Nacogdoches County, Texas Redeemable Tax Deed Guide

Introduction of the county and about the article

Nacogdoches County sits in the Piney Woods region of East Texas. It is the oldest town in Texas and still carries pieces of Spanish, Mexican, Texan and American history. The county hosts major roads, a university campus and fertile farmland. This article explains how the county conducts redeemable tax deed sales. It answers questions about sale dates, bidding procedures, redemption rights, registration and other essential details. It also explores the county’s economic strengths, attractions and reasons investors are drawn to its tax deeds.

What is/Brief Overview of County’s Tax Lien/Deed Investing

Texas uses a redeemable tax deed system rather than tax lien certificates. When a property owner fails to pay property taxes, the county obtains a court order and sells the property at a sheriff’s auction. The winning bidder receives a deed to the property. Owners who redeem must reimburse the bidder’s purchase price plus a penalty — 25 percent if redemption occurs within the first year and 50 percent in the second year for homestead or agricultural property. For other property, the redemption period is 180 days and the premium is capped at 25 percent.

Important Details

Detail	Description
Tax Sale Type	Redeemable tax deed – the high bidder receives a deed subject to the owner’s right of redemption.
Typical Sale Date	Auctions are usually held on the first Tuesday of each month (or the first Wednesday when a holiday falls on that Tuesday) between 10 AM and 4 PM Central Time.
Redemption Period	Two years for homesteads and agricultural land; 180 days for other property.
Interest/Penalty Rate	Owners who redeem pay 25 % premium in the first year; 50 % in the second year on homestead/agricultural property. Other properties carry a 25 % premium.
Bid Procedure	Premium bid: bidding starts at taxes, fees and costs. The highest cash bid wins.
Deposit/Payment	Successful bidders must pay by cash or cashier’s check by 4 PM on the sale day; counties often require a Statement of No Delinquent Taxes Owed before bidding.

Fun Facts About the County

• Oldest town in Texas: Nacogdoches traces its roots to a Caddo Indian settlement. Spain established a mission here in 1716, and the town became an important trading post at the crossing of El Camino Real and El Calle del Norte
  
• Nine flags instead of six: Because of multiple rebellions and governments, nine different flags have flown over Nacogdoches rather than the six typically associated with Texas
  
• Blueberry capital: In the late 1980s the county was the largest blueberry producer in Texas and one of the largest in the country. The annual Texas Blueberry Festival draws tens of thousands of visitors and pumps money into the local economy.
  
• University town: Stephen F. Austin State University (SFA) is located in Nacogdoches and contributes over $348 million annually to the local economy. In 2023 SFA supported 4,819 jobs, accounting for more than 18 percent of county employment. The county’s population was around 65,375 with a median household income of about $51,200.
  
• Historic landmarks: The Old Stone Fort, a replica of an 18th‑century trading post, stands on the SFA campus
  

Attractions & Economic Highlights

Attractions: The county boasts the Old Stone Fort museum, an 18th‑century trading post now serving as a museum on the university campus Annual events such as the Texas Blueberry Festival celebrate the area’s agricultural heritage and draw thousands. Lake Naconiche offers boating, fishing and camping. Trails like the Lanana Creek Trail and the Ruby M. Mize Azalea Garden (the largest azalea garden in Texas) make the area a haven for outdoor enthusiasts.

Transportation: Nacogdoches is served by U.S. Highway 59, U.S. Highway 259 and several Texas state highways. Greyhound buses operate from the local station, and the developing Interstate 69 corridor will further improve access.

Economy: Education, retail trade, health care and manufacturing are the county’s primary employers. SFA and the Nacogdoches Independent School District provide significant employment. The area’s gross regional product (GRP) was around $3.3 billion in 2023. Poultry farming and blueberry production underpin the agricultural sector.

Community: Residents enjoy a mix of small‑town charm and university energy. Outdoor activities include hiking, fishing and camping at national forests and county parks. Community events, farmers markets and university sports foster a strong sense of place.

Why This County is Ideal for Tax Lien/Deed Investors

Nacogdoches County combines a stable economy with affordable real estate. A major university, steady employment in education and health care, and growing manufacturing provide a strong tax base. Property values remain moderate relative to urban centers, so the cost of entry for investors is reasonable. High return potential comes from Texas’s generous redemption penalties — investors may earn 25 % to 50 % if owners redeem. The county’s location on major highways and the future Interstate 69 corridor promises ongoing development, making redeemed properties attractive for resale or rental.

