[size=55:1lid34n0]Sofia echo

Property auctions in Bulgaria double in 2011

The number of property auctions initiated by private enforcement agents in Bulgaria in the first months of 2011 was double the numbers from the same period of the previous year, according to the data from targ.bg and Bulgarian Chamber of Private Enforcement Agents (BCPEA).

In 2010, property tenders came in at 700 to 800 a month on average, but their numbers soared to between 1500 and 1600 in January and February 2011, Mariyan Petkov, private enforcement agent and BCPEA member, said.

By comparison, the number of auctions for enforced sales of property in 2008 stood at between and 40 and 50 a month, targ.bg owner, Georgi Papourin, said.

The increase in property auctions was attributed to the growth of non-performing mortgage loans, as well as to the accumulation of old tenders that found no buyers.

Is it possible for Brits to buy at Property Auctions?

Can't see why not your money is as good as anyone else's. I would think if you went along with an interpreter assuming you already had a company in Bg you could just bid in the same way as anyone else. I would think there maybe some registration process to enable you to bid.

itchyfeet wrote:

Is it possible for Brits to buy at Property Auctions?

Sure, as long as your fixer is better than that of the Bulgarians

I can tell you from a friends experience that you can do this just as Dave has said

coriolanus wrote:

itchyfeet wrote:

Is it possible for Brits to buy at Property Auctions?

Sure, as long as your fixer is better than that of the Bulgarians

Is a nod or wink good enough??

itchyfeet wrote:

Is a nod or wink good enough??

No, but a couple of thousand leva may well be

Anyone with enough funds can buy at an auction so long as you follow the rule of buying property in general

I have spent loads of time searching for all this information about Auctions so I hope it helps.

Bulgarian property auctions are rare. Private owners do not usually sell their homes by this method. However, it is sometimes possible to find property in Bulgaria - typically traditional-style villas in village locations - on the auction website Ebay. Some of the Ebay sellers are UK-based while others appear to be small Bulgarian property companies

Checking the reputation and legitimacy of the seller may be difficult, but you should always be extremely cautious about placing a bid for Bulgarian property if you have not had an independent survey carried out and made local enquiries about its ownership.
Most of the villas being auctioned on Ebay are in need of quite extensive renovation and their remote locations would severely limit their rental and resale potential

Conventional Bulgarian property auctions

Where conventional Bulgarian property auctions are held in Bulgaria, the properties tend to have been repossessed by the state, government bodies or banks and other financial institutions due to non-payment of debt. These auctions are ad hoc and are advertised locally in newspapers.

Property Auctions

Buying property at auction can save you up to a third off the price or more, so it is well worth looking at this form of purchase. Here we address some of the most frequently asked questions regarding property auctions.

Why are properties sold at auction?

Property, whether residential or commercial, is normally sold at auction for various reasons: the property may have been repossessed by the bank and needs to be sold quickly;
it could have strong renovation potential but some legal restrictions upon it and is not offered on real estate agents’ listings;
or it may have remained on the market for too long and is proving difficult to sell.
How do auctions work?

The auction will take place either at an auction room or, in some cases, at the property itself. Bidders (prospective buyers) assemble in the same room at the auction, having decided upon a ceiling price (maximum amount they are prepared to offer), dependant upon the finance they can raise.

At the drop of the auctioneer’ hammer, if yours is the highest bid, you are legally committed to the purchase and will be expected to deposit around 10% to the auctioneer. The vendor, in turn, is committed to the sale. Your solicitor will then need to carry out the legal work required.

The purchase procedure will then continue in the same way as any other property purchase, however, the transaction must be completed within 28 days.
What are the advantages?

Low price: First and foremost, the purchase price is invariably below market value and, provided you chose the right property in a good location and keep to your ceiling price, you will save yourself thousands when buying at auction.

More properties: Many properties in need of renovation are sold through auction, without even making it to an estate agent’s listings, meaning that auctions can often offer a wider selection of properties to choose from.

No delays: Contracts are exchanged as soon as the hammer drops. The vendor and purchaser are then legally obliged to go ahead with the transaction which, in UK law, avoids the disappointment of ‘gazumping’ (the vendor later accepting a higher offer from another buyer).

Valuations will already have been undertaken and a mortgage approved, all translating to speedy completion within a month

There can be no property chain which, in usual transactions, so often causes delay and can even break the deal

What are the disadvantages?

Preparation: This needs to be done prior to attending the auction and can be laborious, while not necessarily leading to a successful bid. If you overlook preparation, you could find yourself with a costly mistake.

Money: Unless you are a cash buyer, you will need to apply for a mortgage and get a bank valuation, meaning a financial outlay for a property you may not be successful in purchasing. Expenditure will also include the cost of a full structural survey and having a legal representative carry out the usual searches to ensure that if you bid successfully, the property will be free of debts and you will gain clear title.

