Potter County, Texas Redeemable Tax Deed: A Complete Guide to Tax Sales

Introduction

Potter County is a county in the Texas Panhandle with the city of Amarillo as its seat. The county is part of the Amarillo metropolitan area and spans more than 900 square miles. Local officials must collect property taxes to support schools, roads and public services, and when owners do not pay, the county conducts tax foreclosure sales. This article explains how Potter County runs these sales. You will learn when the auctions are held, how to register, where to find property lists, how bidding works, and what investors should know about redemption periods and expected returns. The goal is to help you decide if buying a tax deed in Potter County is right for you.

What Is Redeemable Tax Deed Investing in Potter County?

Texas is a redeemable tax deed state, which means investors purchase a deed to a property but the original owner still has time to buy back the property. The investor’s deed gives them temporary ownership while the owner has a right to “redeem” by paying the back taxes plus a penalty. In Potter County the deed gives investors a high return because the redemption premium is set by state law. If the original owner redeems within the first year, they must repay the purchase price plus 25 percent; if they redeem in the second year, the premium rises to 50 percent. If the owner does not redeem within the redemption period, the investor receives full ownership and can resell the property or keep it for rental income.

Important Details (Summary Table)

Fun Facts About Potter County

• County seat: Amarillo is both the county seat and trade center of the Texas Panhandle. The city straddles the line between Potter and Randall counties, with more than half of the population in Potter County.
  
• Population: The county had 118,525 residents at the 2020 census and an estimated 114,649 people in 2024.
  
• Climate: Amarillo enjoys an average temperature of 59 °F and more than 350 sunny days per year, making outdoor activities popular year‑round.
  
• Economy: Manufacturing, health care and construction are the county’s three largest industries. The region’s agricultural sector focuses on cattle, sorghum and wheat.
  

Attractions & Economic Highlights

• Attractions: Outdoor lovers visit Alibates Flint Quarries National Monument and Lake Meredith National Recreation Area, both partly located in Potter County. Historic sites include the LX Ranch buildings, reflecting the county’s early cattle‑ranching heritage.
  
• Transportation: Major highways such as Interstate 27, Interstate 40, US 60 and US 87 cross the county, connecting Amarillo to the rest of Texas and the Southwest. The city also benefits from the Rick Husband Amarillo International Airport.
  
• Economy: The county’s cost of living is relatively low; a two‑bedroom rental averages about $970 and food costs are below national averages. The unemployment rate is around 5.5 percent, and median household income is roughly $45,096. Major employers include supermarkets, manufacturing plants and health‑care providers.
  
• Community: Residents enjoy outdoor activities at nearby canyons and lakes, cultural events at the Amarillo Civic Center, and a strong local music and arts scene.
  

Why This County Is Ideal for Tax Deed Investors

Potter County offers a blend of affordable properties, steady population and strong economic growth. Housing values are modest – the median property value was about $134,900 in 2023 – and the area’s job market includes health care, manufacturing and education. These factors create demand for housing, giving tax deed investors an opportunity to acquire property at low prices and sell or rent for profit. The redeemable tax deed structure also provides high returns with low risk because the county’s redemption premium is set at 25 % to 50 %, often exceeding returns from savings accounts or bonds.

Auction Process for Tax Deed Sales

How the Auction Works

1. Notice and property list: Potter County publishes a list of properties headed for sale in the Monday edition of the Amarillo Globe newspaper. The list is also available on the Potter County Tax Office website () and at the Civil Division of the Sheriff’s Office. Prospective bidders should review the list carefully and conduct due diligence on each property.
   
2. Date and time: State law requires the auction to be held on the first Tuesday of each month between 10 a.m. and 4 p.m.. Potter County typically starts its sale at 10:00 a.m.; if the first Tuesday is January 1 or July 4, the auction moves to the first Wednesday.
   
3. Location: Recent sales have been held in the auditorium on the 11th floor of the Santa Fe Building at 900 S. Polk Street, Amarillo. Participants should arrive early to find seating and register.
   
4. Registration: Buyers must be at least 18 years old and may be required to sign an affidavit stating they are not related to the defendants in the tax lawsuit. Registration often begins shortly before the sale (usually around 9 a.m.) at the auction site and closes when bidding starts. Bring a valid photo ID and proof of funds.
   
5. Bidding: The auctioneer reads each cause number and legal description. Bids start at the amount of judgment (delinquent taxes, penalties and sale costs). Bidding is open outcry; the highest bid wins. If no outside bidder meets the minimum, the property is “struck off” to the county and may later be available through a private resale.
   
6. Payment: Potter County requires full payment in cash, cashier’s check or money order by 3 p.m. on the day of sale. There is no refund, and all sales are final. Some properties are subject to current‑year taxes, so investors may owe additional amounts after purchase.
   

Deed and redemption: Once payment is made, the sheriff issues a deed. The redemption period begins when the deed is recorded. During this period, the former owner can redeem the property by paying the purchase price plus penalties.

