the former, then hurray! that sounds like 25% ROI; but if it's the latter, I want no part. Or perhaps it doesn't happen often at all which is also a favorable outcome.

Also - am I right in reading that you'd have to hold the property for awhile (I've seen 7 years) in order to clear up the title and make it insurable for resale?

Finally, how much over minimum bids will the auction go? Min bids look nice, but if bids get remotely close to appraised value, the whole deal gets a lot riskier for me.

What else has/could go wrong? - beyond the inherent risk of overpaying for garbage property in the auction, of course.

Thanks in advance.

(FYI - I've cross-posted in Real Estate)

We bought a 4 acre tract at auction 30 years ago. Trashed out old country house that had been picked through. We found out the Small Business Admin. had a lien on it and wanted it back. Easiest money we had ever made.

deadbq03 said:

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I'm curious to hear real life experience/advice from folks who have purchased land at a county tax auction in Texas. Or real estate experts who've handled cases for clients.

Does redemption by original owner happen frequently according to law? Or does it end up getting messy and contested in court? If it's the former, then hurray! that sounds like 25% ROI; but if it's the latter, I want no part. Or perhaps it doesn't happen often at all which is also a favorable outcome.

Also - am I right in reading that you'd have to hold the property for awhile (I've seen 7 years) in order to clear up the title and make it insurable for resale?

Finally, how much over minimum bids will the auction go? Min bids look nice, but if bids get remotely close to appraised value, the whole deal gets a lot riskier for me.

What else has/could go wrong? - beyond the inherent risk of overpaying for garbage property in the auction, of course.

Thanks in advance.

(FYI - I've cross-posted in Real Estate)

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I've bought plenty from tax auctions. You have things mostly correct.

The redemption from original owner is law. It doesn't happen that often. If it does, you make easy 25%. I can't remember the time frame but seem to remember six months. The only way things would get messy is if you are dumb. They have to pay for any REQUIRED improvements. Same thing, cost plus 25% for improvements.

If it's a city lot, you will have to mow it so the city doesn't fine you for tall grass. If the roof is falling in and the city mandates that you fix it for safety...Same thing. The original owner will pay for all the mowing and roof repairs, +25%.

It's unlikely that painting the house or replacing carper would be required.

There wouldn't be much justifiable improvements to rural acreage. I wouldn't put any money into rural property until the redemption period is over.

The state law is pretty simple. The FIRST time that property goes up for tax sale that base price is set in stone. It goes for either appraised value or tax/penalty owed - whichever is greater. If it fails to sell, they can sell it the next time at any price.

birdman said:

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The redemption from original owner is law. It doesn't happen that often. If it does, you make easy 25%. I can't remember the time frame but seem to remember six months. The only way things would get messy is if you are dumb. They have to pay for any REQUIRED improvements. Same thing, cost plus 25% for improvements.

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I have purchased one and it was filled with tons of rules. Mine was taken by a bank after taxes not paid b/c owner died...due to owner dying and such i had a 48 month window of redemption per the title company.


Another crazy one was that i did not win the bid. I was called two days later with an offer to purchase land at original bid and not the final bid b/c the winner of the bid was forced to back out. So i got a deal by 11k.

Many thanks!

My wife is temporarily spared my whims here because we've got vacation booked during our county's next auction, but I plan to attend the following one just to watch the process and see how many whales show up and bid on things.

I'd be looking for an unimproved lot/land for my first time, for sure. I want no part in having to kick out an owner/renter/squatter.