Buying tax foreclosures can be a very rewarding venture

Buying tax foreclosures can be a very rewarding venture, but it can be risky business as well. It is important to judge the pros and cons of all tax foreclosures to make sure that they are a winning venture, and not a losing one. Here are a few pros and cons of tax foreclosures you should be aware of.


  • Pro: When at auction, you may find that a home goes far below its market value. This means there is a large profit margin to benefit from.
  • Con: Low prices on houses might mean high competition. Be careful not to end up bidding into a home that is having its price raised too much due to the competitive nature of tax foreclosure auctions.

Negotiation Power

  • Pro: When the house is in a less than desirable situation, you may have more power on your side in the negotiations.
  • Cons: The house may also have past bills or history that hinder your ability to negotiate. You never know all the details involved with the home.


  • Pro: Lack of information may mean that the home runs for a lower price, because it is a greater risk. You may end up paying significantly less for a house and come to find out it has no bad history.
  • Con: While it may be a good deal, you may run into a home with many outstanding issues but are unaware due to lack of information.

While buying tax foreclosures can be fun it can also be risky. Always be aware of these factors with every home you potentially buy.