Parmer County, Texas Redeemable Tax Deed

Introduction to Parmer County and This Guide

Parmer County lies along the New Mexico border in the south‑central Texas Panhandle. It was carved from the XIT Ranch in the late 1870s and organized in 1907. Farwell is the county seat while other towns include Friona, Bovina and Lazbuddie. The county covers around 885 square miles, most of which is farmland. This article explains how tax deed sales work in Parmer County and what investors need to know before bidding. It covers the typical auction date and time, where the sale is held, registration requirements, bidding procedures and redemption periods. It also provides county insights, attractions, economic highlights and investor tips.

What Is a Redeemable Tax Deed in Parmer County?

Texas operates a redeemable tax deed system. When property taxes remain unpaid, the county sells a deed to the property at auction to collect the delinquent taxes and costs. The winning bidder receives a sheriff’s deed but does not get an immediate right of possession. The original owner can redeem the property by paying the bid amount plus a penalty (25 % during the first year and 50 % during the second year for homestead or agricultural land). Non‑homestead properties have a six‑month redemption period. During the redemption period the investor receives no rent but will be refunded the principal plus the statutory penalty if the owner redeems.

Important Details

Item	Information
Tax Sale Type	Redeemable tax deed (property sold with redemption period)
Typical Sale Date	First Tuesday of each month (postponed to Wednesday if the first Tuesday falls on Jan 1 or July 4)
Redemption Period	180 days for most properties; two years for homestead or agricultural land
Interest/Penalty	25 % penalty if redeemed within the first year; 50 % penalty if redeemed during the second year
Bid Procedure	Public auction to highest bidder; opening bid usually equals delinquent taxes, penalties, interest and sale costs
Deposit	No pre‑bid deposit for in‑person sales, but winning bidder must pay the full amount with certified funds immediately after the auction; bidders may need a certificate showing they owe no county taxes

Fun Facts About Parmer County

• History and settlement: Parmer County is named after Martin Parmer, a signer of the Texas Declaration of Independence. The area was part of the huge XIT Ranch in the late 1800s. Towns such as Friona (originally “Frio”) and Bovina began as railroad stops. Farwell, the county seat, was established around 1905.
  
• Population: The county’s population is small—under 10,000 residents according to recent estimates. About two‑thirds of the people are Hispanic or Latino.
  
• Agriculture: The county economy revolves around agriculture, especially cattle feedlots, dairy farms and irrigated crops. The High Plains climate and irrigation from the Ogallala Aquifer support production of corn, cotton and sorghum.
  
• Museums and heritage: The Parmer County Museum in Farwell preserves local history and offers archives on early settlers, ranches and towns.
  

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Attractions & Economic Highlights

Attractions: Visitors can explore the Parmer County Museum in Farwell. The museum displays artifacts from early ranching days and offers genealogical resources. Outdoor enthusiasts enjoy birding and hunting on the High Plains.

Transportation: Major highways crossing Parmer County include U.S. Highways 60, 70 and 84, and State Highways 86 and 214. The county has general aviation facilities, and Amarillo International Airport is about an hour and a half away.

Economy: Agriculture dominates, with dairy, feedlots and crop farming. The county also has small manufacturing and service businesses. Economic activity benefits from proximity to the city of Clovis, New Mexico.

Community: Residents enjoy community events such as the annual Friona Cheeseburger Festival, local rodeos and 4‑H programs. The county offers a rural lifestyle with affordable housing and small‑town schools.

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Why Parmer County Is Ideal for Tax Deed Investors

Parmer County offers a redeemable tax deed system that provides a strong return on investment with capped risk. Properties often sell at opening bids close to the amount of delinquent taxes, so the purchase price can be lower than market value. Because Texas law requires a minimum 25 % penalty when owners redeem within the first year, investors earn an attractive return if the property is redeemed. If the property is not redeemed, the investor can secure ownership of land in a stable agricultural market. With a small population and limited competition, auctions often have fewer bidders, improving your chances of winning at a reasonable price.

