Real Estate Journal Online

In a transaction that helped Harding, New Jersey recoup almost $52,000 in property taxes and that snagged one savvy buyer a luxurious estate at a 71 percent discount, a New Vernon estate in Harding, New Jersey was sold for $6.4 million online[1]. The estate, called Fawn Hill, sold in November of 2010 at what is known as an “absolute auction,” which basically is an auction with no minimum or reserve. The house goes to whoever bids the most.

This auction is a great example of why both real estate investors and private home buyers follow tax lien progress and tax auctions so closely. The 21-room estate, which boasts seven bedrooms and bathrooms, seven fireplaces, an elevator and a bowling alley, was sold at a $16 million discount online. In this instance, potential bidders did have to put down $100,000 to show that they were serious and had the funds to make the purchase in the event that they won, but most tax lien and tax deed auctions require far more minimal deposits or, in some cases, no deposit at all.

In the case of Fawn Hill, the auction company worked hard to identify and contact “buyer prospects” for the home before the auction began[2]. However, in most cases, it is up to the potential buyers of foreclosure homes that are deep in tax delinquency to identify the best prospects at a given auction. What methods do you prefer when it comes to finding tax auction potential and targeting it for productive investing?

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[1] http://www.dailyrecord.com/article/20110123/COMMUNITIES/110121045/1005/NEWS01/Harding-estate-sells-for-16-million-below-asking-price

[2] http://www.prnewswire.com/news-releases/concierge-auctions-closes-2010-with-successful-sales-in-10-states-including-a-number-of-record-transactions-113027284.html