Investing in Searcy County, Arkansas Tax Deeds – A Friendly Guide

Every year, Arkansas’ Commissioner of State Lands sells properties that haven’t paid taxes. This is a chance for buyers to get land for less than its usual price. This article will explain how the process works, what to expect on auction day, and why Searcy County could be a good place for tax-deed investors.

A quick overview of Arkansas tax‑deed investing

In Arkansas, if you don’t pay your property taxes for two years, the county sends the property to the state. The state then sells it at a public auction. The winning bidder gets ownership immediately, with no chance for the previous owner to get it back after the sale.

Since July 1, 2023, the old owner must pay all back taxes before the auction to keep their property. After buying, the new owner has a 90-day window where others can contest the sale. Once that period is over, they can claim clear ownership and get title insurance.

Important details at a glance

What makes Searcy County unique for tax‑deed investors?

Searcy County is a special place for people who want to buy tax-deed properties. It’s beautiful and has the feel of a small town. The Ozark Mountains surround it. There are clear rivers and stunning night skies. About 7,600 people live here, making it one of the least crowded places in Arkansas. Towns like Marshall, Leslie, and Witts Springs have a lot of history and charm. The Buffalo National River runs through the area and is great for paddling. There are also trails for hiking and biking.

Because much of the land is protected, there aren’t many places available for development. This can create a high demand for the few pieces of land that do come up for sale. Investors who enjoy nature and the outdoors might see opportunities for cabins or weekend getaways.

The local economy is modest, with only about 2,855 people working in the county. The biggest jobs are in retail, manufacturing, and healthcare. The average income is around $29,175, while the median household income is about $41,978. Many people struggle with property taxes. That’s why some properties may be sold at lower prices at tax auctions. Plus, there isn’t much competition at these auctions, which gives buyers a better chance to win a property for a low price.

Why Arkansas tax deeds can offer attractive returns

High returns with manageable risk

In Arkansas, buying tax deeds means getting real land, not just interest from unpaid taxes. The land can be worth much more than the taxes owed, which is a great opportunity for buyers. They can later sell it or earn money from rent or other uses.

The initial cost is usually low since you pay the back taxes and maybe a little more for the bid. Sales after July 1, 2023, are final, but there’s a 90-day period where someone can contest the sale. It’s a good idea to wait on major changes to the property until that period ends.

Auction process – step‑by‑step

• Pre‑sale research – Review the Public Auction Catalog for Searcy County on cosl.org and click parcel numbers to access maps and legal descriptions. Visit county assessor and recorder offices to confirm the property’s location, access, zoning and any liens. Walk the land if possible.
  
• Register – Arrive at the sale site about 30 minutes before 10 AM. Bring a valid photo ID and complete a bidder card. There is no registration fee. For online post‑auction sales, create an account at auction.cosl.org, verify your identity and keep a credit/debit card on file.
  
• Bidding – Each parcel’s minimum bid equals the delinquent taxes, penalties, interest and costs. The auctioneer calls for bids; the highest bidder wins provided the bid meets or exceeds the minimum. Former owners and people whose home of record is outside the United States cannot bid under Arkansas law.
  
• Payment – Bring checks or a credit/debit card; cash is not accepted. Full payment is due immediately after the sale. In online post‑auction sales a $100 earnest money payment is charged automatically; the balance must be paid within 10 business days.
  
• Title & litigation period – After payment, you receive a purchaser summary. The COSL records a limited warranty deed in your name. There is a 90‑day period during which interested parties can challenge the sale; if no litigation arises, the deed becomes marketable after quiet‑title action.
  

Expected returns

In Arkansas, there isn’t a set interest rate for investors because they buy deeds instead of liens. Your profit comes from finding property that’s cheaper than its actual value. For instance, if you buy wooded land at a tax sale, you could resell it for much more.

Before bidding, consider the property’s market price, holding costs, and resale chances. This helps you decide your maximum bid to ensure a good return.

Participation of non‑residents

Arkansas welcomes out‑of‑state investors, but there is an important limitation: individuals or entities whose home of record is outside the United States may not purchase tax‑delinquent property. Otherwise, anyone at least 18 years old with proper ID can bid.

The importance of due diligence

What due diligence entails

The COSL wants people who want to buy property to do a lot of homework first. Check the legal papers and maps to see where the property is and how big it is. Look in county records for any debts tied to the property, like loans or taxes owed. If you can, walk around the property. This way, you can spot any problems like blocked access, nearby buildings that shouldn’t be there, or any environmental issues. You might want to talk to a local lawyer or title company. They can help you understand everything better.