Auction Process for Tax Lien/Deed Sales

Parmer County follows state law for foreclosure of tax liens. Auctions are held on the first Tuesday of each month between 10 a.m. and 4 p.m. (local time, Central Time Zone). If the first Tuesday falls on New Year’s Day or Independence Day, the sale occurs on Wednesday. Sales take place at the Parmer County Courthouse in Farwell; notices specify the exact location in or near the courthouse.

Before the sale, the county publishes a Notice of Sale and list of properties at least 21 days in advance. The notice includes each property’s legal description, the minimum bid and the time the sale will begin.

How the Auction Works

1. Registration: Parmer County does not require advance registration for in‑person sales; bidders register on‑site on the day of the auction. However, Texas law allows the sale officer to require each bidder to provide a written statement from the county tax assessor‑collector certifying that the bidder owes no delinquent taxes. You can request this statement from the Parmer County Tax Office (see contacts below).
   
2. Opening bid: The auctioneer announces each property and the opening bid. The opening bid usually equals the amount of delinquent taxes, penalties, interest and the costs of sale. Properties may be withdrawn if the owner pays the taxes before the sale.
   
3. Bidding: Bidding proceeds in increments announced by the auctioneer. The highest bidder wins. Texas statutes allow bidders to bid down the interest penalty, but Parmer County sells redeemable deeds; therefore, the penalty is fixed by law (25 % or 50 %) rather than bid down as in lien states.
   
4. Payment: The winning bidder must pay the full amount of the bid immediately after the sale. Payments must be made with cash, cashier’s check or money order.
   
5. Sheriff’s deed: After payment, the sheriff prepares a deed conveying the county’s interest in the property to the purchaser. The deed is subject to redemption rights. The investor cannot take possession or make improvements until the redemption period expires.
   

Terms of the Sale

• Tax Clearance Certificate: The county may require a bidder to present a certificate from the tax assessor‑collector stating that the bidder owes no delinquent taxes. This requirement ensures that delinquent taxpayers do not buy more property.
  
• Full Payment: No financing is offered at the sale. The full amount is due immediately. Failure to pay can result in forfeiture and legal penalties.
  
• Subject to Redemption: The winning bidder receives a deed but must respect the redemption period. During this period, the original owner may redeem by paying the bid amount plus the statutory penalty and additional costs.
  

No Warranties: Properties are sold “as is.” There are no guarantees about the physical condition or title status. Due diligence is essential.

Maximum Potential Returns and Expected Returns

Returns depend on whether the property is redeemed. If the owner redeems, the investor receives the purchase price plus a 25 % penalty if redemption occurs within the first year and 50 % if redemption occurs in the second year for homestead or agricultural property. Non‑homestead properties redeem within six months at a 25 % penalty. For example, a $10,000 purchase would yield a $2,500 return if redeemed within six months. If the owner does not redeem, the investor gains ownership of the property. With agricultural land valued below market, investors can realize significant appreciation or rental income after clearing title. Overall, expected returns exceed typical bank rates and can be comparable to high‑yield corporate bonds, but they require patience and due diligence.

Open to All Investors / Foreign Investor Participation

Texas law allows both U.S. and foreign investors to participate in tax deed auctions. Bidders must be over 18 years old, mentally competent and not owe delinquent property taxes in Texas. Foreign investors may need an Individual Taxpayer Identification Number (ITIN) to register with the county tax office. Because the auctions are public, there is no restriction on residency; investors from other states or countries are welcome. Online auctions, if adopted, require bidders to register on the county’s approved platform and deposit funds electronically. All investors should consult legal and tax advisors about federal and state obligations. Parmer County rarely holds online auctions, so most investors attend the sale in person on the courthouse steps.

Importance of Due Diligence in Parmer County Tax Deed Investing

What Due Diligence Entails

Due diligence means thoroughly investigating each property before bidding.

• Property inspection: Visit the property to assess its condition, neighborhood and access. Check for structural damage, vandalism or occupancy.
  
• Title search: Review county records to identify liens, mortgages, easements or legal issues. Tax deeds convey only the interest of the taxing entities; other liens may survive the sale.
  
• Market analysis: Compare the property’s assessed value and market value. Research comparable sales and demand in the area. Evaluate the potential resale or rental value after the redemption period.
  
