Rhode Island working to ban online tax sales and return to in-person sales only.
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
Rhode Island working to ban online tax sales and return to in-person sales only.
Most Popular Reply
John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votesQuote from @Bruce Lynn:
Not everything online works the way you think it might. While I expect the bids might be higher and more profitable for the taxing entities, sometimes having lots of out of state investor owners does not do well for the property maintenance and upkeep. Guess they have now figured that out and reverting to the old system or working that direction.
I bet a lot of these online bidders never look in person at what they are bidding on and lots of these properties make their way back to future auctions.
If my local auctions went online I would probably stop participating in these auctions.
5 Replies
- 4moJohn UnderwoodPro MemberInvestor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
Quote from @Bruce Lynn:
Not everything online works the way you think it might. While I expect the bids might be higher and more profitable for the taxing entities, sometimes having lots of out of state investor owners does not do well for the property maintenance and upkeep. Guess they have now figured that out and reverting to the old system or working that direction.
I bet a lot of these online bidders never look in person at what they are bidding on and lots of these properties make their way back to future auctions.
If my local auctions went online I would probably stop participating in these auctions.
- Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes4mo
A few years ago when our Texas legislature changed the law to allow online auctions I asked a number of the "authorities" if their county would soon go online. Many of the "ladies" (from the appraisal district and or tax collector) said they were not interested in online sales. Said they already had enough trouble with mowing, abandoned buildings, non-payment of future taxes and all the other trouble these properties can bring to the powers that be. Their opinion was they don't want to complicate things more by selling them to people 1/2 way around the world who will just give them more trouble. They want to get them off the books, paying taxes, and cleaned up. Many said they would never do online sales.
Some counties I've seen here implemented it and then changed back to in person sales. Just depends on the county. Some just take the really bad lots no one locally wants and pawns those flood zone, land locked, vertical lots to someone that doesn't understand. We'll see if that strategy works. Most of the online auctions here we have to put up money first before bidding. Certainly all of them have some kind of steep deposit and the balance due in 24 hours or something like that, if you outbid the deposit.
For me it has been a pain, having to put deposits in on properties you very well may not win. Then having to have it refunded a week later. I guess on the flip side I can bid on many more properties without having to drive 2-4-5-10 hours to one sale. Not sure I have bid any higher, or lost more to worldwide bidders, or bought more because the sales are online now. I really like the in person sales.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes3mo
Quote from @Bruce Lynn:
A few years ago when our Texas legislature changed the law to allow online auctions I asked a number of the "authorities" if their county would soon go online. Many of the "ladies" (from the appraisal district and or tax collector) said they were not interested in online sales. Said they already had enough trouble with mowing, abandoned buildings, non-payment of future taxes and all the other trouble these properties can bring to the powers that be. Their opinion was they don't want to complicate things more by selling them to people 1/2 way around the world who will just give them more trouble. They want to get them off the books, paying taxes, and cleaned up. Many said they would never do online sales.
Some counties I've seen here implemented it and then changed back to in person sales. Just depends on the county. Some just take the really bad lots no one locally wants and pawns those flood zone, land locked, vertical lots to someone that doesn't understand. We'll see if that strategy works. Most of the online auctions here we have to put up money first before bidding. Certainly all of them have some kind of steep deposit and the balance due in 24 hours or something like that, if you outbid the deposit.
For me it has been a pain, having to put deposits in on properties you very well may not win. Then having to have it refunded a week later. I guess on the flip side I can bid on many more properties without having to drive 2-4-5-10 hours to one sale. Not sure I have bid any higher, or lost more to worldwide bidders, or bought more because the sales are online now. I really like the in person sales.
At first I thought online sales for tax liens and foreclosures would be great to open up more competition, and what we have found is it is such a huge headache. In florida we have had one property go to sale 4-5x and each time the buyer backed out (did lose their deposit). we just had another one, $600,000 bid that they walked, and are walking away from $30k which I do not mind but the number of people who lack the understanding to bid has been mind blowing on these online sites. So personally I would rather seem them go back to in person.
7e investments53 Reviews - 3moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @John Underwood:
Quote from @Bruce Lynn:
Not everything online works the way you think it might. While I expect the bids might be higher and more profitable for the taxing entities, sometimes having lots of out of state investor owners does not do well for the property maintenance and upkeep. Guess they have now figured that out and reverting to the old system or working that direction.
I bet a lot of these online bidders never look in person at what they are bidding on and lots of these properties make their way back to future auctions.
If my local auctions went online I would probably stop participating in these auctions.
sure changed the game in the counties in CA that we had been working in since the 60s.. no fun anymore bidding against peeps you cant see..
- Real Estate Broker · Pittsburgh, PA · Member since 2024 · 2 posts · 0 votes4w
As an auctioneer, I personally love in person sales, it goes back to the psychology of being in the room with others and some people who get lost in the moment and bid a bit more than they would have otherwise.
On the real estate side, I think it eliminates some headaches since the people will either be local or make the trip to bid vs online where people see a video about the sales, Google an upcoming online sale and blindly bid.
The county i live in still is doing virtual sherrif sales whereas the surrounding ones do in person. I wish they'd go back in person, for some of the same reasons.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.