What preparations should I make before attending the auction?

* Get a full structural survey carried out if this is usual in the country in which you are purchasing
* Have the property valued and funding approved for your purchase price, minus the deposit amount
* Have the deposit on your ceiling price ready and available if you are successful at the drop of the hammer
* If you have never attended an auction before, it is a good idea to go to one to ‘get a feel’ for the process before attending yourself to spend vast sums of money. It’s also an opportunity to ask the auctioneer any questions you may have.

Where can I find out about the next property auctions?

Property auctions are advertised in local press, the internet and via estate agents. You may also see “For Sale at Auction” signs outside the properties themselves. Alternatively, you could phone auction houses and ask them when the next auction will take place. Find out what type of properties they normally sell and ask to be put on the mailing list. Auctioneers will usually publish a catalogue of properties available to prospective buyers about one month prior to the auction date.


If you have seen a property that you are interested in, the next step will be to pay a deposit of 10% of the starting price, this is payable by all bidders and will be refunded in full to all losing bidders. You will then have to place your bid which should be at least the starting price stated in the Auction Documentation. As with any other auction, the winning bidder is the one who places the higher bid.
The winning bidder will have to pay his balance within 7 days of the auction;
if he fails to pay he will lose his deposit.
Virtually anything can be purchased by this procedure in Bulgaria.

Buying in Bulgaria

Don'ts of Buying in Bulgaria

Expect the legal system to be the same as it is
in your country, it is not

There is a rigorous system, but expect the process to be different.

Don''t Expect the locals to speak English

Make an effort with a few Bulgarian words since English has only recently been
taught as the second language in schools and in many rural areas, no English
will be spoken.

Don't Sign any documentation unless translated by an
accredited translator

For obvious reasons, have all documentation translated. As with any country, it
is wise to be aware that there are dishonest estate agents/developers out there,
so always ensure you know exactly what you are signing and agreeing to.

Don't Make any rushed decisions to pay any 'deposits'
or direct payments

Some disreputable agents/developers try to impose 'fines' on negotiations if they
do not get a deposit from a potential buyer when visiting. Always investigate
the competition and at least discuss your decision in advance with a friend
before making any payment.

Don't Expect your purchase to make immediate and
massive gains

It is likely that Bulgarian property will go up in price significantly but do
not expect it to happen straight away.


Don't Unwillingly participate in tax evasion

I hope this help anyone who is considering an Auction.

Well done Sallyann this is a great bit of information for anyone wanting to but at auction

Well sallyann what a brilliant piece of editorial you have researched and posted here for us all to read. It will be useful to a lot of Brits and I guess people from other countries contemplating the auction method to buying.

Not only have I got itchyfeet now, but itchypockets with money to get going and have a look around.

Many thanks for all your hard work.

[size=55:2b9rh8sv]dnevnik

How did the idea to do private auctions to sell properties?
- The public tender for Bulgaria

Palpurin George is the founder and owner of the site that published tenders for the sale of property, targ.bg. Portal is an extension of his experience 8 years experience in the real estate sector. He has worked for the "
Address"
, participated in the creation of the concept of Almark, one of the first private companies that organize public auctions real estate. Access to targ.bg is free. Paying to use the main database. For two years the site visitors were over 190 000

The sale of property held by private companies are not known, unlike the UK, for example, where widespread. The first auctions are associated with enforcement, but it has forced nature. At the same time society as hear the word auction, connecting it with something arranged in advance a clear buyer.

The reason for this is due for municipal and government auctions that lack sufficient transparency and publicity, and for those few people understand. So in 2009 the idea for the site targ.bg, to promote the ongoing auctions and develop this business as a culture and awareness for consumers.

We want to show that auctions, where public and with clear criteria, not harm the market and help him. The more people participate in this market, the more you evolve, becoming more active and greater possibility of obtaining a higher price for the property. Our idea is to show that this is a market that might work.

How we gather information about auctions?

- There are various channels for collecting information. When did the site in 2009, much of the information was in the district courts. Shortly after our website has started work that the Chamber of Private Enforcement, where he provides information about public sales of the debtors, but there are published only scheduled auctions of private enforcement.

Likewise, we collect information on tenders of state enforcement, municipalities, ministries, administrators, the National Revenue Agency and other institutions. Our goal is to gather together all the real estate auctions in the country. Thus, entering the site, the one who is interested will receive a maximum amount of information about the available properties.

Does this business future, considering the mentality of the Bulgarians? During the boom in property prices in 2008, the Bulgarian branch of a foreign agency tried to apply this model in our country, but finds that the Bulgarians have not yet up to this type of culture.

