Why North Carolina is the Hottest Market for Tax Deed Sales

Investors of all experience levels are scrambling to find the next best market for tax deed sales. With the majority of sales moving online, competition has intensified nationwide. While online platforms offer incredible benefits—allowing investors to participate in sales without traveling to multiple courthouses—they also come with the drawback of increased bidding activity. This shift, combined with a strong economy and North Carolina’s natural beauty, has made the state one of the most sought-after markets for investors.

North Carolina’s Investment Appeal

North Carolina boasts a robust economy, stunning landscapes, and a variety of vibrant regions. The Charlotte-Mecklenburg County area is experiencing impressive growth, while the Research Triangle, centered around Raleigh and Durham, is a hub for innovation and education. To the west, the Smoky Mountains offer scenic beauty, and to the east, the Outer Banks provide breathtaking coastal views. These geographical and economic advantages are complemented by the presence of top-tier universities and a strong job market. Additionally, military bases in the state create further economic stability, making North Carolina an attractive destination for real estate investors using fix-and-flip or buy-and-hold strategies.

The North Carolina Tax Sale Process

Despite its many advantages, North Carolina’s tax sale process can be complex. Unlike many other states where tax sales are conducted online, North Carolina’s sales are held at county courthouses. This requires investors to be physically present or to hire a proxy bidder, adding logistical challenges.

Another unique aspect is the “upset bid” period, which follows the initial auction. Unlike Florida’s tax deed sales, where the highest bidder wins outright at the close of the auction, North Carolina allows a ten-day upset bid period after the final bid. During this time, new bids can be placed but must be at least 5% higher than the previous bid. Each new bid restarts the ten-day window, which can extend the process significantly. This means that out-of-town investors must be prepared to stay in the area longer or monitor the bidding process remotely.

Completing the Sale

Once the upset bid period ends without additional bids, the winning bidder typically has two weeks to pay the remaining balance. After this, the county issues a commissioner’s deed, transferring ownership to the successful bidder. However, it’s important to note that commissioner’s deeds, like tax deeds in other states, do not come with a warranty. This lack of warranty means there is no guarantee of clear title, which can create challenges for investors when they want to sell, refinance, or retain the property with peace of mind.

Why Tax Sales in North Carolina Are Worth It

For investors new to tax sales or seeking alternatives to quiet title actions, North Carolina’s tax sale market offers tremendous opportunities. The state consistently hosts tax sales through three main attorney offices, ensuring a steady stream of properties. Investors can explore a variety of properties across North Carolina’s diverse regions and select those that align with their comfort level and investment strategy.

Next Steps for Investors

If you’re considering entering the North Carolina tax sale market, preparation is key. Research the properties available, familiarize yourself with the upset bid process, and plan for the logistical challenges of participating in courthouse sales.

And if you’re unsure how to handle title issues after winning a tax sale, consider reaching out to Tax Title Services for guidance on obtaining title insurance without going through a quiet title action.

We have been in business for over 20 years and certified 40,000+ tax sale properties for title insurance nationwide.