San Diego County to Auction 749 Tax-Defaulted Properties in March 2025
TL;DR
- San Diego County will auction 749 tax-defaulted properties from March 14-19, 2025—the largest sale in seven years
- This represents a 152% increase from the May 2024 auction, which featured 297 parcels
- Previous auctions have seen properties sell from as low as $100 for timeshares to $480,100 for a Pacific Beach condo
- Bidders must register in advance and submit a $1,000 refundable deposit plus $35 non-refundable processing fee
- Properties are available because owners are at least five years delinquent on tax payments
San Diego County is preparing for its largest tax-defaulted property auction in seven years, with 749 parcels scheduled to go under the virtual gavel from March 14-19, 2025. This massive sale represents a 152% increase from the May 2024 auction, which featured just 297 properties, signaling a significant uptick in tax delinquencies across the region.
According to the San Diego Union-Tribune, the upcoming auction will attract investors, homebuyers, and bargain hunters from around the world, all competing for properties that range from oceanfront condos to undeveloped land parcels. Dan McAllister, San Diego County Treasurer-Tax Collector, noted that "the Treasurer-Tax Collector's Office thoroughly researches tax-defaulted properties to identify parties of interest" before each auction.
What Are Tax-Defaulted Properties in San Diego County?
Tax-defaulted properties are real estate parcels seized by local government due to the owner's failure to pay property taxes for an extended period. In San Diego County, properties become eligible for auction when owners are at least five years delinquent on tax payments and have not enrolled in a Five-Year Payment Plan or redeemed the debt by paying in full.
The process begins when delinquent secured accounts are transferred to the defaulted tax roll. An additional 18% annual interest charge (1.5% per month) is applied to the base amount, plus a $33 redemption fee. After five years without resolution, the Treasurer-Tax Collector has the "power to sell" these properties at public auction to the highest bidder.
Some parcels in the upcoming March 2025 auction have been declared public nuisances, adding urgency to their sale and potential opportunity for buyers willing to address property issues.
Why Is the March 2025 Auction the Largest in 7 Years?
The 749 properties scheduled for the March 2025 auction mark a dramatic increase compared to recent years:
| Auction Date | Properties Offered | Properties Sold | Sale Rate | Revenue Generated |
|---|---|---|---|---|
| March 2025 | 749 | TBD | TBD | TBD |
| May 2024 | 297 | 90 | 31% | $503,000+ |
| March 2024 | 468 | 59 | 13% | $3.6 million |
The 152% increase from May 2024 to March 2025 suggests several potential factors at play in the San Diego real estate market:
Economic Pressure
Rising property taxes combined with inflation and interest rate increases may have stretched some property owners beyond their financial limits.
Pandemic Aftermath
The end of foreclosure moratoriums and tax payment extensions from the COVID-19 era has likely contributed to the backlog of delinquent properties now reaching the five-year threshold.
Property Investment Challenges
Some investors who purchased properties during the real estate boom may be struggling with carrying costs, especially for properties that aren't generating expected rental income.
Inherited Properties
Heirs who inherit properties but cannot afford the tax burden may allow them to fall into default rather than selling through traditional channels.
How Does the San Diego County Tax Auction Work?
The March 2025 auction will be conducted entirely online through the county's official platform at sdttc.mytaxsale.com, making it accessible to bidders worldwide. Here's what prospective buyers need to know:
Registration Requirements
Advance registration is mandatory for all bidders. To participate, you must:
- Submit Registration by Deadline: All registration materials and bid deposit payments must be received by Grant Street Group no later than 5 p.m., Pacific Time, on the Friday before the auction begins
- Pay Refundable Deposit: A $1,000 deposit is required (some parcels may require a larger deposit)
- Pay Processing Fee: A non-refundable $35 processing fee must be submitted with registration
- Complete Online Registration: Register through the official county website at sdttc.mytaxsale.com
Bidding Process
The auction runs for six days (March 14-19, 2025), allowing bidders to compete online from anywhere in the world. Properties are sold to the highest bidder, with no minimum bid requirements beyond the opening bid set by the county.
Payment Requirements
Winning bidders must act quickly:
- Payment Deadline: Full payment must be received within five (5) business days from the close of the auction
- Consequences of Non-Payment: Failure to complete the sale results in forfeiture of your deposit
- All Sales Final: This is a "buyer beware" sale with no refunds or returns
Post-Auction Opportunities
Unsold parcels may be re-offered within a 90-day period following the main auction, providing additional opportunities for buyers who missed the initial sale or for properties that didn't meet reserve prices.
What Types of Properties Sell at San Diego Tax Auctions?
Based on past auction results, San Diego County tax sales feature an extremely diverse mix of properties:
Residential Properties
The May 2024 auction included a notable one-bedroom Pacific Beach condominium that initially listed at $165,000 but sold for $480,100—nearly triple the opening bid. This demonstrates the competitive nature of desirable properties in prime San Diego locations like Pacific Beach, La Jolla, Mission Beach, and Ocean Beach.
Timeshares
On the opposite end of the spectrum, timeshares have sold for as little as $100, offering ultra-low-cost entry points for buyers interested in vacation properties or resale opportunities.
Undeveloped Land
Many tax-defaulted parcels consist of vacant land in various San Diego neighborhoods, from North Park to more rural areas of the county.
Commercial Properties
While less common, commercial parcels do appear in tax auctions, particularly small retail or office spaces.
Properties with Issues
Some parcels have been declared public nuisances, meaning they may require significant cleanup, repairs, or code compliance work.
