Bandera County, Texas Tax Deed Auctions – What Investors Need To Know

If you’re thinking about buying tax-defaulted properties, Texas has a lot to offer. Bandera County stands out because it has a friendly small-town vibe and solid property values. This piece answers some common questions about tax sales in Bandera County. It also explains why many investors see this area as a great choice for buying tax deed properties. Each section provides clear answers and includes sources so you can verify the information yourself.

Quick Overview of Bandera County’s Tax Sale

Bandera County uses a tax deed system for property taxes. If someone doesn’t pay, the county can take their property and sell it at an auction. If you win, you get a sheriff’s deed. This means you can own the property later, but the original owner can buy it back for a while.

In Texas, these auctions happen on the first Tuesday of each month. Bandera County usually holds the tax sale at 2:00 p.m. at the Bandera County Justice Center on Highway 173 North. You can check the county’s website or the tax office for the latest dates. 

Summarized Details (Bandera County Tax Deed Auction)

What Makes Bandera County Attractive to Tax‑Sale Investors?

Unique Features of Bandera County

Bandera County sits on the rugged Edwards Plateau about 25 miles northwest of San Antonio. Known as the “Cowboy Capital of the World,” the area hosts rodeos, dude ranches and cowboy festivals that draw visitors year‑round. The county covers roughly 793 square miles of rolling hills and cedar‑lined valleys. Rivers such as the Sabinal and Medina cross the county, providing water for agriculture and recreation.

Though small, Bandera County’s population has been growing. According to Data USA, the county had about 21,600 people in 2023 with a median age of 53.4. The population grew by 1.92% from 2022 to 2023, and the median household income was approximately $69,703. Median property values were roughly $249,800, reflecting relatively strong real‑estate demand despite the rural setting.

Economically, ranching and agriculture remain important: in 2002 the county had 780 farms and ranches covering over 366,000 acres, and livestock sales accounted for most agricultural revenues. Popular crops include beef cattle, sheep, goats and apples. Tourism is another major driver. Attractions such as the Frontier Times Museum, Lost Maples State Natural Area and the Hill Country State Natural Area bring thousands of visitors for hiking, horseback riding and wildlife watching. These visitors support restaurants, lodges and retailers in the small towns of Bandera, Lakehills and Medina.

Why Tax Deed Investors Like Bandera County

1. High potential returns with low holding costs. Buy property and earn money while you wait. Get 25 percent extra if the old owner doesn’t pay. You could earn up to 50 percent if they wait a year.
   
2. Manageable risk. If someone doesn’t pay in six months, you can sell or develop the property. Even if it’s a home, you have two years to decide. Once the waiting time is up, the property is yours.
   
3. Moderate entry cost. Bids start at the owed taxes, often much less than the property value. Many lots near Medina Lake cost less than city homes. No sign-up fees are usually required.
   
4. Stable real‑estate market. With median property values around $249,800 and a growing retiree population, Bandera County’s real‑estate values tend to hold up well. Housing demand remains strong because many people seek second homes or rural retreats within commuting distance of San Antonio.
   
5. Accessible auction process. Bandera County holds its sales in person at the justice center, making it easy for investors to attend. Texas law also allows counties to adopt online auctions, though Bandera County currently uses live auctions. Out‑of‑state investors may hire a representative to bid on their behalf.
   

Understanding the Auction Process

How the Bandera County Tax Deed Auction Works

1. Public notice. The county or its law firm (often McCreary Veselka Bragg & Allen) publishes a notice of tax foreclosure in a local newspaper and on the county website. The notice lists the date, time and location of the sale and provides legal descriptions of the properties.
   
2. Sign‑in. On sale day (the first Tuesday of the month), bidders arrive at the Bandera County Justice Center. They sign an attendance sheet, show identification and receive a bidder card. There is no pre‑registration for most Bandera County sales; sign‑in opens before the 2 p.m. start time. Check with the tax office for any changes.
   
3. Opening bid. The sheriff or constable reads each property description and announces an opening bid equal to the taxes, penalties, interest and sale costs. No bid lower than this amount may be accepted. If no one bids, the taxing units may buy the property themselves for the opening amount.
   
4. Bidding. Bidders call out higher amounts. There is no bid down of the interest rate as in lien auctions; the premium is fixed by law. The highest bidder wins and must pay the full amount in cash or certified funds immediately after the sale.
   
5. Issuance of sheriff’s deed. The county issues a sheriff’s deed conveying the property subject to the former owner’s right of redemption. Title is without warranties; therefore buyers must perform due diligence.
   

