I think that everyone who has been purchasing property for a while has seen a huge shift in the tax sales over the last few years.
In my limited experience (about 10 years) I would say that when prices are going up two things seem to happen. I seem to see and hear much more often ads for ‘how to get rich quick with real estate’. Also more new 'investors' enter the market and many seem to think that they can’t lose.
The last time I was looking to seriously buy at the auction I was outbid by quite a bit. It kept going by three people that I had never seen before. The victors were a very nice husband and wife. I should explain that I buy and rent out, so sometimes I can afford to pay more than a flipper, depending on the numbers. My goal is good cash flow so I don’t need a big margin between investment and sale price depending on the property. They were sitting close to me so I talked with them afterwards. They had just taken a class. They had big plans to get rich in flipping. I asked what they knew about the property and the neighborhood. They did not know much. They didn’t even know if the property was homestead (it was not). I suggested that they renovate and rent it because the neighborhood was due for a change. They paid almost full price for a property that needed top to bottom renovation. I provided my contact info and wished them well. Never heard from them. By my experience if they flipped the property they likely lost money but if they kept it for two years they probably did alright.
There are still some deals at the action but not as many. There is too much competition with people that don’t seem to care what they pay. Some are well informed, some are speculating and some are hoping that they will get rich quick. I would suggest you widen your scope. Research a dozen or so and about half should make it to the auction. Know your numbers and what will work for you. Everyone has their own end game. Know your plan. Don't over bid just because you think that they other guy know something. Also watch the bidders and get to know who they are so you can gauge what type of bidder they are. Get to know some of the regulars.
Good luck.
