Transcript:
Hey there, it’s Casey Denman with TaxSaleacademy.com and welcome to our weekly tax sale question segment. Before we get to this week’s question, if you ae looking to learn more about tax sale investing, don’t forget to subscribe to our channel and check back often so you don’t miss out on future tax sale training videos.
Alright, today’s question comes from Devon: Devon wants to know “Our registration fees for tax sale auctions common?”
First off Devon, thank you so much for submitting your question.
So, a registration fee is just that, it’s a fee required when registering for an auction. Some auctioneers used to call it an auction paddle fee, although it’s simply referred to as a registration fee in most areas now. When you register for the auction you’ll need to provide all of the registration information and that required fee in order to bid.
Ten or fifteen years ago it was extremely rare to come across a tax sale auction that required a registration fee. But, over time, it’s become somewhat of a profit center for many counties. I’d say that the majority of counties DO NOT charge registration fees, although more are beginning to every year.
So, a few things about this fee:
– First off, the amount can vary greatly. I’ve seen as low as $1, which literally pays for the paddle at in person auctions. I’ve also seen fees as high as the $500 to $2500 range. The average seems to be around $50 at the time of this recording in the areas that do charge registration fees. Obviously, certain states have higher registration fees than others.
– Secondly, this registration fee in some areas is applied to your purchase almost like a deposit, which we’ll touch on momentarily. IF you do not purchase anything or do not bid, it might be forfeited so keep that in mind.
– And lastly, this is obviously something you want to take into serious consideration before moving forward with an auction. If you have a steep registration fee and you are only interested in one property, then it might not be worth it. So be sure to weigh the pros and cons.
To learn about registration fees in your area, simply go to your county’s website or contact the department responsible for tax sales in that area and ask. Very simple.
Now, just so there is no confusion. There is a major difference between a deposit and a registration fee. The registration fee is usually nonrefundable and required to be able to REGISTER. The deposit on the other hand is going to be required in order to BID Or win a property and WILL definitely go towards the purchase price of the property. MOST areas will REQUIRE a deposit prior to bidding or immediately after you win a property. The MAJORITY of areas DO NOT require a registration fee, yet. So don’t confuse the two!
So, Devon hopefully this helps. If you have a followup question or anyone else watching this video has a question, feel free to leave it below this video or any of our other videos here on YouTube.
And if I can be of any help with your quest for tax sale success, there are a bunch of links in today’s video description, including one to our primary site at taxsaleacademy.com.
Take care folks, see ya!