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If you're an active real estate investor looking for high profits and less competition, then diving into tax deed sales Arizona might be your best option. These types of sales can help you find valuable properties for much less than market value.
This blog post will guide you through how to find and take part in these sales. Once you get the hang of it, you might find yourself with more investment opportunities than you can handle.
Understanding Arizona Tax Deed Sales
Before you can successfully pick ripe investment properties from tax deed sales in Arizona, understanding what tax deed sales are is fundamentally paramount. The state of Arizona uses a 'hybrid' system - a combination of tax lien and tax deed states.
All properties that do not sell at the tax lien sales are bundled together and offered in one bulk sale during a Maricopa County tax deed sale or, depending on the location, a tax deed sale in Phoenix. This system allows the real estate investor to buy the property outright without having to worry about a redemption period or existing mortgages.
If you're interested in finding out more about tax liens and deeds, consider reading our comprehensive guide on property for sale with back taxes.
Why Invest in Arizona Tax Deed Sales
Unlike most real estate investments that require a lot of money upfront, Arizona tax deed sales offer a chance to buy properties for much less. These properties are usually tax delinquent, meaning the owners didn’t pay their property taxes. As a result, they’re sold to cover the unpaid taxes, interest, and penalties.
These auctions often have fewer bidders, which means less competition and a better chance of winning a deal. Investors can also benefit from fast-moving inventory, helping grow their portfolios quickly. Some properties may even come with improvements like buildings or utilities, adding extra value at a low cost.
How to Find Properties for Arizona Tax Deed Sales
Finding properties for Arizona tax deed sales isn’t as hard as it may seem. A good place to start is the Maricopa County Treasurer’s Office for Maricopa tax deed sales or the city offices in Phoenix for tax-deed sales in Phoenix. These local offices publish lists of available properties and auction dates.
Many counties have moved their public records and auctions online, making it easier than ever to browse available properties and participate in bidding from your home or office. Online portals often include maps, parcel numbers, and starting bid amounts, which help investors make faster, smarter decisions.
In addition to checking public records, real estate investors are now using tools like DealMachine to build targeted lists of tax delinquent properties and upcoming auctions. This software helps automate property research with its extensive data, track leads, and send direct mail to property owners, which can give investors an edge in finding opportunities early.
How to Participate in Arizona Tax Deed Sales
Check Auction Schedule & Listings: Public notices are published online or in local newspapers (e.g., Eastern Arizona Courier), usually 1–3 weeks before the sale
Register to Bid: Register in advance or on auction day, depending on the county. Some counties use online auction platforms like PublicSurplus or RealAuction. Provide required documents such as W-9 (or W-8BEN for foreign investors) and pay any registration or deposit fees.
Pay Deposit: A deposit of around 10% of expected bids (often with a $500 minimum) is required online via ACH.
Place Your Bids:
- For Tax-Lien Sales: bid down the interest rate in 1% increments from a starting point (e.g., 16%).
- For Tax-Deed Actions: bidding is for the full amount owed (taxes + fees), usually in an open cash auction format.
Winning the Auction: Highest bidder wins. In over-the-counter sales, the Board of Supervisors reviews and approves submitted offers.
Immediate Payment: Payment is due immediately after winning (cashier’s check, money order, or certified funds). If you fail to pay, you may forfeit your deposit
Receive Your Deed: For tax-deed purchases, a quit-claim deed is prepared, recorded, and issued in a few weeks after Board approval. For tax lien purchases, you receive a certificate; you must wait the redemption period (typically 3 years) before foreclosing in court to get a deed.
While these are the general numbers for Arizona, check your county's website for updates on deposits, holding periods, and more.
The Aftermath of Winning a Tax Deed Auction in Arizona
A win at an Arizona tax deed sale places you under obligation to pay for the property immediately, usually by the close of business on the same day. Property deeds are then prepared within a few weeks following the sale. Winning bidders are allowed to take possession of the property right after the sale, though there might need to evict prior owners or occupants, though this is rare.
Final Thoughts
Tax deed sales Arizona offer great chances for investors to find low-cost properties with less competition. By learning the process, doing your research, and acting quickly, you can build a strong real estate portfolio. While there are some risks, smart planning and understanding the rules can help you avoid most problems and succeed in this investment strategy.