How to Buy Real Estate at Government Auctions

A smart real estate investor looks for bargains in realalmost twice that amount! Another example is a gas
estate; a diamond in the rough. But trying to find thesestation and dry cleaning storefront that sold outside of
bargains can be difficult to do. Government auctionsChicago for $42,400! These auctions were both
and county tax sales are just one way of finding realseized by the federal government for failure to pay
estate well-below market value. Some of thetaxes.
properties will need some minor repairs, but you canCounty Tax Sales
find real estate property for pennies-on-the-dollar. TheIf you fail to pay your county property taxes, by law,
U.S. Marshals Service (USMS) sells property that thethe county has the right to seize your property and sell
federal government orders to be sold. Countyit at government auction to recover their losses. These
governments also sell properties that have failed toare known as county tax sales. Anyone can attend
pay their property taxes.these auctions and bid on property. Traditionally, these
The U.S. Marshals Servicesales have taken place on the county courthouse
The U.S. Marshals Service (USMS) offers a widesteps. But more and more counties are starting to
variety of property for auction to the public which hashave their auctions online. It is very important when you
been forfeited or ordered sold by federal court orderare considering buying property at county tax sales
under laws enforced or administered by the Unitedthat you perform your "due diligence." Due Diligence is
States Department of Justice and its investigativethe process of investigation, performed by investors,
agencies. The U.S. Marshals Service sells diverseinto the details of a potential investment, such as an
assets such as high-end vehicles, collector cars,examination of documents, inspection of the property,
residential, commercial and agricultural real estate,and performing a title search on the property. This is
timeshares, sport fishing vessels, aircraft, artwork,imperative as most government auctions sell their
jewelry, financial instruments and much more. Much ofproperty "as-is" and it is up to the buyer to make sure
this merchandise is sold online in online auctions. Theyall the details are taken care of before they bid.
have properties listed all over the country ranging fromBuying property at government auctions can be an
houses, apartment units, and bare land.excellent way to find a bargain. Remember to do all
One recent example is a home in Boynton Beach,your research before you buy and you may be
Florida up for auction. It is a four bedroom house withrewarded with a property well below market value.
two bathrooms, a two-car garage, and an in-groundYou can either fix up the property and sell it, or fix it up
swimming pool. The starting bid for this auction wasand rent it out and receive a steady monthly income.
only $171,800! Comparable homes in the area sell for