What happens if no one bids?

The property becomes bank- or county-owned and may be relisted later.

Can I finance a property at a sheriff sale?

Typically no. You’ll need cash or certified funds since there’s little time for loan approval.

How long does the process take?

Once payment is made, you can receive the deed in as little as 30 days, but it varies by county.

Are sheriff sales public?

Yes. Most are open to the public, though some require pre-registration.

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What Is a Sheriff Sale and Should You Buy Property There?

August 5, 2025

5 min Read

Written by Aja McClanahan

Edited by Joe Evans

A crowd of bidders at Sheriff Sale auction.

RichLegg / Getty Images

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If you’re hunting for a property deal, you’ve probably asked yourself: What is a sheriff sale — and is it actually worth it?

A sheriff sale is a type of public auction where homes are sold to recover unpaid debts, such as mortgages or property taxes. These sales are often court-ordered and handled by a local sheriff’s department. While the chance to buy real estate at a discount is appealing, the process comes with risks that every buyer should understand.

Here’s what you need to know about sheriff sales, how they work and whether you should consider buying a home this way.

What Is a Sheriff Sale?

Let’s start with a quick sheriff sale definition: A sheriff sale is a public property auction that takes place after a court rules in favor of a lender, creditor or municipality to recover unpaid debt.

It typically involves foreclosed homes, unpaid tax properties, or homes seized due to legal judgments.

Unlike traditional home sales, sheriff sales don’t involve negotiations or home inspections. The properties are sold as-is, often for cash, and to the highest bidder.

How a Sheriff Sale Works

Here’s a step-by-step breakdown of what to expect:

Court Order: The homeowner defaults on their loan, taxes or legal obligations.
Public Notice: The sheriff’s office announces the sale, usually online or in local papers.
Auction Day: The property is auctioned off to the highest qualified bidder.
Payment Deadline: Winning bidders must pay a deposit or full balance — typically in cash — within a short timeframe.
Deed Transfer: Once payment is made, the sheriff’s office finalizes the transfer of ownership.

Unlike traditional sales, most sheriff sale properties do not allow interior inspections before purchase. On top of that, the median price of a foreclosure resale was 36% below the average home price — a telling indicator of how sheriff sales can offer serious savings.

Common Reasons for a Sheriff Sale

Homes typically end up in sheriff sales due to:

Foreclosure – Missed mortgage payments trigger legal action. Even as the market cools in some areas, sheriff sales remain relevant — more than 18,700 properties were foreclosed on in the first half of 2024 alone.
Tax Liens – Unpaid property taxes prompt government seizure and sale.
Court Judgments – Lawsuits may result in a forced property sale to cover damages.

The Process of Buying Property at a Sheriff Sale

Buying through a sheriff’s sale can be more complicated than buying on Zillow. Here’s what to expect:

Do Your Research: Visit the property (from the outside) and check county or court websites for auction details.
Investigate Title History: Look for liens, unpaid taxes or second mortgages — many will transfer to you.
Register & Verify Funds: You may need to show certified funds or proof of cash.
Bid Smart: Stick to a budget. Winning bids are legally binding.
Finalize Quickly: You may have only 10 to 30 days to pay the full amount.

Risks of Buying at a Sheriff Sale

Sheriff sales can offer value, but not without trade-offs:

Sold As-Is: No walkthroughs or inspections are typically allowed.
Liens or Legal Issues: Some homes come with baggage, like unpaid taxes or HOA dues.
Cash Upfront: You often can’t use a traditional mortgage.
Repair Surprises: You may inherit damage you didn’t plan for.

According to the City of Philadelphia, almost 50% of sheriff sale listings fail to sell and many successful purchases come with unresolved liens or legal complications. It’s fair to say buyer beware comes baked in.

Benefits of Buying at a Sheriff Sale

Despite the risks, there are real upsides:

Below-Market Prices: Properties often sell for 30% to 50% less than market value. Foreclosed homes sell for about 28% less than comparable non-distressed properties in many markets.
No Agent Fees: Buy directly from the court, no middlemen required.
Investment Opportunity: Flippers and landlords often find great deals.

How to Prepare for a Sheriff Sale

Make sure you:

Set a Firm Budget: Don’t let emotions push you past your max bid.
Have Certified Funds Ready: Most sales require immediate or same-day deposits.
Review Legal Terms: Each county or state has its own rules.
Consider Hiring a Lawyer: Especially for title or eviction issues.

Sheriff Sale vs. Foreclosure Auction

Factor	Sheriff Sale	Foreclosure Auction
Ordered By	Local court or sheriff’s office	Bank or mortgage lender
Trigger Event	Legal judgment or unpaid taxes	Mortgage default
Property Condition	Sold as-is	Sold as-is
Payment Terms	Certified funds, quick timeline	Sometimes allows mortgage financing
Best For	Experienced buyers, cash investors	Investors or buyers with capital

Final Take to GO: Should You Buy Property at a Sheriff Sale?

So, what is a sheriff sale — and should you consider it? It’s a unique way to snag property below market value, especially if you’re an investor or experienced homebuyer with cash on hand. But sheriff sales aren’t beginner-friendly, and they come with risks like legal complications and unknown property conditions.

If you’re ready to do your research, have funding in place, and understand the legal landscape, a sheriff sale could be a smart path to real estate ownership.

Want more help deciding? Explore GoBankingRates’ real estate investing guides and tips on buying foreclosures for expert-backed strategies to grow your portfolio.

FAQ

Here are the answers to some of the most frequently asked questions about buying foreclosed homes and how exactly it works:

What happens if no one bids?
- The property becomes bank- or county-owned and may be relisted later.
Can I finance a property at a sheriff sale?
- Typically no. You’ll need cash or certified funds since there’s little time for loan approval.
How long does the process take?
- Once payment is made, you can receive the deed in as little as 30 days, but it varies by county.
Are sheriff sales public?
- Yes. Most are open to the public, though some require pre-registration.

Data is accurate as of August 5, 2025, and is subject to change.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.