Investing in Blanco County, Texas Tax Deed Sales

Blanco County is in the Texas Hill Country, between Austin and San Antonio. It has about 14,322 people and is growing by around 4.65% each year. This mix of small-town living and city access attracts investors. In this article, we’ll explain how tax deed auctions work in Blanco County. We’ll also answer common questions and highlight what makes the area special

How Texas Handles Tax Deed Investing

Texas doesn’t sell tax lien certificates. If someone doesn’t pay their property taxes, the local government can take them to court. The court can order the property to be sold at a tax deed sale. The person who buys it gets a sheriff’s deed, which proves they own the property. 

However, the old owner can still get the property back. They need to pay the amount it was sold for plus a big extra fee, but only for a certain time. Once that time is up, the new owner has full ownership. There’s no interest to collect like with tax liens.

Important Details at a Glance

Blanco County and Its Unique Appeal

Blanco County, founded in 1858, is in Texas and has beautiful hills and rivers. The town of Blanco grew quickly and has a historic courthouse that’s now a visitor center. Most of the county is rural, filled with farms and ranches. The population has grown a lot, increasing by 36 percent since 2010.

For investors, Blanco County is attractive because auctions are less crowded compared to big cities. Tax deeds give real ownership after a certain time, which can lead to good profits.

In June, the Blanco Lavender Festival brings people together for music and shopping. Johnson City, the county seat, was the boyhood home of President Lyndon B. Johnson.

People enjoy outdoor activities at Blanco State Park and visiting local wineries. The economy is mainly ranching and tourism, with an average household income of $87,564. The nice weather makes it a great spot for hiking and relaxing. Many like the small-town feel and easy access to bigger cities.

Why Blanco County Tax Deeds Offer High Returns With Manageable Risk

High Returns with Relatively Low Risk

Texas tax deed investors benefit from statutory redemption premiums rather than variable bid‑down interest rates. If a former owner redeems a homestead or agricultural property, they must reimburse the purchase price and pay a 25 % premium during the first year or 50 % during the second year. For other property types, the premium is 25 % and redemption must occur within 180 days. These premiums represent an effective return on investment; few legal investments pay 25 % in six months. Should redemption not occur, the investor acquires the property—often at a fraction of market value.

Auction Process for Tax Deed Sales

1. Notice and list of properties: At least 21 days before the sale, the county clerk posts notices on the courthouse door and publishes them in a local newspaper. Notices list each property’s legal description, judgment amount and the date and time of sale.
   
2. Registration and deposit: Bidders must register with the county clerk (or online vendor if the county uses an internet platform) and provide a statement from the tax assessor‑collector showing they owe no delinquent property taxes. Many counties require a deposit of 5 % of the total bids they intend to place.
   
3. Arrive at the auction: Auctions in Texas must start between 10 a.m. and 4 p.m. on the first Tuesday of the month. Blanco County typically begins at 10 a.m. Central Time on the courthouse steps or designated area. Bidders must sign in before the sale begins.
   
4. Bidding: The constable or sheriff reads each property’s legal description and opening bid. Bidders call out progressively higher amounts. The minimum bid equals the total judgment; offers below that amount are not accepted. Bidding continues until no higher offers are made, and the highest bid wins.
   
5. Payment: Winning bidders must pay the full purchase price by 4 p.m. on the day of the sale or by the next business day. Payment is typically made by cashier’s check or money order. Failure to pay forfeits the deposit and the property may be re‑auctioned.
   
6. Deed and redemption: After payment, the sheriff issues a deed. The winning bidder holds legal title but cannot take possession until the redemption period expires. The former owner retains the right to redeem the property by paying the purchase price plus the statutory premium. Once the redemption period passes, the investor owns the property free and clear.
   

Maximum Potential Returns

Investors often ask, “How much can I earn?” If the previous owner redeems a non‑homestead property within 180 days, the investor receives 25 % of their investment plus reimbursement of taxes and fees. If the property is a homestead and redemption occurs during the first year, the investor earns 25 %; if redeemed during the second year, the premium jumps to 50 %. Should the owner not redeem, the investor acquires the property outright. Because auctions sometimes yield properties for less than market value, post‑redemption sale profits can far exceed the 25 % or 50 % premium.

Open to All Investors

Texas law does not restrict participation by out‑of‑state or foreign investors. As long as bidders register, provide valid identification and prove they have no delinquent property taxes, they may participate. Online platforms used by some counties make remote bidding possible, but Blanco County currently conducts live sales at the courthouse. International investors should work with a local representative to handle registration and payment.

Understanding the Blanco County Tax Deed Sale Process

Performing Due Diligence

Wise investors study properties before bidding. Due diligence includes:

• Title search: Check public records for liens, easements or other encumbrances. Tax deeds do not wipe out all liens; IRS liens, municipal utility liens and some mortgages may survive.
  
• Property inspection: Whenever possible, drive by the property to assess its condition. Tax sales are “as‑is,” and buyers have no access to the interior.
  
• Research zoning and restrictions: Blanco County has development rules and environmental regulations posted on its website. Confirm land use restrictions and whether the property lies within a floodplain or has septic issues.
  
• Check redemption status: Determine whether the property is a homestead or agricultural parcel; this affects the redemption period and potential premium.
  

Skipping due diligence can lead to unpleasant surprises, such as properties with no road access, environmental contamination or outstanding liens. Professional assistance from title companies or attorneys can be worthwhile.

Over‑the‑Counter (OTC) Purchases

Texas counties sometimes auction unsold tax properties at later “resales.” After the redemption period expires and the property is struck off to the county, the commissioners court may authorize a resale at a reduced price. Investors can negotiate directly with the county or participate in scheduled resale auctions. These opportunities resemble OTC purchases because there is little competition and the price can be below the original judgment. Check Blanco County’s public notices for any resale listings.

Pro Tips for Success

• Register early: Obtain your statement of no delinquent taxes from the tax assessor‑collector well before the sale and call the clerk’s office to confirm registration deadlines.
  
• Bring certified funds: Arrive at the sale with cashier’s checks made payable to yourself. Once you know your winning bid, endorse the check over to the sheriff or as directed.
  
• Understand the premium structure: Remember that the premium accrues only if the owner redeems. If not redeemed, your profit depends on the property’s resale value.
  
• Budget for taxes and maintenance: You must pay subsequent taxes during the redemption period. Failure to do so could result in foreclosure by another taxing unit.
  
• Network with locals: Attend local real‑estate investors’ meetings or work with a real‑estate agent familiar with Hill Country properties. Local knowledge helps in identifying high‑potential parcels.
  

Frequently Asked Questions

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

Need a Hand

Blanco County has tax-sale properties listed that could fit your goals. Head over to our Auction Calendar and explore what’s available. Our free resources offer step-by-step help, and if you need someone to talk through your ideas with, just Book a call—we’re happy to help.

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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