How to Maximize Your Gains at the Sebastian County, Arkansas Tax Deed Sale

In Sebastian County, which is near Fort Smith, they have these auctions in the middle of summer. This guide will help you understand how the auctions work, why people like to buy properties at these auctions, and give you some information about Sebastian County, like its economy, things to do, and what the market is like.

What Is a Tax Deed?

A tax deed is a piece of paper that makes you the owner of a property after buying it at a tax sale. A tax sale happens when someone does not pay their property taxes, and an attempt to recoup the owed money, the county sells the property. Once purchased at auction, the county then gives you a tax deed, officially making you the legal owner of the property, usually at a significantly reduced cost from market value.

Brief overview of Sebastian County Arkansas tax‑deed investing

Sebastian County, where Fort Smith is located, has a special way of selling homes when people don’t pay their property taxes. If someone falls behind on their taxes, the property can be sold at a tax-deed auction. These auctions usually happen in the summer at a big place called the Fort Smith Convention Center.

Durng the auction, people can bid on homes, starting with the amount of money that is owed in taxes and fees. The person who bids the most money gets the house.

If someone can’t be there in person for the auction, any houses that don’t sell will go up for sale online 30 days later. This gives people another chance to buy a house in the Fort Smith and Greenwood area. It’s a good opportunity because houses can often be bought for much less money than usual, thanks to the strong economy and need for homes in the area.

Important details about Sebastian County’s tax‑deed sale

Item	Details & sources
Tax sale type	Tax deed.
Typical sale date	Auctions are held between July to September and Dates varies each year
Auction time & time zone	Live auctions begin at 10 a.m. Central Time; registration typically opens at 9 a.m. The COSL encourages bidders to arrive early to register and obtain a numbered bidder card.
Registration required?	Yes. All bidders must register on‑site before bidding and present a U.S. federal or state ID.
Auction location	Locations may change annually if venues are booked.
Redemption period	None
Bid procedure & terms	Bidding starts at the amount of delinquent taxes, penalties and interest owed on each parcel. Bidders raise the price orally; the highest bid wins, but at a minimum the taxes due must be met
Payment terms	Full payment is due immediately at the auction; no time‑payment plans. Accepted forms include personal or business checks or credit/debit cards. Cash is not accepted.
Deposit	Live auctions require no deposit; buyers pay the entire amount at checkout. Online unsold‑property auctions charge a $100 “earnest money” deposit, applied toward the purchase price.
Contact for information	Commissioner of State Lands Office – phone: 501‑324‑9422; email: [email protected]

How to Bid at an Auction – Simple Steps

1. Register and Get Your Bid Card: First, you need to sign up and get a special card to bid. Bring an ID from the government, like a driver’s license, and come around 9 a.m. 
2.  Look at the Catalog: Check out the list of items (called parcels) online before the auction. At the auction, they will call out each item one by one.
3. Make Your Bid: When it’s your turn, you can start making bids. The first bid starts at the amount of unpaid taxes and fees. To bid higher, just raise your paddle.
4. Pay for What You Win: If you win, you need to pay right away. You can pay with a check or a card, but not with cash.
5. Get Your Receipt and Deed: After you pay,you’ll receive a special paper called a deed that proves you own what you bought.

Why invest in Sebastian County’s tax‑deed auctions?

High returns with low risk

In Arkansas, when people don’t pay their property taxes, the state sells the actual property instead of just a paper claim. This means that people can buy land for much less money than what it’s worth. For example, in a recent auction in Sebastian County, 34 out of 35 pieces of land were sold, and they made a total of $592,245.61! With only 111 people trying to bid, there isn’t always lots of competition. Investors can either sell the land later or rent it out, which can help them earn a lot of money each year.

Short redemption window

Arkansas has a short time for property owners to pay their taxes. They need to pay up by 4 p.m. on the last business day before the auction, or they lose their property. If a property doesn’t sell at the auction, the owners have ten business days to pay the taxes. This means investors can get control of the property much faster than in other states, where it can take one to three years!

Organized statewide system

The Central Office of State Lands (COSL) helps make the auction process smooth. They provide updated lists of land, maps, and past sale information online. If a property doesn’t sell at the auction, people can buy it at a set price without bidding, 30 days later. This makes it easier for investors.

Open to U.S. Investors

Only people with a U.S. ID can bid in these auctions. People from other states can join in, but those from other countries cannot. This rule helps keep things fair and allows more people to invest.e rules.