Maximum Potential Returns and Expected Returns

Investors in Potter County can earn high returns because Texas law mandates fixed redemption premiums. If a homestead or agricultural property is redeemed, the investor earns 25 % on their money during the first year and 50 % if redemption occurs in the second year. For non‑homestead properties, the redemption period is six months, but the premium is still 25 %. These returns are not prorated, meaning that even if the owner redeems after one month, the investor still receives the full 25 % premium. Such yields can far exceed those of bank CDs or bonds. If the property is not redeemed, the investor gains ownership and can sell or rent the property, potentially increasing the overall return.

Open to All Investors / Foreign Investor Participation

Texas law does not restrict non‑residents or foreign investors from buying tax deeds. Any person 18 years or older can bid at a Potter County auction. You do not have to be a Texas resident. International investors should be aware of exchange rates and U.S. tax reporting requirements. Because Texas deeds are redeemable, investors should plan for a waiting period before taking full ownership. Many foreign investors partner with local attorneys or brokers to handle paperwork and property management.

What Due Diligence Entails

Outline of Steps

• Research the property: Use the Potter‑Randall Appraisal District website to check lot size, property type, market value and zoning. Contact the appraisal district at (806) 358‑1601 for details.
  
• Inspect the property: Texas sales are buyer beware; investors are encouraged to physically inspect properties before the sale. Verify the condition, occupancy and access. You cannot enter the property without permission, but you can view it from the street.
  
• Check liens and taxes: Tax deeds do not wipe out all liens. Some liens (e.g., IRS, municipal utility liens) may survive the sale. Obtain a title search from a local title company to uncover any other encumbrances.
  
• Estimate costs: Determine how much you are willing to bid. Include unpaid taxes for the current year, deed recording fees and any repairs needed after you take possession.
  

Risks of Skipping Due Diligence

Skipping due diligence can lead to unpleasant surprises. You could end up with a property that has structural issues, environmental problems or occupied units that require eviction. You might also inherit hidden liens that exceed the property’s value. Because sales are final, you cannot get a refund if you later discover problems. Doing your homework helps you avoid overpaying and reduces the risk of legal disputes or unexpected costs.

Why Potter County Is a Top Choice for Tax Deed Investors

Economic and Tax Advantages

Potter County’s economy benefits from manufacturing, health care and construction. Amarillo is a regional hub for retail and logistics, offering steady job growth and rental demand. The county has no income tax and a sales tax rate around 7.8 percent. Low housing costs and a moderate cost of living make it easier to find undervalued properties.

Real Estate Market Overview

The median property value in the county was $134,900 in 2023, much lower than the national average. About 56.5 percent of residents own their homes, leaving a sizable rental market for investors. Amarillo’s growing population and role as a transportation hub help support property demand. Investors who acquire tax deeds at low prices can resell to owner‑occupants or hold them as rentals.

Pro Tips

• Arrive early: Seats fill quickly. Arrive by 9 a.m. to register and review any last‑minute property withdrawals.
  
• Bring multiple payment forms: Carry cashier’s checks in several denominations and cash; you must pay by 3 p.m. for each winning bid.
  
• Network with local experts: Build relationships with real estate agents, contractors and attorneys in Amarillo. They can help you estimate repairs, manage tenants and handle title work.
  
• Target non‑homestead properties: These have a shorter 6‑month redemption period, letting you gain full ownership sooner. Homestead properties have a 2‑year period but offer higher premiums if redeemed.
  
• Monitor the newspaper: The county advertises each sale in the Monday edition of the Amarillo Globe. Checking the notices weekly ensures you do not miss new opportunities.
  

Frequently Asked Questions (FAQs)

1. What happens after I buy a property at a Potter County tax sale? You receive a sheriff’s deed. If the former owner redeems within the allowed period, they must pay you the purchase price plus the statutory premium. If they do not redeem, you become the owner and can evict occupants, renovate or sell.
   
2. Do I need to file for a quiet title after the redemption period? Yes. Many title companies will not insure a tax deed until a quiet‑title action is completed. This court process confirms your ownership and removes clouds on the title. Work with a local attorney, as Texas law has specific requirements.
   
3. Can I take possession during the redemption period? You cannot occupy or improve the property until the redemption period expires, because the original owner still has the right to reclaim it. You may, however, secure the property to prevent vandalism and maintain insurance.
   
4. How do I finance a tax deed purchase? Most Texas counties, including Potter, require payment in full by 3 p.m. on sale day. Traditional mortgages do not close quickly enough, so investors usually use cash, private loans or lines of credit. After the redemption period, you may refinance or sell.
   

What should I do if the property has tenants? If the property is occupied, you must follow Texas landlord‑tenant law to remove tenants. Some occupants may be the former owner exercising their redemption rights. Consult an attorney before beginning eviction.

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?

Potter County properties are listed via our Auction Calendar. Make use of our free resources to guide your evaluation. And when you’d like expert insight into next steps or risk mitigation, go ahead and book a call.

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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