Auction Process for Tax Lien/Deed Sales

Texas law requires counties to hold tax foreclosure sales on the first Tuesday of each month between 10 AM and 4 PM. Sales may be moved to Wednesday if Tuesday falls on January 1 or July 4. Nacogdoches County typically holds auctions at the county courthouse (101 W Main St, Nacogdoches, TX 75961) or online, depending on the sheriff’s notice. Notices of sale list the properties, minimum bids and any special conditions.

How the Auction Works

1. Notice and Listing: Properties subject to foreclosure are published in local newspapers and posted on the county or law firm website at least three weeks before the sale.
   
2. Registration: Texas law allows counties to require bidders to register. Many counties, such as Jefferson County, require a Statement of No Delinquent Taxes Owed and government‑issued ID before bidding. Registration usually opens a few weeks before the sale and closes shortly before the auction begins.
   
3. Bidding: Auctions use a premium bid system. Bidding begins at the sum of delinquent taxes, interest, penalties, court costs and sale expenses. Bidders offer higher amounts until the auctioneer declares the highest bid. The winning bidder must sign the purchase agreement immediately.
   
4. Payment: Successful bidders must pay the full purchase price by 4 PM on the sale day using cash or cashier’s check. Failure to pay may result in a penalty of up to 20 % of the property’s value and forfeiture of bidding privileges.
   
5. Deed Issuance: After payment, the sheriff delivers a Sheriff’s Deed without warranty. The deed transfers ownership but may be subject to liens. The county records the deed, which starts the redemption period.
   

Redemption: During the redemption period, the former owner may reclaim the property by paying the purchase price plus the statutory premium — 25 % to 50 %. If the owner redeems, the investor receives the redemption premium as profit. If the owner does not redeem within the statutory period, the investor holds full title.

Maximum Potential Returns and Expected Returns on Nacogdoches Tax Deed Certificates

Texas’s redeemable deed system offers attractive fixed returns. For homestead or agricultural property, the redemption premium is 25 % of the purchase price if the owner redeems in the first year and 50 % if redemption occurs in the second year. Other properties have a 180‑day redemption period with a 25 % premium. Because the premium is calculated on the entire purchase price, investors can earn double‑digit returns that exceed typical bond or certificate‑of‑deposit yields. Returns are maximized when owners redeem early. However, if owners do not redeem, investors acquire the property outright at a price that often represents a fraction of market value. Investors should factor in repair costs, title issues and resale timelines when estimating overall yield.

Open to All Investors / Foreign Investor Participation

Texas law does not restrict participation to residents. Both domestic and international investors may bid at county tax sales. Non‑resident bidders must comply with registration requirements, including submitting a Statement of No Delinquent Taxes Owed and valid identification. Out‑of‑state bidders should retain local counsel to review titles and handle post‑auction filings. Because many bidders travel to auctions, early registration and proof of funds are essential. The combination of predictable returns and low barriers to entry makes Nacogdoches County a compelling choice for global investors seeking exposure to U.S. real estate. Due diligence is still paramount; foreign investors should understand local redemption laws and property conditions before bidding.

What Due Diligence Entails

Outline the steps investors should take

1. Title Search: Verify that there are no federal tax liens, IRS liens, or other encumbrances. Tax deeds do not automatically clear all liens.
   
2. Property Inspection: Visit the property (or view satellite images) to assess its condition, occupancy and neighborhood. Properties are sold “as is” without warranties.
   
3. Estimate Market Value: Compare recent sales, appraised values and potential repair costs to determine a maximum bid.
   
4. Understand Redemption Status: Determine whether the property is a homestead or agricultural parcel (two‑year redemption) or other type (180‑day redemption).
   
5. Budget for Holding Costs: Factor in property insurance, maintenance and taxes during the redemption period.
   

Risks of Skipping Due Diligence

Failing to research a property may result in unexpected costs, such as extensive repairs, hidden liens or demolition orders. Investors who overbid might recover only the statutory premium if the owner redeems, leaving little margin to cover expenses. Without a title search, buyers could inherit IRS or municipal liens that survive the tax sale. Uninspected properties might be occupied, requiring eviction proceedings. Conducting thorough due diligence protects investors from legal headaches and financial losses.

