How to buy a flat below the market price?
If you want to buy a property at a lower price than the market one, you should be interested in auctions and tenders. In the age of the Internet, it is not difficult to reach them. However, the topic needs to be prepared accordingly.
Residential tenders
By way of tenders, real estate is put up for sale by various institutions. It may be the Municipal Office, the State Treasury or a housing cooperative. Such an apartment usually requires a thorough renovation. The property is valued by an expert before being put up for sale. The tender may be oral or written. In the first case, the purchaser is the person offering the highest price. In a written tender, in addition to the offered price, the planned method of real estate development may also play an important role. A failed tender is repeated and the price of the property reduced. If once again no winner is selected, further tenders or divestments may take place through negotiations.
Residential bailiffs
The bidding procedure is more complicated than the bidding procedure. It can be applied for by the creditor and the value of the property is determined by an expert. The first auction starts at 3/4 of the value of the apartment. The second one reduces the price to 2/3 of the value. The start position is monitored by a judge. After winning the auction and paying the amount due, the bidder issues a property award decision. If the two auctions do not win, the next one may take place only after six months.
Where can I find information on tenders and auctions?
Each tendering authority shall publish a notice of invitation to tender in advance. Most often this information is published in the local press. If the tender is organised by a municipality, information can be found in the Public Information Bulletin. Each bailiff, when making an auction, is obliged to inform about it two weeks in advance. He may place the auction notice on the board in a court and in a competent commune office. He also reports this in the local press. Current housing tenders and auctions from all over the country can be found on the website. Using this database is much easier than tracking local information.
What do I need to know before I can bid?
Make sure that you are not an excluded person before taking part in any tender procedure. You should also inspect the property within the set time. It is also worth checking its land and mortgage register. For the tender we need a set of documents, which we submit according to the indication in the advertisement. The deposit must be paid within the prescribed period. This is usually 10% of the asking price of the property. This money will be returned to us if we do not win the tender. If we win the contract, they will be charged to the cost of acquisition of the property.
Before we proceed to the bailiff auction
At the latest on the day preceding the auction, a deposit must be paid, the date on which the funds are credited to the bailiff’s bank account being taken into account being taken into account. The manner and date of payment shall be specified in the announcement. The guarantee, which is a deposit, is 1/10 of the value of the property. It is very important to know the legal status of the property carefully and check whether it has not established e.g. easements. Once we have won a bid, we cannot forfeit our purchase without losing the deposit.
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How to buy a flat below the market price
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