Public bank auction property is widely available all over the country, ranging from Sherriff’s auctions to online bank auctions to privately auctioned repossessed properties. The range of properties on auctions is vast to say the least, starting with run-down flats and apartments to massive shopping centres and apartment buildings.
Bank auction properties are regarded by most of their buyers as the smart buyers’ choice, given that great deals can be found if you’re willing to do the homework in looking for them and are willing to wait for the right deal. There are a number of factors to consider if you want to buy a repossessed or other bank auctioned property for the first time.
Firstly you need to know where to find out about what’s on auction, so aside from newspaper listings and adverts check out www.sasheriff.co.za, it’s a subscription site which will set you back R100 per month, but you get access to a full list of all the properties to be sold be sheriff’s right across South Africa. Also check out www.myroof.co.za this is free and gets you a full list of all the properties to be sold by three of the major banks.
Once you’ve found a property that you fancy buying, make sure you consider the price and the deal. Have a look around for relative prices in the area for similar properties. Not the list prices, but the sale prices as it is standard practice for a seller to list their property at a price quite a bit higher than what they expect or hope to sell at. So have a look at www.saptg.co.za or www.sahometraders.co.za to check out prices of similar properties in the same area. Then make sure you check whether there are illegal tenants and take a trip down to the city council to check whether there are any rates and levies outstanding.
This is one of the most important points, as auction properties are sold “voetstoets” and when you buy a property you become responsible for outstanding utility bills, and an extra R100 000 on what you were prepared to pay can negate the benefit of purchasing on auction straight away. Once you’ve done your homework, set yourself a maximum price clearly before going to auction and you should have no problem buying a public bank auction property.