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Sometimes land bought at auction for cheap isn't really that cheap. The sale could require the payment of years or decades of back taxes. Source - I've bought
by masonhensley 10y ago
Sometimes land bought at auction for cheap isn't really that cheap. The sale could require the payment of years or decades of back taxes.
Source - I've bought a lot of land at a city tax auction.
edit: (a lot = single lot of land)
- toodlebunions 10y agoEven with many years of back taxes that would be way under market value. A view lot like that in LA is easily 7 figures. Out of curiosity, why do you buy land? Are you a property developer?
- masonhensley 10y agoBought my parcel of land next to a large city's medical district as an investment. Might eventually build on it - tbd. Most of the tax delinquent pieces of property that I've come across that go to auction are sometimes 5-10+ years delinquent & in "blighted" neighborhoods. The patience and laws of cities and states varies in how fast they take action on foreclosing on delinquent taxes. From my basic research, a sizable number of properties fall behind on taxes due to the death of an owner and an out of state heir essentially "giving up" on the property as it wasn't worth the trouble. In the case of my property - the city acquired it via a tax foreclosure, used it as an access point for some infrastructure construction, let it sit for 10+ years after they were done with it then lumped it in with an auction. On another note - Some cities will also sell land with requirements that low income / affordable housing be build on it.