Buying a house at auction: What obstacles do you have to overcome when you go out on a “bargain hunt”

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foreclosed property

If the procedure for buying a foreclosed property seems complicated to you, you can call on the help of a consultant specializing in the field.

The main advantage of participating in an auction (real estate) is the ability to make a purchase at a price (sometimes much) below market level. This is why this segment is becoming more attractive to potential home buyers. “Lately, against the background of the difficult economic climate, there has been an increasing interest in the purchase of foreclosed buildings. The reason for such an interest is a very simple one: the purchase price of such a property, less accessible in other conditions, but very advantageous in this case “, says Adrian Lisaniuc, the representative of the foreclosure department of Regatta Real Estate.

Although it sounds good, concluding such a transaction is not exactly an easy operation; In order to get the great price you want, you have to go through some “obstacles”:

1. Poor popularization of such offers:

According to Adrian Lisaniuc, foreclosed property ads are harder to find, as they are not as popular as regular sales offers. To identify the right offer, you should consult a multitude of sources, such as profile sites, bank websites, ANAF (National Agency for Fiscal Administration) website or bailiffs’ offices. However, you can also turn to specialized consultancy in the field. “Noticing this opportunity that could help people buy a desirable property at a great price for them, we created within the Regatta company the foreclosed real estate department, a department through which we meet our customers, both by identifying the best price offers in this market segment.

2. Complicated procedure:

Another factor that can discourage a potential buyer of foreclosed properties is the bureaucracy of the procurement procedure. “Although at first glance the procedure may seem complicated for some, in reality, it does not require more effort than the long and difficult search for a property under normal conditions, through numerous views, trips or meetings with various owners and realtors. Moreover, in this case, the existence of clear offers, «a priori», and their selection by specialists in the field, considerably facilitates the procedure. Once the interest for a certain property is established, the rest of the process is, practically, only a legal procedure that must be followed in accordance with the usual rules “, explains Andrei Lisaniuc.

3. You cannot see the home before purchase:

Due to the reluctance of the owners, foreclosed buildings cannot, as a rule, be viewed, and, for the same reason, such offers are rarely illustrated; thus, the conclusion of a transaction must be made practically “invisible”. Although there is a risk that such homes will be vandalized, this happens quite rarely. Even so, in the case of apartments, for example, any damage can be remedied with the help of renovation work that most potential buyers have planned anyway.

4. You may encounter difficulties in the process of evacuating the former owner:

Once the transaction is completed and the title to the property is obtained, you have the right to take possession of it. However, there is a possibility of a conflict with the former owner, who may refuse to leave the house. Ideally, you should reach an amicable settlement with him, even in exchange for a sum of money, in order to avoid solving the problems in court.

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