Buying Over‑the‑Counter (OTC) Deeds in Nacogdoches County

When properties do not sell at the initial auction, they may be struck off and conveyed to the taxing unit. Counties often allow buyers to purchase these deeds directly, known as over‑the‑counter purchases. Interested buyers can review struck‑off lists maintained by the delinquent tax law firm (Perdue Brandon Fielder Collins & Mott) or the county. Buyers submit an offer equal to at least the opening bid and must obtain approval from the taxing authorities. OTC deeds still carry the same redemption periods and premium rates. The benefit is the absence of bidding competition and a fixed purchase price.

Benefits of OTC Purchases

• No bidding competition: Buyers negotiate directly with the county or law firm.
  
• Fixed premium: The redemption premium remains 25 % or 50 %, ensuring predictable returns.
  
• Opportunity to target specific properties: Investors can choose properties that meet their investment criteria rather than bidding blindly at auction.
  

Why Nacogdoches County is a Top Choice for Tax Deed Investors

Economic and Tax Advantages

Nacogdoches County offers investors a combination of affordable property prices, steady economic growth and high statutory returns. The local economy is anchored by education, health care and manufacturing. The presence of SFA ensures a constant demand for housing, while retail and health care provide employment stability. Agricultural production, including poultry and blueberries, diversifies the tax base. Investors benefit from Texas’s high redemption premiums and the absence of ongoing property taxes during the redemption period (the buyer pays only after receiving the deed).

Real Estate Market Overview

The county’s real estate market is characterized by modest home prices and steady demand. University students, faculty and hospital staff create a constant rental market. Rural parcels with timber or agricultural potential attract buyers seeking recreation or investment land. With new infrastructure like Interstate 69 on the horizon, property values are poised to increase. Investors who acquire tax deeds now may benefit from appreciation once the redemption period expires.

Conclusion

Nacogdoches County presents a unique opportunity for tax deed investors. The county holds redeemable tax deed sales on the first Tuesday of each month between 10 AM and 4 PM. Bidders must register in advance and may need to provide a Statement of No Delinquent Taxes Owed. Successful bidders pay the purchase price on the day of sale and receive a deed without warranty. The redemption period ranges from 180 days to two years, and investors earn a 25 % to 50 % premium if the owner redeems.

The county’s strong university‑driven economy, cultural events like the Texas Blueberry Festival, and improving transportation corridors make it attractive for investors. However, due diligence is essential: research titles, inspect properties and budget for holding costs. With careful planning, Nacogdoches County tax deeds can produce high returns while offering investors a chance to own property in a historic and growing area.

Pro Tips

• Register early: Obtain a Statement of No Delinquent Taxes Owed and complete registration at least a week before the sale. Counties may not accept registration on sale day.
  
• Bring verified funds: Be prepared to pay with cash or cashier’s check by 4 PM on auction day. Bring a little extra to cover unexpected price increases.
  
• Start small: New investors might begin with lower‑priced properties to learn the process and build confidence.
  
• Network locally: Attend sales in person (or online) to meet seasoned investors and local attorneys. Their insights can help with due diligence and resale strategies.
  
• Monitor struck‑off lists: Unsold properties may be purchased over the counter, often without bidding competition. Contact the delinquent tax law firm or county for current inventories.
  

Frequently Asked Questions

What happens after I win a tax deed auction in Nacogdoches County?
After paying the full purchase price, the sheriff issues a deed without warranty. The former owner then has a redemption period (180 days to two years) to repay the amount plus a premium. If the owner redeems, you receive your purchase price plus the premium. If not, you own the property outright.

Can I take possession or evict occupants immediately after the sale?
No. You hold a deed subject to redemption, so you generally cannot make major changes until the redemption period ends. Evicting occupants before redemption could violate their rights. Consult a real‑estate attorney before taking possession.

Are there financing options for tax deed purchases?
Texas counties require full payment by 4 PM on auction day. Traditional financing is rarely available because lenders dislike the redemption risk. Many investors use cash or lines of credit.

How do I quiet title after the redemption period?
Even after the redemption period expires, tax deeds often require a quiet‑title action to obtain insurable title. This legal process clears any remaining claims. Work with an attorney experienced in Texas tax deeds.What if the property has environmental or structural issues?
Properties are sold “as is,” so any environmental hazards, structural damage or code violations become your responsibility. Inspect properties before bidding and factor potential remediation costs into your bid.

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