Auction
Interest Rate Bid-Down
A tax lien auction format where investors compete by accepting a lower interest rate rather than paying a higher price.
The bidder willing to accept the lowest rate wins the certificate. Heavy competition can push rates close to zero on desirable parcels.
A low rate does not end the investor's risk; the owner may redeem quickly, or the property may be worth less than the debt.
How it works by state
- Florida
- Florida certificate auctions start at 18% and bid down. Certificates redeemed quickly still earn a minimum return under state law, except at a 0% bid.
General information, reviewed 2026-10-12. Not legal advice. Rules change and each county publishes its own sale terms; confirm with the county before bidding.