Due Diligence: Researching Properties Before Bidding
When it comes to tax deed investing, the old adage “knowledge is power” couldn’t be more accurate. Before you bid on a property, you need to do your homework, which means digging deep into the details.
In this post, we will explore the importance of thorough research, how to access county records, and how to assess property value-practical skills that every tax deed investor should master.
The Importance of Thorough Research in Tax Deed Investing
Tax deed investing can be a wild ride, full of unexpected twists and turns.
Walking into an auction and getting a property for a fraction of its market value can look like hitting the jackpot, but without thorough research, the deal might become a trap.
With thorough research, you can anticipate potential pitfalls and make informed decisions.
Thorough research helps avoid surprises like unpaid liens, structural damage, or zoning issues.
You must ensure the property is worth what you are paying and doesn’t come with baggage you did not bargain for.
Carrying out your due diligence on every property before investing helps you make informed decisions and ensures a successful investment.
Accessing County Records as an Investor
County records are your best friend when it comes to tax deed investing and research. They are a rich source of information that can help you make informed decisions about which properties to bid on and which to avoid.
County records are your best friend when it comes to tax deed investing and research. They are a rich source of information that can help you make informed decisions about which properties to bid on and which to avoid.
County records give you insights into important details about the property. You get to know the property’s tax history, whether it has any outstanding liens, and whether the property has any legal issues.
You can often find this information online, but sometimes, it might require going to the county courthouse.
Start by searching the county assessor’s website for the property’s parcel number.
From there, you can access property tax records, see if there are any unpaid taxes, and check for liens or judgments. You can also look at property maps and records of past ownership.
Property Value Assessment in Tax Deed Investing
Knowing the property’s true value ensures you do not overbid at auction. This involves comparing the property to similar ones in the area, considering its condition, and factoring in any potential repair costs.
This information helps you bid more effectively.
If you bid more than the property is worth, you could end up with little or no profit, which could even be a loss. When you know the property’s value, you have the confidence to bid higher if you know it will still be a good deal.
Understanding the selling prices of similar properties in the area can guide your bidding strategy. Online real estate platforms like Zillow or Redfin are invaluable resources for this.
While assessing the property, consider the property’s condition; if you cannot inspect it in person, try to get as much information as possible through photos, satellite images, etc.
Assessing property value should be an intentional step in the journey of tax deed investing. You need to consider factors like location, condition, and market demand. But with the right tools, expertise, and information, you can make an educated estimate and avoid overpaying for a property.
Tax deed investing can be highly rewarding, but it’s not a venture to enter blindly. Diligent research acts as your safety net, helping you avoid costly mistakes and ensuring you make smart, informed decisions.
