So you’ve read Part 1 and Part 2. You know how online auctions work. You know how Sheriff Sales work. Now the real question: which one do you actually use?
I’ve been sitting with this question for a while, because I’m in exactly this position — a beginner investor in Philadelphia who wants to buy at auction but needs to figure out where to start.
Here’s my honest breakdown.
The Core Difference
Online auctions (Hubzu, Auction.com, Bid4Assets) and Sheriff Sales are selling similar types of distressed properties — but the process, the risk level, and the buyer experience are completely different.
Think of it this way:
- Online auction = structured, digital, more beginner-friendly, more competition
- Sheriff Sale = raw, faster, less competition, higher risk, higher potential upside
Neither is automatically better. It depends on where you are in your investing journey and how much risk you can absorb.
Side by Side: The Real Comparison
Finding properties
Online auction: Browse Hubzu or Auction.com like any listing site. Filter by location, price, auction date. Easy.
Sheriff Sale: Pull the list from phillysheriff.com or Bid4Assets Philadelphia page. Less polished, but the inventory is there. Philadelphia publishes the list well in advance.
Edge: Online auction — easier to navigate for beginners.
Due diligence
Online auction: You usually get more photos, sometimes a property condition report, occasionally the ability to schedule a drive-by or exterior viewing. Still no interior inspection, but more information than Sheriff Sales typically provide.
Sheriff Sale: Minimal information. Address, creditor, minimum bid — that’s often it. Title research, lien checks, and everything else is entirely on you. Properties have often been vacant for years.
Edge: Online auction — more information available upfront.
Financing
Both require cash or hard money. No mortgage contingencies, no backing out once you win.
Online auction: You typically have 30 days to close after winning. That’s enough time for most hard money lenders to fund.
Sheriff Sale (Philadelphia): 10% due by 5:00 PM the next business day. Full balance within 15 calendar days. No exceptions — miss the deadline and you forfeit your deposit and may be banned. Zillow
Edge: Online auction — the timeline is more manageable for first-timers.
Competition
Online auction: These platforms have millions of registered users. You’re competing with experienced investors nationwide, hedge funds, and institutional buyers who do this full time. The Auto-Bid systems mean you’re often bidding against algorithms, not people.
Sheriff Sale: The buyer pool is much smaller. Most regular people have no idea Philadelphia Sheriff Sales exist, let alone how to participate. You’re competing with local investors, not the entire country.
Edge: Sheriff Sale — less competition means better prices if you do your homework.
Hidden risks
Online auction: Buyer’s premium of 5-10% on top of your winning bid, plus closing costs of 2-5%. Properties sold as-is, no contingencies. What you see is what you get. Philadelphia Magazine
Sheriff Sale: Liens not properly noticed may survive the sale. IRS liens require additional steps. Prior owners may not leave voluntarily. Title issues are more common and more complicated. The legal complexity is real. Amerisave
Edge: Online auction — risks are more predictable and better disclosed.
Price potential
Online auction: Because of the larger buyer pool and competitive bidding, prices tend to get bid up closer to market value. You can still find deals, but the margin for error is smaller.
Sheriff Sale: Because of lower competition and the distressed nature of the properties, prices can be significantly below what you’d find anywhere else. The ceiling on what you can pay is lower — and so is what you actually end up paying, if you’re disciplined.
Edge: Sheriff Sale — better deals available for buyers who are prepared.
So Which One for a Beginner?
Here’s my honest take after researching both:
Start with online auctions if:
- This is your first auction purchase
- You want more time to arrange financing
- You want more information about the property before bidding
- You’re not ready to deal with potential title complications
- You’re okay with a smaller margin in exchange for a smoother process
Consider Sheriff Sales if:
- You’ve already done a deal or two and understand the process
- You’ve attended the free Philadelphia Sheriff’s Office workshop
- You have a real estate attorney who can do a title search
- Your hard money lender can move within 15 days
- You’re comfortable with as-is, no-inspection purchases
- You want access to deals that most investors never find
My Personal Plan
I’m not going to pretend I’m ready to walk into a Sheriff Sale tomorrow. I’m not.
But I’m also not going to ignore the opportunity. Here’s what I’m actually doing:
First — attending one of the free Philadelphia Sheriff’s Office workshops. They run monthly, they’re free, and getting information directly from the people running the auction is too valuable to skip.
Second — practicing on Bid4Assets without bidding. Researching properties, running numbers, doing the title checks, just to build the process muscle. Getting familiar with what the inventory looks like and what prices properties actually close at.
Third — staying active on Hubzu and Auction.com for Philadelphia listings in the meantime. Lower risk, more information, better for learning while I build toward the Sheriff Sale process.
The goal isn’t to rush into an auction just because the prices look exciting. The goal is to be the most prepared person in the room when I do.
The Bottom Line
Both paths lead to the same place — distressed properties at below-market prices that you can flip, rent, or BRRRR. The difference is how much complexity and risk you’re signing up for.
Online auctions are the training wheels. Sheriff Sales are where the real money is — but only for buyers who’ve done the work.
Philadelphia has both, every single month. That’s the advantage of being in this market.
Use the calculator below to run your numbers on any auction property — Sheriff Sale or online — before you ever place a bid.