subject: The Advantages Of Delinquent Tax Sales [print this page] When most people look to purchase property, they tend to go the traditional route. This includes hiring a real estate agent and looking up home and property listings on the computer or in the newspaper. For some, this is simply their preferred route. Then, there are those who aren't aware that there are other options they can pursue, such as participating in delinquent tax sales. Some people don't realize just how many advantages these auctions can afford them.
For instance, one of the good things about delinquent tax sales is that they provide a quick process. There are no real estate agents to go through. There are no home inspections or back and forth negotiations with sellers. On the other hand, the more traditional route can actually take weeks or even months to complete. This leaves the prospective homeowner uncertain about their future as far as where they will be living. Participating in these types of auctions allows people to purchase and occupy their property in less than a week.
Another advantage that delinquent tax sales provide is that they allow people to save money. This is one reason that many people are able to purchase more than one property at a time. Instead of paying $150,000 for a home, someone could get a piece of property in the same condition for $75,000.
Lastly, these events also allow people to get a better return on their investments. Every home that is purchased is an investment, whether through auctions or delinquent tax sales. However, some people never really see a substantial return. These auctions give people a better opportunity to make more money off of their property if they ever decide to sell it.
For example, imagine if someone purchased a home the more traditional way for $200,000. Years down the road, they decide to sell it for $250,000. That is a $50,000 gain. Of course, this would be a good return in anyone's eyes. However, purchasing the property through an auction would've allowed them to make even more money. They could've found a home in the same condition for $150,000. If they sold it for $250,000, they would have made a $100,000 gain.
Now, this isn't to say that the non-traditional route is always the best route to take. If someone doesn't have the money readily available, then they wouldn't be able to participate in these types of activities. In their cases, it may be better to have a mortgage and a monthly house note. On the other hand, if someone has the funds handy, it may be a better idea to participate in property auctions.
