So, you have decided to invest in tax liens. However, before you can buy a distressed property, you will need to join a tax lien or tax deed auction within your locality. More so, there are other people present during the auction -- competing for the properties at auction.

For you to avoid or prevent any losses, here are some reminders to consider:

BeforeGo to your local office - This is first place to start before you can join the auction. Going to your local county office can help you be informed about the auctions that will happen. The local office will release a list of distressed properties on their bulletin board and their website. Because of anticipated demand, the properties will be due for auction. This will put eager buyers to outbid each other.

Inspect the properties for sale - Other auctioned houses do not allow would-be bidders to view or inspect the properties while there are other auctioneers who provide a catalogue or allow inspection. Take this seriously; most investors end up disappointed because of not inspecting the properties they purchased at an auction.

Some auctioneers allow open houses or inspections of the properties, but this are for a limited time only. Based on the United States Department of Treasury, the bidder is invited, urged and cautioned to inspect the property before submitting a bid. Failure to do so shall not result to cancellation of sale.

Additionally, buying properties under tax deed auction follows the principle of "as-is where-is" basis. This means that the property - its location, features, and measurements - will be sold on its existing conditions.

Bring enough money - Bidding means competitive purchasing. Eager buyers will do whatever it takes to buy and acquire tax liens for sale at an auction. Also, auctioneers will require bidders to pay them immediately, or within 24 hours. Otherwise, the auctioneers will sell the properties to other bidders.

Also, provide at least ten percent of the expected amount of the property. If you win the bid, auctioneers will require you to add ten percent to the original amount of the property.

Set your limits - As aforementioned, an auction could be a competitive arena for buying properties. For example, if a product has a starting bid of $100, increments of $10 will be given by the other bidder. If the starting bid is $1,000, increments will be $100. Be disciplined enough to set a limit, so you will not be disappointed or think irrationally about
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During
Be on time - What is common between you and other bidders? Both parties want to get only the best. Early birds will always get the worm, and this applies in joining auctions too. Registration may sometimes take time, and choosing the best place to sit is also a factor during the actual auction.

Bring at least two sources of identification - when you arrive at the auction house, you need to bring proper identification. Most states require participants to be at least 18 years of age.

Try to get the auctioneers' attention when bidding - Getting noticed is important in any bidding. When the bidding starts, the auctioneer will take notice of legitimate gestures to know if he needs to continue with the process, or just award the properties for auction.

Some acceptable gestures include raising your hands or nodding. Blinking, winking and other secret expressions may not be considered by the auctioneer. Additionally, the auctioneer may not know that you are bidding.

Again, always set your limits - This may sound repetitive but setting your limitations helps you during tax deed auctions. First, it allows you to be objective when bidding on a property. Second, it saves you from compulsive bidding and buying. (This is true especially if the other bidders continue to drive prices to insignificantly high amounts.) Third, being on a specified target keeps you on track with your objectives.

After
Read the papers before signing - Before you sign the papers, make sure that you read and understand what the agreement states. Due to its technicality, it is recommended that you consider a third-party advice before anything else.