In our weekly question segment we answer Tyson’s question, which was “How do you deal with the competition at tax sale auctions?” Watch the video for our answer!
Transcript:
Hi! Casey Denman here with TaxSaleAcademy.com, answering your weekly question. This week’s question comes from Tyson. And he says, “How do you deal with competition from other bidders?”
Tyson, great, great question here. There are a lot of people that really just stress out about competition at tax sales. Here’s what you do about the competition. You don’t worry about it. You shouldn’t stress over something that you can’t control. I don’t care what tax auction you go to. There could always potentially be somebody that shows up with more money than you have. There also could be somebody that potentially shows up and wants to spend more money on a specific property than you have budgeted. Otherwise, you’d win every single piece of property that you’re interested in. And well, it just doesn’t work like that, unfortunately.
Now, what you’ll eventually discover, however, is that certain property types or certain areas or certain subdivisions will always seem to go for more money than you’re willing to spend on the property. Now, what you can do here is you can make note of that and you can review these past auction results. That way, you don’t waste your time researching pieces of property when you know they’re going to go well above and beyond your maximum bid amount.
Now, I wish I could just give you a list and say, “Here’s a list of all the properties and all these properties always seem to sell for too much money.” It just isn’t that easy. What other people pay for properties is out of my control and it’s out of your control. And a lot of times, their bid amounts on certain areas or certain property types will evolve over time. So one subdivision that might not sell for anything right now, six months from now, it could be selling for maximum bid amounts of well above what you’re willing to spend. So these evolve over time. So just review your auction notes and kind of study them and kind of follow the trends of each tax sale auction that you attend.
Now, what we have to remember here is that there are tens of thousands of properties that are auctioned off each and every single year. So if you go to a tax sale auction and it seems like there’s a load of competition there and you’re not getting the property that you want to get, don’t stress about it, don’t worry about it, because I promise you, there’s tens of thousands of other properties out there that you will potentially be able to win.
So Tyson, I hope this has answered your question. If you’d like to follow up, or if anybody else out there has any questions about tax sale investing, head on over to my website at TaxSaleAcademy.com. And you can do that by clicking the blue link at the bottom of this video. Again, it will take you to TaxSaleAcademy.com. Submit your question, and it’s very possible I’ll give you a video response just like this one.
Take care, folks! Bye-bye.