When a Yonkers, New York property owner fails to pay their taxes, then the Westchester County Tax Collector puts a tax lien on the property. The properties are auctioned to the highest bidder through public auction for the amount of taxes owed and fees and costs. Since taxes are a small portion of the property value, you are buying a property for pennies on the dollar. A list of properties is posted on the Westchester County Internet website about six weeks before the tax deed sale. You should note that the redemption period for the owner to pay the taxes and redeem the property is two years from the lien date.
Why Buy Government Tax Sale Properties?
The main reason to purchase government tax sale properties is they are so cheap, and you get a high return on your investment in a short period of time depending on what you decide to do with the property. Some investors keep the properties and rent them out while others flip them. Before you decide to make a bid, you should decide your investment strategy. You need to find out if there are any other liens on the property and drive by the property to determine the condition and view the neighborhood. They are worth investing in if you can find a property you want in the neighborhood of your choice because you are getting a property with a huge profit. You should hire a title company and New York attorney to check the property sales history and whether there are liens on the property. Also, have a local Yonkers Realtor prepare a comparative market analysis for you of recently sold homes so you know the market value of the home you are interested in bidding on. Then you will know for sure if it is truly a good deal or not.
Yonkers also offers investors/buyers opportunities to purchase pre-foreclosures, foreclosures at auctions and REO’s as well as resale properties with motivated sellers. The average price per square foot for a Yonkers home is $206. From November 10, 2010 to January 11, 2011, the median sales price for a Yonkers home was $361,975. The average list price for a Yonker’s home for the week ending February 16, 2011 was $303,852. So you can see how lucrative buying tax deed foreclosure homes can be because you are only buying the property for the amount of back taxes, which is substantially less than the market value of the home. Popular Yonkers neighborhoods include Northwest Yonkers and Southeast Yonkers, where the average list price of homes is $268,299 and $267,57, respectively. Other popular neighborhoods include Nepera Park, with an average list price for homes at $302,633, Nodine Hill, with an average list price of $363,951, Cedar Knolls, with an average list price of $262,282 and Lincoln Park, with an average list price of $331,514.
Yonkers is a great place right now to invest in tax deed properties, REO’s and foreclosures. You can rent the properties out or resell them to another investors and still receive a good return on your investment because you are buying the homes so cheaply. They are also great investment for buyers who want to live in them. Be sure to have your cash lined up for the auction properties and tax deed sales. REO’s and resale properties can be financed. Investors and buyers should be taking advantage of the favorable market conditions.