Risks of skipping due diligence

• Surprise liens or assessments – Some liens (city liens, improvement district levies or federal tax liens) are not extinguished by the tax sale and may become your responsibility. The COSL warns that properly recorded liens and encumbrances might survive the sale, so unpaid municipal fees can cloud your title.
  
• Imperfect title – The state conveys property via a limited warranty deed, which may require a quiet‑title lawsuit to clear prior interests. Title insurance is not guaranteed and may be unavailable until litigation is completed.
  
• Property condition – Rural parcels may lack road access, have steep terrain or contain improvements of little value. Always verify the property’s usability before bidding.
  

Buying unsold parcels over‑the‑counter (OTC)

Not every property finds a buyer at a live auction. After a public auction ends, any parcels that didn’t sell show up on auction.cosl.org. These unsold properties are sold in online auctions. If someone bids on a property, COSL lets everyone interested know and sets a date for closing the deal. The starting bid is based on taxes and fees, and the person with the highest bid pays a $100 deposit right away. The rest of the money is due within 10 business days.

Investors can also buy properties through OTC purchases. This lets them get properties without bidding against others at a live auction. Bidding online means they can do it from home. Plus, there might be lower prices since fewer people are looking at the online listings.

Why Searcy County is attractive for tax‑deed investors

• Low entry cost – With modest tax bills and little competition, investors can acquire acreage or small dwellings at low prices.
  
• Strong outdoor recreation market – The county’s natural amenities – the Buffalo River for paddling, waterfall trails, the Ozark Highlands Trail and gravel cycling routes – make it attractive for vacation cabins, campgrounds and eco‑tourism. Short‑term rentals could produce cash flow from hikers, cyclists and paddlers.
  
• Scarcity of land – Large portions of Searcy County are public land or steep forest; developable parcels are limited. Tax‑deed investors who secure tracts with road access may benefit from future appreciation as demand for rural escapes grows.
  
• Growing tourism economy – Arkansas tourism spending increased in 2024 and Searcy County has seen visitor spending rise as well. The popularity of dark‑sky viewing and remote recreation suggests long‑term demand for vacation property.
  

Pro tips for successful investing

1. Check the COSL site early – The live auction schedule appears each May. Mark your calendar for Searcy County’s sale and research parcels ahead of time.
   
2. Visit the county courthouse – Nothing beats reviewing deed records and plat maps in person. County clerks can often help locate parcel numbers and older surveys.
   
3. Bring multiple payment methods – If your credit/debit card fails at the sale, a personal or business check can serve as backup. Remember that COSL does not accept cash.
   
4. Budget for title work – Quiet‑title actions can cost several hundred to several thousand dollars. Factor legal fees into your return calculations.
   
5. Be patient – Selling rural property may take time. Consider leasing the land for grazing, hunting or recreation while waiting for a buyer.
   

Frequently asked questions

Q: Do I need to register to bid?
A: Yes. Registration is required. Bring a valid photo ID and sign up about 30 minutes before the auction. There is no registration fee.

Q: Is a deposit required?
A: For live sales, no deposit is required. For online post-auction sales, a $100 deposit is automatically charged to your card if you win.

Q: How do I pay if I win?
A: You must pay the full purchase price immediately after the auction. Accepted payments: personal check, business check, money order, cashier’s check, or credit/debit card. Cash is not accepted.

Q: What is the redemption period?
A: Owners can redeem their property until 4 PM the last business day before the sale. After the auction, there is no redemption—sales are final. However, buyers must wait through a 90-day litigation period in case of challenges.

Q: How does bidding work?
A: Bidding starts at the amount of delinquent taxes, fees, and penalties. Bidders call out offers. The highest bid wins as long as it meets or exceeds the minimum.

Q: Who cannot bid?
A: Former owners of the property and bidders who live outside the U.S. cannot participate.

Useful Links

• Searcy County Website 
• State of Arkansas Commissioner of State Lands
• Arkansas offers a wealth of opportunities with Tax Deed Investing
• Let’s talk about Tax Deeds and how you can profit from them!
• Discover Tax Deeds and how you can find property for as little as $50! 

Need a hand?

Searcy County could be the right place to begin your investing journey. Visit our Auction Calendar to explore available tax-sale listings. Our free resources are built to help you get started, and when you’re ready for extra help, you can book a call for expert guidance.

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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