How much money do counties make at tax auctions?
The amount of money counties make at a single auction depend on the number of properties and the number of bidders. When counties publish a press release about home much money the will raise at a tax auction, the numbers are usually based on every property selling for the minimum bid.
Every property certainly can sell at an auction, but it is optimistic to think that over 3,000 properties will go.
On October 5, Beaufort County, SC will hold its tax sale. They have about 3,600 properties as of today and stand to make $5 million if they all sell. That is a lot of money the county is missing out on in delinquent property taxes. They probably will not sell them all because of the number available, but they will recoup a lot of the delinquent tax money from the sale.
Cass County, MI just held one of two tax auctions and sold all 26 properties and made $247,500 with 17 more properties coming up for sale in about a week.
The money doesn’t always go directly to the county directly. The money is often divided up between the school district, municipalities, and the county. They all use the property tax money to function so the tax sales are important to them.
How much money counties make at tax sales is far less than if each property sold at market value, but they would rather sell it quick for what is owed rather then spend six months or more trying to sell each property individually for more money. They want the property back on the tax roll.
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