• Budgeting: Determine your maximum bid based on expected returns and cost of repairs. Factor in the redemption premium, taxes and legal fees.
  

Risks of Skipping Due Diligence

Failing to research can lead to costly surprises. Investors may buy properties with environmental issues, demolished structures or disputes over access. Outstanding liens from the IRS or property owner associations may still encumber the property after the tax sale. If the property is occupied, eviction costs and delays can reduce profits. Spending time on due diligence helps avoid these pitfalls and ensures a more informed investment.

Why Parmer County is a Top Choice for Tax Deed Investors

Economic and Tax Advantages

The county’s agricultural base provides stable property values and low volatility. With a small population and minimal urban growth, there is less competition at auctions. The local tax rates are lower than those of metropolitan counties, and Texas has no state income tax. Investors also benefit from the statutory penalty rate of 25 % or 50 % on redeemed properties, which is generous compared to interest rates in other states.

Real Estate Market Overview

Parmer County’s real estate market is dominated by farmland and ranches. Residential properties are affordable; median home values are significantly lower than the national average. Demand for agricultural land remains strong due to dairy and feedlot operations. Investors purchasing tax deeds may acquire small farm tracts, vacant lots or rural homes at a fraction of market value. After clearing title, these properties can be resold, leased or held for long‑term appreciation.

Conclusion

Parmer County’s redeemable tax deed sales offer investors a chance to earn high returns while helping the county recover delinquent taxes. Auctions are held on the first Tuesday of each month at the county courthouse between 10 a.m. and 4 p.m. Registration occurs on the day of the sale, and bidders should bring a tax clearance certificate showing they owe no county taxes. The winning bidder pays the full amount immediately and receives a sheriff’s deed subject to redemption. Redemption periods range from six months for non‑homestead properties to two years for homestead and agricultural land. Because the minimum penalty is 25 % of the bid amount, investors either earn a substantial return or gain ownership of real estate in a stable agricultural region.

Thorough due diligence is vital. Investigate the property, conduct a title search, and understand the local market before bidding. Contact the Parmer County Tax Office (see Useful Links) for current sale lists and registration requirements. With preparation and patience, tax deed investing in Parmer County can be a rewarding strategy.

Pro Tips

• Check notices early: The county posts foreclosure notices at least 21 days before the sale. Review them early to research each property.
  
• Obtain a tax clearance certificate: Request a certificate from the tax assessor‑collector confirming you owe no delinquent taxes. This avoids delays during registration.
  
• Bring certified funds: Bring cash, cashier’s checks or money orders to pay the full bid amount immediately. Personal checks and credit cards are not accepted.
  
• Inspect properties: Drive by the properties before the sale. Look for occupancy, condition and access issues. Avoid bidding on unknown lots or landlocked parcels.
  
• Consider redemption returns: Factor in the statutory 25 % or 50 % redemption premium when calculating returns. A redeemed deed provides a quick return, while a non‑redeemed deed may require additional costs to clear title and make the property marketable.
  

Frequently Asked Questions

1. Do I need to renovate the property after purchase?
You cannot enter or improve the property during the redemption period. After redemption expires, you may renovate, but always check local building codes and permits.

2. How do I clear title after the redemption period?
Tax deeds do not guarantee clear title. After redemption, investors often file a suit to quiet title to remove outstanding claims and obtain insurable title. Consult a real‑estate attorney.

3. Are there other liens on the property?
Some liens, such as IRS liens or homeowners association liens, may survive the tax sale. Conduct a thorough title search before bidding to identify potential liabilities.

4. Can I finance the purchase?
No. Parmer County requires payment in full immediately after the auction. Arrange financing in advance, such as using a line of credit or private funds.5. Can I buy tax deeds over the counter (OTC)?
Parmer County does not currently offer over‑the‑counter tax deeds. Unsold properties are typically struck off to the taxing units and may be reoffered at future auctions. Contact the tax office to inquire about any OTC opportunities.

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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Parmer County properties are listed via our Auction Calendar. Consult them and supplement your knowledge with our free resources. If you’re ready to translate opportunity into action, book a call and we’ll work alongside you.

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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