Tax Deed Sale Price Run Up - The Joke Is On Them
I was at a tax deed sale that had some really grabby folks, bidding on everything and driving up the prices. Subdivisions with land valued at $1500 and selling for $1000-$5000 per lot (1.25 acres) in the real estate market went for $18000-$36000 per lot. I could not believe it.
The really strange part was that obviously they had not done thier research. Some of the land is classified as wetlands so that is $36000 down the drain as no way to get a permit in that county for wetlands use. Some of the parcels are really reserved for easements and light/power company use and some are the medians in the middle of the roads in some subdivisions.
I could not believe these folks. I wish I had that kind of money. [ Edited by linny on Date 05/11/2004 ]
Linny--(FL)--------------
Yes, this is happening a lot now. There are beginners going to the tax sales and overpaying for properties; paying market value or above. I suspect that they either will not show up at future tax sales or else they will moderate their bidding.
And as people report these over-payments at tax sales, it will discourage sensible people from going to tax sales. Perhaps in a couple of years the numbers of people a tax sales will decline and there will be bargains again.
You observed people for whom I coined the phrase: "Some people have more money than brains." Perhaps kinder would be be "Some people would rather spend their money than their time investigating.""
Good Investing********Ron Starr***********