Property Auction Calculator South Africa
Calculate the true cost of buying at a sheriff's auction, bank repossession, or voluntary auction — hammer price plus all hidden costs
| Cost Item | Amount | % of Hammer |
|---|---|---|
| Hammer Price | R 900 000 | 100% |
| Auctioneer Commission + VAT | R 103 500 | 11.5% |
| Transfer Duty (SARS) | R 0 | 0.0% |
| Conveyancing Fee (incl. VAT) | R 27 891 | 3.1% |
| Deeds Office Fee | R 1 546 | 0.2% |
| Rates Clearance Certificate | R 5 000 | 0.6% |
| Eviction Costs (estimated) | R 15 000 | 1.7% |
| Repair Costs (estimated) | R 30 000 | 3.3% |
| Bond Registration (Deeds) | R 1 346 | 0.1% |
| Bond Registration (Conveyancing) | R 25 439 | 2.8% |
| TRUE Total Cost | R 1 082 937 | 120.3% |
Understanding SA Property Auction Costs
Buying at a South African property auction looks cheap on paper — but the true cost includes auctioneer commission, transfer duty, conveyancing, potential eviction costs, and repairs on a property sold voetstoots (as-is).
At a hammer price of R 900 000, your total cost is R 1 082 937 — that is 20.3% above the hammer price in additional costs. Compared to a market purchase at R 1 200 000, you are saving R 178 381 on a true cost basis.
Buying Property at Auction in South Africa — True Costs How to use • Formula • Example
How to Use This Calculator
Enter the hammer price (the winning bid at the auction) and select the auction type — this affects the conditions and risks involved. Enter the auctioneer commission (check the specific auction terms: typically 5–10% + VAT), the estimated market value of the property, and estimated costs for eviction (if occupied) and repairs (all auction properties sold voetstoots — as-is).
The calculator shows the true total cost versus the hammer price, and compares the auction purchase to buying the same property on the open market. The Auction vs Market tab shows the break-even discount you need.
True Auction Cost Formula
SA auction types and key differences:
- Sheriff's auction: Conducted under the Magistrate's Court Act and Supreme Court Act. Property sold in execution to satisfy a judgment debt. Voetstoots, no OTP protections, 10% deposit on hammer fall, no warranties or disclosures.
- Bank repossession: The bank sells a repossessed property, often via a nominated auctioneer. May have clearer title and less occupation risk, but still sold as-is.
- Voluntary auction: Owner chooses to sell at auction. More typical OTP-like conditions but with auctioneer commission added.
Worked Example
Siphamandla wins a sheriff's auction in Johannesburg at a hammer price of R900,000. The property's estimated market value is R1,200,000.
Costs to add to hammer price:
Auctioneer commission (10% + VAT): R103,500
Transfer duty on R900,000: 0 (below R1,210,000 threshold)
Conveyancing fee (incl. VAT): ~R31,500
Deeds Office fee: R1,738
Rates clearance: R5,000
Eviction (previous occupants): R15,000
Repairs (roof, plumbing): R30,000
TRUE total cost: R1,086,738
The gross discount from market appears to be 25% (R300,000). But after all costs, the true saving is only R113,262 (9.4%). Siphamandla needed at least a 22% discount at hammer to break even with an open market purchase.
Additionally: he paid R90,000 deposit on the day and must find the R810,000 balance within 30 days — before a bank bond can normally be registered.
Frequently Asked Questions
What does "voetstoots" mean at a South African property auction?
Voetstoots (Afrikaans for "as pushed" or "as-is") means the property is sold in its current condition without any warranties or disclosures. The buyer accepts all defects — visible and latent (hidden). Unlike a standard Offer to Purchase, you cannot claim against the seller or bank for defects discovered after purchase. This is why a thorough inspection before bidding is critical, though often not possible for sheriff's sales. Budget conservatively for repair costs.
Do I get vacant occupation at a South African property auction?
Not necessarily. At a sheriff's auction, you purchase the property subject to any existing occupants. Under the Prevention of Illegal Eviction Act (PIE), you cannot simply remove occupants after purchase — a court order is required, and the court must consider the occupants' circumstances. This process can take 3–12 months and cost R15,000–R50,000 or more in legal fees. Always establish whether the property is occupied before bidding and budget accordingly.
How much deposit is required at a South African property auction?
Typically 10% of the hammer price is payable immediately on the fall of the hammer. This deposit is non-refundable if you cannot complete the purchase. The balance (90%) is usually due within 30 days. For a R1,000,000 hammer price, you need R100,000 cash available on the day of the auction. This timeline makes conventional bond financing challenging — many auction buyers use bridging finance or cash to settle, then refinance afterwards.
Can I get a bond to buy an auction property in South Africa?
It is difficult to get pre-approved bond financing for a specific auction property because you don't know the hammer price in advance, and banks need to inspect and value the property before approving. Most banks will not process a bond fast enough to meet the 30-day payment deadline. Options include: bridging finance (expensive but fast), paying cash and refinancing afterwards, or using an access bond if you have existing facilities. Some banks (like SA Home Loans) are more accommodating for auction financing.
How much discount from market do I need to make a SA auction worthwhile?
Given auctioneer commission (10% + VAT = 11.5%), transfer and conveyancing costs (~3–5% of purchase price), plus eviction and repair contingencies, you typically need a hammer price at least 20–25% below fair market value to achieve a meaningful saving after all costs. SA sheriff's auctions often sell 20–40% below market, but not all properties qualify for immediate bond financing, and occupation risk can significantly reduce actual returns. Properties in poor condition or occupied by tenants with PIE protections require an even larger discount to justify the risk.