1604 3rd Ave E, Spencer, IA 51301

Due diligence checklist

1. 01

   Pull a title report

   Confirm what liens survive the sale. Many tax sales wipe junior liens but not federal IRS or municipal liens. A title company can run this for ~$50-150.

2. 02

   Drive by the property

   Check occupancy, exterior condition, signs of vandalism, neighborhood comps. You won't get inside before the auction in most cases.

3. 03

   Have funds ready before bidding

   Most sheriff/tax sales require payment same-day or within 24 hours via cashier's check or wire. Pre-approval letters are not accepted.

4. 04

   Run the numbers

   Add holding costs (taxes, insurance, utilities), renovation budget, and selling costs to your max bid. A property at 60% of ARV often needs 30%+ in repairs.

5. 05

   Talk to a real-estate attorney

   Distressed sales in IA have rules that vary by county. A 30-min consult before your first auction is worth it.