Expected Returns and Redemption

In Texas, if someone wants their old property back, they need to pay the buyer. They have to give the buyer the winning bid amount plus any fees and taxes. If they try to get it back in the first year, they’ll pay a 25% extra fee. If they wait until the second year, it’s a 50% extra fee. For other properties, they have 180 days to take it back and the extra fee is only 25%. If they don’t get it back in time, the buyer owns it completely. While waiting, buyers can still sell their rights or collect rent, but they shouldn’t make big changes to the property until they can keep it.

Participation by Foreign Investors

Texas does not restrict non‑resident or foreign investors from buying tax deeds. However, non‑residents should consider hiring a local attorney or agent to bid at the auction, handle payment and complete recordings. They should also be aware of U.S. tax implications when realizing profits.

Importance of Due Diligence

Steps for Due Diligence

1. Property inspection. Check out the property or look at satellite maps to see if you can access it. Make sure it matches your investment plans. Some pieces of land might be hard to reach or might be underwater. Remember, you can’t go on the property without permission until after you buy it
   
2. Title research. Tax sales erase property tax debts. They don’t always wipe out federal tax debts, IRS debts, home loans, or HOA fees. It’s best to check the title at the county clerk’s office or hire a title company.
   
3. Evaluate zoning and land use. Check the county rules about building. In Bandera County, big plots are usually in the country and might not have water or electricity. Some neighborhoods close to Medina Lake have rules about what you can build there.
   
4. Check for bankruptcies or litigation. A bankruptcy filing can halt the sale. Review court records and consult legal counsel if needed.
   
5. Budget for holding costs. Investors must pay property taxes for subsequent years and may need to maintain insurance. Factor in redemption premiums and carrying costs when calculating potential returns.
   

Risks of Skipping Due Diligence

Failing to research properties can lead to purchasing landlocked parcels, lots in floodplains or homes with extensive repairs. Some properties might have environmental contamination or easements that reduce value. Because the sheriff’s deed carries no warranties, investors bear the risk of defects. Doing your homework protects your investment and allows you to bid confidently.

Buying Over‑the‑Counter Properties

If a property doesn’t sell at auction, it goes to the local tax units. Bandera County may later sell these properties to the public at fixed prices. Interested buyers can ask the tax office or the county’s law firm for a list. Buying this way can be a good deal because there’s no bidding competition, but it’s still important to do your research.

Pro Tips for Investing in Bandera County Tax Deeds

• Inspect before you bid. Drive by the property or use mapping tools to make sure it has road access and isn’t just a strip of land. Do not trespass.
  
• Estimate your exit strategy. Decide whether you will hold the deed during redemption to collect the premium, sell your redemption rights to another investor or keep the property long term.
  
• Bring proper funds. Only cash or certified funds are accepted; plan your bank withdrawal accordingly.
  
• Check for HOA dues and utility liens. Tax sales do not always eliminate homeowners’ association fees or municipal utility liens. Contact the relevant entities.
  
• Stay updated on state law. Texas periodically updates the property tax code; always verify redemption rules and sale procedures.
  

Conclusion – Smart Investing Requires Preparation

Bandera County, Texas offers a great chance for people who want to invest in tax deeds. Auctions happen every month. By state law, the rules for redeeming properties stay the same. The rural land can be a smart choice for buyers. You could earn 25% in just six months if the old owner pays to get their property back. If they don’t, you could buy a property for much less than what it’s worth. To succeed, you have to do your homework. This means knowing the redemption rules, checking out the properties, and making sure the title is clear. Use available tools to keep track of sales and changes in state laws. It can help to talk to local experts too. With careful research and the chance to get good returns, there are plenty of opportunities in Bandera County.

FAQs About Bandera County Tax Sales

Useful Links

• Auction Calendar
• How to Profit from Texas’s Redeemable Deeds
• Let’s talk about redeemable tax deeds and how you can profit from them!
• Discover Tax Deeds and how you can find property for as little as $50! 
• Learn How to maximize profits at the Texas Tax Sales

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About Dustin Hahn

Dustin Hahn is a Tax Lien & Deed investor with over 22 years of experience and hundreds of deals under his belt. He created Tax Lien School.com to help you buy Tax Deeds up to 90% off mortgage free and earn up to 36% ROI with Tax Liens. This site was voted the “Most Useful Resource” for new investors. Dustin’s YouTube Channel is the #1 Channel on Tax Liens & Deeds with over 98,000 Subscribers and 3600 videos to help you start. “The Best Time To Start Real Estate Investing Was 20 Years Ago, The Second Best Time Is TODAY!”

20+yrs

5–10deals/mo

2009TLS founded