I have been studying tax deed investing for a little bit. I live in a deed state but I haven't had a chance to invest at a real auction.

I'm wondering if you folks can answer my scenario/question.

As an example, let's say the market value of a property is $100k and you are bidding on it on a tax deed auction.

What would be the typical discount I might be able to get at a tax deed sale? I am looking for an estimate or maybe something you have seen. I know this varies but wanted to get an idea.

I've heard there are certain places like CA that the bidding goes almost to full fair market value. I am wondering what kind of discount on the price would make it worthwhile.

The price you will be able to get will vary. It depends mostly on the desirability of the property as well as the competition in the room.

In California competition tends to be higher than most other states and the bidding can reach fair market value. In fact, before the bubble popped many investors would bid the property back to FMV and even higher counting on increasing real estate values to make a return.

It's possible to get properties for 10 cents on the dollar and it's possible to get properties for 80 cents on the dollar. There are many variables.

What is important for you to do is pick your properties and determine a set amount that you won't bid past. If it's worth it to you to bid a $100k to $50k then don't bid past $50k.

There are also many excellent deals found through this website in the Marketplace. We can help you find great deals through our database.

Depends how many people are bidding on the same property. I have seen 150k Value homes go for 70K and I have seen 125k Value home go for 8K. The smaller the auction the better off you are.