Auction buying service from Veliko Tarnovo Property Agents.
Procedures to help you find property for sale at auction in Bulgaria
Just as in other European countries, many properties in Bulgaria are now being sold at auction. The sources vary from government auctions to bank repossessions and the process for bidding can be quite daunting for the uninitiated. Our aim is to identify the opportunities that arise for auction and to provide comprehensive, accurate and detailed information on the property and a comprehensive service on auction day.
Who sells property at auction in Veliko Tarnovo?
Banks and lending companies:
Each month many of the Bulgarian banks and other mortgage lenders sell property at auction that have been subject to repossession and foreclosure. Yantra Homes works with all the major banks and lenders in Veliko Tarnovo to receive advance knowledge of these sales.
Veliko Tarnovo Municipal agencies:
The municipality has a long term plan to privatise many of their underutilised assets. Yantra Homes works with the municipal agencies to help dispose of properties that are named in the annual privatisation plan.
The law courts:,
Properties that have been seized by the court in settlement of disputes are often put in the hands of private judges (Bailiff) for disposal at auction. Yantra homes works with many private judges in Veliko Tarnovo
Private sellers sell property at auction, usually when a quick sale is required, Yantra Homes hold property auctions in Veliko Tarnovo.
What are the advantages of buying property at Auction?
The opportunity to buy property at below the market value.
Opportunities often arise to buy unusual and highly sought after properties that are not always available through the usual channels.
You negotiate the purchase price; if your bid is successful, the property is yours.
There is no need to negotiate with the seller.
Apart from normal legal costs, there are no further costs involved
There are no hidden costs.
What is the procedure for buying property at Auction in Bulgaria?
Firstly, you must be eligible to buy property in Bulgaria, including the right to buy land in
Bulgaria (if applicable). See our guide
to Buying Property in Bulgaria for more information.
It is usually possible to view the property prior to the auction. However, this is not usually the case with properties
that have tenants. Yantra Homes will advise you of the viewing situation. When you are considering buying a
property at auction in Bulgaria you need to find out everything possible about the property of your choice. If your bid is successful
in the auction room, the property is yours, a contract is concluded on the sale of the property and it will be too late
to cancel the sale if you come across a problem.
Sometimes the date of the auction has not been set. There is a procedure that must be followed to set the date of the auction, this process can take one or two months. Yantra Homes can explain this in detail and assist with the process as and when it is required. Once the date of the auction is set, it is necessary to register as a bidder, this must be done at least 24 hours before the actual auction date. The procedure requires that you prove your identity with an ID card or passport, and quite a few documents must be filled out, together with the payment of a non-returnable administration fee. (50 - 300 BGN).
Starting Price and bidding steps
There will be a starting price for the property, this is published in advance, and often there are steps that must
be adhered to for subsequent bids. Once you are registered you can make your initial bid, not less than the starting price.
This will remain in a sealed envelope until the start of the auction.
Auction day finance and bidding
You must have all your finances in order. Before bidding, a deposit is required, the amount varies depending upon the auction rules,
but is between 10 - 30% of the starting price. This deposit must be paid into the auctioneers bank account and will be refunded only
if your bid is unsuccessful.
Now begins the exciting part of the process, you must arrive at the auction before the published time and again prove your identity.
At the start of the proceedings all sealed bids will be opened. If you are lucky yours will be the only one, in which case the final
price will be your starting bid. If there is more than one bidder, the auctioneer will ask for a higher bid than the starting price.
If bidding steps were published, you must follow them. If not a hundred Bulgarian Leva will be considered valid.
As is customary, the highest bid will secure the property. In Veliko Tarnovo property auctions, it is rare for a property to have a
reserve price above the starting bid
If your bid is successful - the property is now yours. If not you may either obtain a refund of your deposit or leave it
in place for up to one month, in the event that the first bidder defaults, your bid will then be accepted as the next in line.
There is a specified period within which successful bidders must pay the balance. This varies according to the auction
rules, but is usually 20 working days. Some auctioneers do have schemes whereby you must pay any VAT immediately, followed
by 12 monthly instalments to pay the balance. Yantra Homes will advise you in advance of the payment terms/rules.
Yantra Homes Services for buying property at Auction in Bulgaria
Yantra Homes work on a no win no fee basis. We do not charge any upfront fees. The only fees to be paid in advance are disbursals for the various procedures.
Our service extends to finding you the right auction property;
Conducting viewings and property inspection where appropriate;
Beginning the Auction date procedure, if required;
Filling out all necessary documentation on your behalf;
Visiting the auctions, either with you, or in your place with a power of attorney;
All translation services with regard to the auction;
Completing the process to produce the title deeds.
For our services, we charge 5% of the final property price, subject to a minimum fee of Euro 1,500.00.
Warning: Never consider buying at property auctions in Bulgaria if you have not got the full amount of your bid price at your disposal. Never be tempted to buy, knowing that you have the deposit to hand and thinking you can easily raise the balance later. As in all property purchases, there are penalties if you cannot come up with the balance on completion, usually 20 working days from the date of the auction, but in some instances this can be less.