As a followup to our video about purchasing properties without bidding, Eduardo asks us how the prices are set for properties sold after the auction.
Transcript:
Hey, everybody! Casey Denman here with TaxSaleAcademy.com, answering your weekly question. This week’s question comes from Eduardo in Lansing, Michigan. He said, “I just watched your video on buying tax sale properties Over The Counter. How are the prices set?
Well, Eduardo, first of all, thank you for your question and for watching the video. As far as how the prices are set, it varies from state to state and even from county to county. You’re in Michigan, for example. In the state of Michigan, if a piece of property is not sold at tax sale auction, it typically becomes owned by the County Land Bank. The County Land Bank is usually controlled by the County Treasurer.
Now, the treasurer can basically sell the property how he or she wants to. Some treasurers will just say, “Here’s the price. You bring me a check and I’ll sell you the property.” Other treasurers are a little bit more strict on who they sell to. If it’s near a school or near a park, they want a proposal. They want to know exactly what you plan on doing with that property before they sell it to you.
Other states like Oklahoma, for instance, if a property isn’t sold at tax sale auction, you submit an offer to the county commissioners. The county commissioners will review your offer and then vote yes or no, depending on how much they think the property is worth and if they think they’ll be able to sell the property to anybody else for more money.
So again, it depends on the state and on the county. What I suggest you do is contact the foreclosing governmental unit responsible for tax sale foreclosure in the areas that you’re interested in investing and simply ask them, “Listen, what if a property doesn’t sell at tax sale auction, what do you do with it then and how does it work if I want to buy those properties?”
So Eduardo, hopefully, this has answered your question. If you have a follow-up question or if anybody else out there has any questions about tax sale investing, head on over to TaxSaleAcademy.com. That’s “TaxSaleAcademy.com,” and submit your question. Have a wonderful day, folks! Bye-bye.