What Are the Risks and Opportunities for Buyers?
Opportunities
- Below-Market Pricing: Tax-defaulted properties often sell below market value, though competition can drive prices higher for desirable locations.
- Investment Potential: For experienced investors, these properties offer opportunities to acquire real estate at potentially significant discounts, especially in neighborhoods like Pacific Beach, La Jolla, and North Park.
- Less Competition Than Traditional Sales: While the May 2024 auction drew nearly 1,000 registered bidders, only 30 people actually purchased properties, suggesting that many registered bidders don't follow through or get outbid.
- Diverse Portfolio Building: The range of property types allows investors to diversify their real estate holdings across residential, commercial, and land parcels.
Risks
- No Inspection Access: The County does not have possession or control of the properties and cannot grant access for inspections before the sale. Buyers must bid sight-unseen in many cases.
- Hidden Problems: Distressed properties may have significant repair needs, code violations, liens, or other costly issues that aren't immediately apparent.
- No Guarantees or Warranties: All sales are final with no recourse if problems are discovered after purchase.
- Occupied Properties: Some properties may still be occupied by former owners or tenants, requiring legal eviction proceedings.
- Title Issues: While the county provides basic title information, buyers should conduct their own title research to identify potential encumbrances.
- Competitive Bidding: As the Pacific Beach condo sale demonstrated, desirable properties can sell for well above opening bids, potentially eliminating the discount advantage.
How Does This Affect the San Diego Real Estate Market?
The surge in tax-defaulted properties provides important signals about the current San Diego real estate landscape:
Market Stress Indicators
The 152% increase in available properties suggests that more San Diego property owners are experiencing financial difficulties, potentially due to high property taxes, rising interest rates, and inflation.
Inventory Addition
With 749 properties entering the market, the auction represents a significant inventory boost for buyers in a region that has experienced housing shortages.
Price Impact
While individual tax auction properties may sell below market value, the overall impact on San Diego's median home prices is minimal given the small percentage these properties represent of total market activity.
Opportunity for Cash Buyers
Investors and companies like San Diego Fast Cash Home Buyer are well-positioned to capitalize on these opportunities, as tax auctions favor buyers who can close quickly with cash.
Should You Participate in the March 2025 Tax Auction?
Whether the San Diego County tax auction makes sense for you depends on your experience level, financial resources, and risk tolerance:
- Ideal for Experienced Investors: Those with real estate investment experience, cash reserves, and the ability to handle potential property issues will find the most success.
- Requires Due Diligence: Successful bidders conduct thorough research before the auction, including property record searches, neighborhood analysis, comparable sales research, and visual inspections (even if limited to exterior views).
- Consider Professional Guidance: Working with real estate agents, property managers, or companies specializing in distressed properties can help navigate the complexities of tax auction purchases.
- Cash Is King: Since payment is due within five business days, you need immediate access to funds—no traditional mortgage financing is available.
- Alternative Options Exist: For sellers facing tax delinquency who want to avoid auction, working with cash buyers like San Diego Fast Cash Home Buyer can provide a faster, more certain solution while preserving equity.
Frequently Asked Questions
When is the San Diego County tax auction in 2025?
The San Diego County tax-defaulted property auction is scheduled for March 14-19, 2025. Registration must be completed before the deadline, typically the Friday before the auction begins. All bidding is conducted online through sdttc.mytaxsale.com.
How many properties will be auctioned in March 2025?
San Diego County will auction 749 tax-defaulted properties during the March 2025 sale, making it the largest tax auction in seven years. This represents a 152% increase from the 297 properties offered in May 2024.
What is the minimum bid for tax auction properties in San Diego?
There is no universal minimum bid. Each property has an opening bid set by the Treasurer-Tax Collector's Office based on the amount of delinquent taxes owed plus interest, penalties, and fees. Past auctions have seen opening bids range from $100 for timeshares to hundreds of thousands of dollars for residential properties.
Can I inspect properties before the tax auction?
No, San Diego County does not have possession or control of tax-defaulted properties and cannot grant interior access for inspections. Buyers must conduct research using public records, exterior observations, and available online information. All sales are final with no recourse for undiscovered issues.
What happens if I win a bid but can't pay?
If you are the winning bidder but fail to complete payment within five business days from the close of the auction, you will forfeit your $1,000 deposit (or higher if required for your parcel). The property may then be offered to the next highest bidder or returned to the re-offer auction.
Why do properties go to tax auction in San Diego?
Properties go to tax auction when owners are at least five years delinquent on property tax payments and have not enrolled in a payment plan or paid the debt in full. Common reasons include financial hardship, inherited properties the heirs cannot afford to maintain, investment properties with negative cash flow, or abandoned properties.
What was the most expensive property sold at a recent San Diego tax auction?
A one-bedroom Pacific Beach condominium sold for $480,100 at a 2024 San Diego County tax auction, despite an initial listing price of $165,000. This demonstrates how competitive bidding for desirable locations like Pacific Beach, La Jolla, and Mission Beach can drive final sale prices well above opening bids.
Facing Tax Delinquency? We Can Help Before Auction
If your San Diego property is at risk of tax foreclosure, you have options. San Diego Fast Cash Home Buyer can provide a quick cash offer that preserves your equity and helps you avoid the public auction process. We specialize in helping property owners across Pacific Beach, La Jolla, Mission Beach, Ocean Beach, North Park, and all San Diego County neighborhoods.
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