In the summer of 2010 the first private auction for the sale of property to a new house near Sofia. On it sat for nine candidates. Originally announced price rose by 20%. Everything went successfully as a textbook. See that there is opportunity for such transactions. Then try one farm to Sofia.

In the days before the auction was called a few interested, but the auction itself does not appear anyone despite the attractive price of 10 euro / sq.m. Total for the whole property price was 130 thousand euros. For the next auction adjusted price of just under 100,000 thousand again no one appeared. Two or three weeks later, according to the owners have entered into negotiations for sale.

Another property sold at auction any parcel in Elin Pelin, which was bought for warehouse and production facility. Another property, which make Dutch type (falling prices) in auction Nadezhda, was unsuccessful because of incorrect pricing parameters set by the owners of the property. A week after it became a deal, but lower than the asking price.

On March 9, made the first public auction sale of 15 properties included in one lot. A mass type property lots were already sold or kaparirani before the auction. First sell the house in Sofia near the National Palace of Culture from 58 m at a price of 56 thousand euros announced in the auction starting price of 52 thousand euros. Kaparirani are property in Bansko from the Russians. Our expectations are 15 Listings in lots 30% of them being sold.

You could say that private auctions so far slow and difficult gaining momentum in society. At the same time, the market shows great potential. Statistics show nearly threefold increase in the number of auctions of private enforcement in the last year compared with last. Targ.bg data show that earned for public sale through private property enforcement totals for nearly 2 billion for the period March 2010 - March 2011 while a year earlier were worth over 876 million . BGN

Ie has grown by over 125%. Of course, the main reason for this crisis and the inability of people to service their loans. In 2008 there was a 40-50 sales a month, now they are 4-5 times more.

How is the initial auction price of the property?

Price is key to the success of the auction. Actually, to be effective, must be challenged market. This challenge is a combination of all the qualities of the property and an attractive starting price. In a traditional sale typically owner announces his property for sale through the usual channels of the desired price. If the market does not meet that price, he starts it off, until he found a buyer. This process could continue within a year in unrealistic expectations.

When the auction is just the opposite - give up a good price to attract interest from buyers in the process of bidding to reach higher than expected amount. In this reason, sellers should put attractive prices to encourage competition in the bidding. In determining the purchase price must be taken into account a combination of many factors such as current activity in the market demand for similar property sold, setting a price level that has a great deal of certainty that at least two candidates will bid for the property .

What is the difference between private auctions and those conducted by private enforcement?

- Judicial enforcement is a necessary mechanism to clear bad loans, which has a disciplining effect. There is forced selling and resulting in a dose negativity. The private auction is a voluntary process and is not associated with coercion. Furthermore, the control situation was 100% in the hands of the seller, while enforcement is in the hands of the bailiff.

It's nice to have more publicity for the auction of private enforcement, to talk about them because the more active is the market in this direction, the more satisfied and will creditors and less damage to the debtors.

Another problem of judicial enforcement is that the purchase of such property shall not be credited as a guarantee to be mere property subject to sale. The reason is the legal framework and relatively complex organization of guarantee of the loan. Within 7 days of the successful tenderer must pay the amount, still owns the property.

There are isolated cases of credit of such transactions, but they are rather the exception. I think the reason banks are not included in this market now is that as volumes it is still small, but the creation of targeted products involves investment.

Are you saying that auctioning buy only people who have cash?

Lack of credit of such transactions substantially limited circle of people who can participate in them. This accordingly reduces the price of the property, because the fewer candidates participate in the bidding, the lower will be price.

Who and what properties bought at auction?

Mainly its smaller properties at prices up to 50-60 thousand euros. Buyers are mainly Bulgarians or investment companies with foreign participation.

If we compare the market in the U.S. or Europe, how people there prefer to sell their property - the traditional way - through real estate agencies, or placing them on the auction?

The sale of property by tendering is a popular European practice. Especially active are the sellers in Britain, where the total market of tenders for property worth over 3.3 billion euros annually.

When bids are achieved prices by around 10% higher than initial. Due to great interest in UK properties are sold lots, as the frequency with which to organize procedures is 12-14 times a year. On one lot for sale are advertised over 500 properties, 85% of which find their buyers.

I am contemplating purchasing through the auction system later in the year and have just visited the targa.bg site and used google translate so that I can understand what I am reading. Targa do not make it easy to see what properties are in fact coming up for auction and any details therein. Does any member know an easy way to see properties that will be auctioned and the details with pictures of the properties.

I'm not totally sure but I think you will need to look on the respective Municipality websites? here is an example [You must be registered and logged in to see this link.] ... 41&
lang=en Its suppose to be in English but it isn't .

Here's another couple so I think its a case of searching in the right place? [You must be registered and logged in to see this link.] ... rmd%3Divns

This one is Sliven [You must be registered and logged in to see this link.]