When someone lists a house for sale these days, they will likely see multiple offers, possibly over the asking price. With the Illinois real estate market so competitive, buyers have had to get a little more creative about acquiring homes.
Going to a tax sale auction could be a great weight for someone with substantial liquid capital to buy a property. You may be able to purchase a home for well under the fair market value because the previous owner has fallen behind on their property tax payments.
Getting a great deal at a tax sale could lead to affordable homeownership, but typically not right away.
You won’t be able to move into the property immediately
Under Connecticut state law, someone who falls behind on their property taxes has the right to redeem the property. At any point leading up to the tax sale, they could potentially pay the amount that they owe and redeem the property.
Their option for doing so persists even after you buy their home at the tax sale. For at least six months after the auction, the prior owner of a single-family home could make good on their tax obligations and redeem the property. Up until that point, you likely do not want to make any investments in the property or move there.
While having the owner redeem the home means you are no longer the owner, you can still make money, including interest on their redemption of the property. Understanding the rules that apply to different forms of real estate acquisition in Connecticut can help avoid losses when buying a new home or investment property.