There are auction houses in South Africa for when you want to purchase a property. But you would prefer one of the bank repo properties as they are more affordable. Homes are repossessed when the deal is foreclosed. Normally due to non payment by the owner. Then, the bank, Nedbank, ABSA, Standard Bank or another financial institute may take the property back. And auction it off to make back the money they lent the owner of the house.
Read More: Buy Repossessed Houses for Sale in SA
You do get private auctions as well. However, it is mainly the banks like ABSA, Nedbank and Standard Bank that have auction houses in South Africa. And you can get all the details from your nearest branches.
Most bank repo properties sell for a reasonable price. Therefore, you can still buy many specials. Purchasing homes that have been repossessed is an easy procedure. Especially if you go to an auction where they specifically deal with such issues.
You will pay a fortune for a decent property in a good area. So rather look for the deals where you can save some money but still get the property you were hoping for.
You can also find out about private auctions by looking in newspapers. Because events will be advertised if there is anything happening in your area. Even when you aren’t looking to purchase just yet. Visit a few auctions so you can get an idea of how the procedure works.
South African Auction Houses
South African auction houses are a must see if you want to buy a house or additional property at lower prices. Auctions are well known for house repossessions. Which is great news if you want a dream home to invest in.
South African banks such as Absa and Nedbank offer property at auctions. Because it allows them to recover the money that the defaulting loaners have borrowed from them.
As the bank is trying to recover the money from the homeowners, these properties are for sale at auctions at lower prices.
South African auction houses are growing in numbers. Bank (repo) properties are previous home loan agreements. This is a result of the borrower repeatedly defaulting on the instalments.
Before a house is repossessed, the borrower receives legal notices. And should they not have a solution to find the money, the house will be foreclosed and sold at auction.
If a bank such as Standard Bank do not receive a high enough bid for the property at auction in order to achieve the bank’s reserve price, the property is brought into possession by the bank.
South Africa Bank Repossessions
Nedbank, Absa, and Standard Bank have numerous bank repo properties on offer. And Absa hold one of the major draw cards to purchasing property through one of these auctions. That is that you will be exempt from paying the transfer duties of the house. Which is the case when buying any other home.
In addition, these banks provide home loans for people purchasing repossessed houses at auction. One word of warning though, these houses may or may not be in the best of conditions. And the banks are not liable for any repairs. Therefore, it is always important to visit the homes before purchasing South African auction houses.