Online Auctions: A Win/Win!

Online tax lien and tax deed auctions have become available in more and more counties across the country. Counties have realized that by going online, they have more investor participation and collect a larger percentage of their liens which benefits the bottom line for county budgets. What does this mean for you as an investor? Simple…it’s amazing. It’s investing at your fingertips.

Most counties outsource their online auctions to companies such as Bid4Assets, Real Auction and Grant Street Group. This means that once you register for one county, you are actually able to bid on several different auctions as they come available. By having one registration i.d. and password, you will streamline your investing process.

Other counties do use their own systems and are generally quick and easy to use. As with live auctions, online auctions require some sort of deposit (usually $250-$500 or more), or they require that you come in with 10% of the estimated amount that you plan to invest. In a nutshell, make sure you are prepared before you even bid on a property.

Once you are registered, on most sites, you then have access to the property lists. Usually, these lists and registration for online auctions opens up 4-6 weeks before the auction begins. Some auctions, such as Michigan, only last one day (they are held simultaneously with the live auction) while others may last 1-2 weeks or even a whole month. Online auction rules and procedures still must follow state statutes and advertising is still required in most states.

As with ANY auction that you attend, whether live or online, it is still crucial that you practice your due diligence. Online auctions usually offer enhanced lists that will allow you to really get an up close and fairly personal view of the property, but think about connecting with local real estate agents to find out what the home’s market value would be. Always be sure to take the same steps that you would with any investment…investigate, investigate, investigate.

©Rachel A. Seidensticker is an administrator of the comprehensive database http://www.tax-lien-database.com. For more information on tax lien and tax deed investing, visit this dynamic website which is geared for investors of all types!