Fun facts about Sebastian County

• Dual county seats. Sebastian County has two main towns where the county government works – Greenwood and Fort Smith. This happened because a long time ago, people disagreed about where the county seat should be.
• Fourth‑largest county by population. According to the 2020 census, there were 127,799 people living in Sebastian County, making it the fourth most populous county in Arkansas. It is expected to have 129,076 people by 2025.
• Small but central. Sebastian County is the second smallest county in Arkansas, covering 546 square miles (that’s mostly land). Even though it isn’t very large, it is an important part of the Fort Smith area.
• Transport crossroads. Sebastian County has several major roads, including Interstates 49 and 540 and U.S. Highways 64, 71, and 271. Fort Smith Regional Airport is located just a little bit southeast of the downtown area and helps people travel in western Arkansas and eastern Oklahoma.

Attractions and economic highlights

Popular attractions

Sebastian County has many fun and interesting places to visit. In Fort Smith, there’s the ArcBest Performing Arts Center, where people can see music shows, plays, and other performances. Close by, you can find the Bass Reeves Monument, a huge bronze statue that honors the first Black U.S. deputy marshal west of the Mississippi River. If you love history, you can explore the Belle Grove Historic District, which has beautiful old Victorian homes and museums. Families enjoy Ben Geren Regional Park, a big park with walking and biking trails, golf courses, and a fishing lake. There are also bowling alleys, arcades, and shopping places like Central Mall for more fun activities.

Transportation infrastructure

Sebastian County is in a great spot and has good roads, which helps its economy. Highways like Interstates 49 and 540 help connect Fort Smith to nearby cities, and the Fort Smith Regional Airport is just a short drive from downtown. There are also train tracks and the Arkansas River, which help move goods and support local businesses.

Economic development

Fort Smith has different jobs for people to do. Some jobs are about making things, bringing things to people, helping sick people, and teaching kids. There are some big companies in Fort Smith, like ArcBest, which helps move stuff, Rheem Manufacturing, which makes air conditioners, and Riverside Furniture, which makes furniture. The University of Arkansas, Fort Smith helps train people for these jobs.

Community appeal

The county is great for outdoor activities, with more than 21 miles of trails for walking and biking at Ben Geren Park, plus fun activities at Torraine Lake and in the Ouachita National Forest. Fort Smith has festivals, farmers markets, and art events throughout the year, while Greenwood offers a friendly small-town atmosphere. The cost of living is affordable, and it’s easy to get around, making it a great place for families and new businesses to grow.

Why Sebastian County tax‑deed auctions are a smart investment

1. Strong economic base. There are many factories and transport companies that give people jobs, which helps more families find homes.
   
2. Short redemption and fast turnover. Investors can take over properties fast because owners have to pay their taxes before the auction happens
   
3. Reasonable competition. In recent auctions, many people tried to buy 45 properties, so there are chances for smart buyers to get good deals
   
4. Affordable entry. The starting bids are usually just the unpaid taxes, which is often much lower than what the property is really worth.
   
5. Organized process. COLS helps by providing information, maps, and online bidding for properties that didn’t sell, making it easier for everyone to research.

Understanding the auction process

How the auction works

1. Pre‑sale research. Do some homework first! Look at the COSL catalog to check out the pieces of land. Make sure you know where they are, what the rules are for that land, if there are any debts on them, and if there are any city fees. You can also visit the county office to get information about the land’s ownership.
   
2. Registration. Get to the auction location around 9 a.m. Bring a U.S. ID, like a driver’s license. You will get a card that lets you bid. There’s no fee to sign up!
   
3. Bidding. The auctioneer will show the different pieces of land one by one. Bidding starts at the amount of back taxes owed on the land. To bid higher, just lift your card! The person who offers the most money wins.
   
4. Payment. Right after you win, you need to pay the full price with a check or a credit/debit card. You can’t use cash. If you don’t pay on time, you might lose your purchase and not be able to join future auctions.
   
5. Post‑sale. The COSL issues a receipt and records the sale. After the 90‑day litigation period, the limited warranty deed is mailed to the buyer. The buyer is responsible for paying the current year’s taxes by October 15.

 Expected returns on tax‑deed certificates

When people buy houses or pieces of land that are not being taken care of and the owners owe money on them, the money they make later depends on how much they can sell them for and how much it costs to keep them. Many of these places are empty lots or houses that need fixing. If someone does their homework and checks carefully, they can find good pieces of land or houses to buy at lower prices. Since there is a limited time to buy them back and there might be some problems with the ownership, buyers should plan to spend some money on legal help if they want to sell or fix the property later. Still, people who do this well can make a lot more money compared to just letting their money sit in a savings account.

