How to Get Idaho Properties 40-90% Off at Tax Deed Sales

If you’re considering real estate investing through tax deed sales, Idaho offers unique opportunities. As a tax deed state, Idaho allows investors to purchase properties for a fraction of their market value, often 40–90% cheaper than retail. This article will guide you through the Idaho tax deed sales process, key strategies for success, and why Idaho is particularly appealing to investors.

Overview of Tax Deed Sales in Idaho

Type of Sale in Idaho:

Idaho operates as a tax deed state. This means that when you purchase a property at a tax sale in Idaho, you gain immediate ownership of that property. Unlike tax lien states, there is no redemption period during which the original owner can reclaim the property by paying off the debt. Once the deed is yours, so is the property.

Idaho Tax Deed Bidding Process:

The auction operates on a premium bidding system. Bidders compete by offering the highest price above the minimum bid, which generally covers the back taxes owed on the property.

Frequency:

Tax deed sales in Idaho typically occur annually in May. However, the exact timing can vary depending on the number of delinquent properties available for sale in each county.

Interest Rate/Penalty:

Since Idaho is a tax deed state, there is no interest rate or penalty involved post-purchase because the transaction results in outright ownership.

Redemption Period:

There is no redemption period in Idaho. Once you purchase a tax deed at auction, the property is immediately yours.

Online Auctions:

Currently, Idaho does not conduct online auctions, but some counties have their auction online. Interested investors need to attend the sales in person or make other arrangements.

Over-the-Counter Sales:

Some Idaho counties offer over-the-counter (OTC) sales, but these opportunities are limited. OTC sales allow investors to purchase tax deeds directly from the county after the auction if some properties remain unsold.

Legal Framework:

Tax deed sales in Idaho are governed by Idaho Code Sec 63-100 to 63-101.

How to Get Idaho Properties 40-90% Off at Tax Deed Sales

Purchasing properties at tax deed sales can yield significant savings, often 40-90% below market value. These savings come from buying properties directly from counties auctioning off real estate to recover delinquent taxes. If the property fails to sell at auction, it may still be available over the counter (OTC) in some counties at a discounted price.

Key Steps to Take:

• Research Properties:
  • Before attending an auction, it’s essential to research available properties. Each county provides a list of properties with delinquent taxes. Analyze property values and any potential issues like liens or structural problems.
• Attend Auctions:
  • Most Idaho counties require in-person attendance at their tax deed auctions. However, a few counties may offer limited online options.
• Make Strategic Bids:
  • While bidding, it’s crucial to stay within your budget and account for any additional costs like repairs or unpaid taxes.

How the Idaho Tax Deed Auction Process Works

Here’s A Step-by-Step Guide For Idaho Tax Deed Auction

1. Property Listings:
   • Idaho counties list properties eligible for tax deed sales. These properties have been delinquent on property taxes for at least four years.
2. Minimum Bid:
   • The minimum bid generally covers the back taxes and any associated fees. This figure can vary depending on the county and the property itself.
3. Bidding Process:
   • Once the auction begins, investors place bids above the minimum amount. The highest bidder wins the property.
4. Payment:
   • After the auction, payment is typically required in full. Some counties may offer a brief payment period, but confirming the details with the county beforehand is essential.
5. Ownership Transfer:
   • Once payment is complete, the property deed is transferred to the new owner, granting full ownership.

No Redemption Period: A Major Benefit for Investors

Unlike many states that allow property owners a redemption period after a tax sale, Idaho has no redemption period. This means once you purchase a property at a tax deed sale, it is yours without delay. You can immediately take possession, begin renovations, sell the property, or rent it out.

This immediate ownership significantly reduces the risks associated with tax deed investing since you won’t have to wait for the property owner to reclaim their property.

Over-the-Counter (OTC) Sales in Idaho

Idaho also offers opportunities through over-the-counter (OTC) sales, though they are limited to certain counties. OTC sales occur when properties fail to sell at auction. Investors can purchase these tax deeds directly from the county without bidding, often at a lower price than the auction’s starting bid.

Counties offering OTC sales include:

Ada County

Canyon County

Twin Falls County

However, it’s essential to act quickly as properties listed for OTC sales may attract attention from other investors.

Why Idaho is a Smart Investment for Tax Deeds

Idaho is an ideal location for tax deed investors, especially those interested in acquiring rental properties. The state is currently facing a significant housing shortage, with demand far outstripping supply. In some areas, the shortage is so severe that tent cities have become necessary to accommodate the working population. This situation creates a lucrative opportunity for investors who can step in to provide rental housing.

Key reasons to consider investing in Idaho Tax Deeds include:

Investing in Idaho tax deeds is a wise move for several reasons:

1. No Redemption Period:
   • Idaho’s immediate ownership structure is a significant advantage. You can gain control of a property quickly without waiting months or years for the former owner to redeem it.
2. Affordable Housing:
   • Idaho faces a housing shortage, making rental properties extremely valuable. Investors can offer affordable housing while benefiting from high rental demand by purchasing properties at 40–90% below market value.
3. Rising Property Values:
   • Idaho’s population is growing rapidly, which drives up demand for housing and, consequently, property values. This trend suggests that tax deed purchases will likely appreciate over time, adding long-term value to your investment.

Idaho Counties: Where to Find Tax Deed Sales

Here’s a quick look at some of the counties in Idaho where you can participate in tax deed sales. Each county has its own rules, schedules, and property listings, so it’s important to visit their websites or contact county officials directly for detailed information.

County	Official Website
Ada County	adacounty.id.gov
Adams County	co.adams.id.us
Bannock County	bannockcounty.us
Bear Lake County	bearlakecounty.info
Blaine County	blainecounty.org
Canyon County	canyonco.org
Twin Falls County	twinfallscounty.org

Tips for Successful Investing in Idaho Tax Deeds

1. Do Your Homework:
   • Before the auction, thoroughly research the properties you’re interested in. Understand the local market, inspect properties if possible, and consult with county officials.
2. Understand the Payment Process:
   • Each county may have different rules for how payments must be made. Some may require full payment on the auction day, while others may allow a brief payment period.
3. Build Relationships:
   • Establishing a good rapport with county officials can be incredibly beneficial. They can provide insights into the process and help you navigate any complexities.

Need a Hand?

If you want to dive deeper into Idaho tax deed investing, we’re here to help! Whether you need personalized advice, a detailed guide, or want to explore more opportunities, we’ve got you covered.

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