JJ Hollingsworth thought she’d stumbled on the deal of a lifetime: a million-dollar property in San Francisco’s Sunset District for just $25,000, offered through an auction on tax-delinquent land packages.

She recognized the address, 1926 Kirkham St., as the house next to her own. So she and her partner Alemayehu Mergia put in a sealed bid, and won.

The first sign that something was up came when the city refunded the $8,000 check Hollingsworth had included to cover transfer tax (1). But the real shock hit her when she took a closer look at the paperwork and realized that the parcel of land she now legally owned wasn’t the house across the alley at all: It was the alley itself, known as Dirt Alley on Google Maps, or at least the first 82 feet of it (2).

The couple — who made the decision to bid at the last minute — missed several key pieces of information, including the opening line of the letter sent to them about the tax sale, which spelled out that the auction was for pieces of land “rendered unusable by their size, location, or other conditions.”

The tiny slivers of land auctioned have no prospect of development, and are often most useful to adjacent properties for parking or garden space, which is why local authorities approach the owners of nearby properties with news of upcoming auctions. In the case of Dirt Alley, that meant notifications were mailed out to five owners.

All mailings included a diagram of the property up for auction and the detail that the land up for grabs had a parcel number that corresponded with the alley. However, the street address given was 1926 Kirkham, which is a two-story triplex that last changed hands for just north of $1 million in 2024.

Still, the tax collector’s office is adamant that it did everything it could to make clear exactly what property was being offered in the auction.

Amanda Kahn Fried, chief of policy and communications for the local tax authority, told CBS News in a statement that the office followed state law and provided “an accurate parcel map and clear language,” and also gave bidders the opportunity to ask questions before submitting offers.

“While we regret that any bidder may have misunderstood the nature of a parcel, the City cannot assume responsibility for errors that result from a bidder not reviewing the publicly available materials carefully,” the statement said.

Language from the section of the website of the Office of the Treasurer & Tax Collector of the City and County of San Francisco that leads into the auctions section is even blunter:

“All property is sold as is. Be an informed bidder. Prospective purchasers are urged to examine the title, location and desirability of the properties available to their own satisfaction prior to the sale … Bidders are responsible for knowing what they are purchasing … ALL SALES ARE FINAL” (3).

For the new owners of Dirt Alley, there might be a way out: the sale can be rescinded if the San Francisco Board of Supervisors, the region’s city government, votes that way. Judging from the county’s record to date, that’s not likely: up until now, only one sale has ever been rescinded, and that was for a high-profile case involving the purchase of sidewalks (4).

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A tax-delinquency auction can be a good place to pick up a bargain, but it comes with a lot of risk. If you’re considering bidding, slow down and make sure you know exactly what you’re bidding on, what winning would mean, and how high you’re willing to go.

Double-check the property’s details: use the parcel map, not just the street address. Confirm the parcel number and consult the lot diagram.

Do a title search to uncover mortgages, liens, or other claims that might become your responsibility if you win the property.

Understand that local laws, including the specifics of sale processes, redemption periods, and lien treatments will vary from state to state and even county to county.

Know your limits: secure your funding beforehand, as auctions usually require payment in full immediately. Set a budget and stick to it, no matter how swept up in a fast-moving auction you might become.

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

CBS News (1); Google Maps (2); Office of the Treasurer & Tax Collector of the City and County of San Francisco (3); Business Insider (4)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.