Why Are Properties Sold At Tax Auctions Not Of Any Interest To Real Estate Agents?
Because there is no real estate commission to be made in that sale. They won’t work for free, and I don’t blame them.
4 Responses to “Why Are Properties Sold At Tax Auctions Not Of Any Interest To Real Estate Agents?”
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Many of the realtors with whom I’m acquainted own quite a bit of investment property – they buy great deals themselves when nobody else does – maybe ‘before’ anyone else does when it’s a real steal but state laws should prevent that sort of self-serving dealing when a contract is involved.
They probably have many easier opportunities than those available through the auctions. The key to real estate is turnover – money isn’t made holding onto non-productive property.
My 95 year old uncle and ex-realtor (big time) once sold a piece of property to a local MacDonald’s franchisee that was owned by a local cemetery that hadn’t been considering selling it. He already knew all the people involved (contacts, including political, are important in sales), saw the potential of a good corner lot that was underutilized and earned the commission on the transaction by pointing out the potential that had been unrealized until then.
That is a general statement. There probably are many real estate agents that invest in tax liens. The important thing to note though is that houses are not sold at tax sale. Liens are sold at tax sale. Each jurisdiction has specific rules as to how to foreclose a tax lien. Often this takes well over a year during which time a homeowner has the right to pay the taxes plus a small interest payment to release the lien.
Tax liens can be a great investment tool if you know what you are getting into. In my opinion, they are generally not a great way to buy houses as some of the get rich quick books may tell you.
Properties are sold at tax auctions because the property has been determined to be in default of taxes owed. They are sold to recoup the taxes and any extra they can get. They are not sold through a Realtor because there is no commission involved in the sale, therefore Realtors cannot make anything on the sale.
So true, Ben. However, if you buy a tax deed it could possibly face ownership of the home and a realtor would come in very handy. This could potentially be a great investment because you can usually buy the tax deed for less than the house would sell for, but this requires a lot of research of the market the house is in. A realtor could really help in this instance. http://www.Tax-Lien-Database.com is a great source of information for tax lien/tax deed investors of all levels. For those still learning, they have several FREE eBooks available. For advanced investors, they have all the contact information and listings to successfully invest across the country. For corporations and large investment funds, they have local investment agents and real estate agent contact information. They even have an online market for investors to buy and sell tax liens/deeds between themselves. It’s a great resource!