Foreign investor participation

In Arkansas, people from any U.S. state can join the auctions and buy things. But if you live in another country, you can’t bid by yourself. If you want to buy something and you live outside the U.S., you need to team up with someone who lives in the U.S. to help you.

Importance of due diligence in Arkansas tax‑deed investing

What due diligence means

• Property Check: If you can, go see the property. Look at how you can get there, what the land is like, the buildings on it, and what the neighborhood is like.
• Title Search: Look at the county’s records to see if anyone owes money on the property or if there are any rules about it. Some money owed (like from the IRS or city fees) might still be there even if the property is sold for taxes.
• Zoning and Rules: Make sure you know what the property can be used for and if there are any restrictions. Check if the property is cut off from roads or if there are any special permissions needed to use it.
• Cost Check: Think about all the costs you might have to pay, like for fixing any legal issues, tax payments, insurance, and any other costs while you own it.

Risks of skipping due diligence

If you don’t look into a piece of land before buying it, you might find out it has problems. It could be hard to get to, or there might be issues like pollution or old bills that haven’t been paid. When people buy land, they usually get a special kind of ownership called a limited warranty deed, which doesn’t always mean they have the best title. Sometimes, they may need to do something called a quiet title action to clear up any confusion about who owns the land.

Buying over‑the‑counter (OTC) liens/deeds in Arkansas

How to purchase OTC properties

If some pieces of land are not sold after a big sale that happens in public, they get put on a special list called the Unsold Property Auction list. People who want to buy these pieces of land can sign up on a website, show who they are, and place their bids. To bid on a piece of land, you need to pay a $100 deposit. The auction lasts for 30 days. At the end of the 30 days, the person who bids the most money pays for the land and gets the paperwork to own it. If no one bids on a piece of land, it can still be bought directly at a set price.

Benefits of OTC purchases

• Fixed price. No bidding wars; reserve prices are typically the amount of taxes owed.
  
• Extended research time. Parcels remain online, allowing thorough due diligence.
  
• Lower competition. Many investors focus on live auctions, so OTC parcels may be overlooked.

Pro tips for Sebastian County tax‑deed investors

• Pre‑register online. Use the COSL portal to study parcel maps and previous sale results.
• Arrive early. Registration opens around 9 a.m. and closes when bidding begins.
• Bring multiple payment options. Personal or business checks and credit/debit cards are accepted; cash is not.
• Budget for current taxes. Winning bidders must pay the current year’s taxes by October 15
• Consult professionals. Hire a title company or attorney to clear title and advise on legal matters
• Inspect properties. Many parcels are vacant or distressed; drive by or hire a local agent to inspect before bidding.
• Avoid overbidding. Determine your maximum bid based on realistic resale or rental value.
• Monitor OTC listings. Bargains often appear in the post‑auction sale list.

Frequently asked questions (FAQs)

When are Sebastian County tax sales held?
Live auctions are usually scheduled between July and October.

What time do auctions start and when does registration open?
Auctions start at 10 a.m. Central Time, with registration typically opening around 9 a.m..

Do I need to register to bid?
Yes. Bidders must register on site, provide a U.S. ID and obtain a bidder card.

What is the minimum bid?

Bidding opens at the amount of delinquent taxes, penalties and interest due.

Do I have to pay immediately?
Yes. Full payment is required at the auction; personal or business checks and credit/debit cards are accepted.

Can I pay with cash?
No. The COSL does not accept cash payments for parcels.

How long is the redemption period?
Owners may redeem a parcel until 4 p.m. the last business day before the auction. For post‑auction sales, the redemption period is 10 business days

Are auctions open to foreign investors?
No. Bidders must provide a U.S. federal or state ID; non‑U.S. residents cannot purchase parcels.

Where can I find parcels available for sale?
The COSL posts parcel lists, maps and auction dates at cosl.org. Unsold properties appear in the Post‑Auction Sales list 30 days after the auction.

Useful links

• Sebastian 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! 

Ready to get started?

Sebastian County tax-sale properties are available for review in our Auction Calendar. Explore upcoming listings and use our free resources to understand what to expect. If you’d like help building your strategy or reviewing your options, book a call and talk to an expert.

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