Sheriff Auctions:
Sheriff auctions are public sales mandated by a court, typically because a creditor or lender has taken legal action to recover unpaid debt. These sales are conducted by a sheriff of the court, and the property goes to the highest bidder. Sheriff auctions are usually advertised in local newspapers and are open to the public.
One key advantage of sheriff auctions is the potential to purchase properties at a lower cost. This is partly because the properties are often difficult to view internally and are primarily advertised in local newspapers, the government gazette, and on specific websites like SheriffHQ.co.za.
Repossessed Properties:
Repossessed properties, on the other hand, are those that banks or other financial institutions have acquired at sheriff auctions. The banks then attempt to resell these properties at a higher price than what they paid at the auction.
These properties are generally sold through standard channels, such as real estate agents or property websites, making it easier to arrange internal viewings. As a result, repossessed properties tend to have higher prices compared to those sold directly at sheriff auctions.
Conclusion:
For those seeking the best possible bargains, sheriff auctions are the better option. They offer the chance to buy properties at lower prices, despite the challenges in viewing them internally. For more detailed information on why sheriff auctions can be more advantageous than repossessed properties, see the in-depth article on this topic.