Sheriff auction houses are properties that have been placed on auction because the bond holders were unable to pay their outstanding home loan and as a result the banks has had to repossess the property to settle the outstanding bond.
By placing the property on auction the bank is hoping to sell the property to at least cover the outstanding bond amount.
More about What Are Sheriff Auctions
While you don't need to any experience to bid at sheriff auctions, it is best to attend a few auctions before hand to get an idea of what you can expect.
HOW THE PROCESS WORKS
Buying a property at a sheriff auction is an easy three step process.
First Step: Research and Register
The first step is to do you research on the property that interests you. Get an idea of its market value and the current condition of the property. You should also review the conditions of sale, which will be provided by the sheriff. Next you'll need to register as a bidder before you are allowed to participate in the auction.
Second Step: Bidding
Bid only when you feel comfortable to do so. During the auction you should make eye contact with the auctioneer and lift your hand or wave when you want to bid. When you no longer wish to bid, indicate this clearly to the auctioneer by shaking your head. You should only bid if you have the money available or have made financial arrangements.
Lastly: Finalize The Purchase
Once the auction has been completed, and your bid accepted by the sheriff you will be asked to sign off on the Conditions of Sale, confirming your purchase of the property.
You will also need to pay:
Deposit: 10% of the purchase price in cash or as a Bank guarantee cheque.
Auctioneer's Commission: Max of R9 975