Flats from 20,000 euros and at the click of a button, without leaving home. It is the great claim of the properties that are auctioned due to problems with the administrations. It is not something new, but the Tax Agency has just provided a portal with theirs and they have focused their eyes again. Do they count? The fine print requires extreme caution for those who seek to enter into these processes.
In exchange for a possible better price you have to give up basic things. First, not seeing the house in situ and having to be guided by photos, in some cases the cadastre map. Then you have to trust the description that is presented, in which its state is not described or if it requires major reforms. "As an advantage, you do not have to pay intermediary fees, but that means that there is no professional who is marketing the property and can report the relevant data," compares Arantxa Goenaga, an expert lawyer in real estate law at Círculo Legal Barcelona.
It should also be borne in mind that the price is not always attractive. "It is valued without as much transparency as in a judicial process," says Antonio Gómez, founding partner of the Gómez y Gallardo law firm. This can inflate prices because it is calculated according to its value and not its condition, which in turn causes situations such as “in a real estate portal the apartment next door may be cheaper”. Thus, "if you are going to get closer to the market value, it does not compensate," he warns.
Unwanted surprises can be added to the purchase price. "In Treasury auctions, seeing the charges that they entail is essential," warns Gómez. For example, if you are up to date with the payment of taxes (such as the IBI), that there are no non-payments to the community or problems with the City Council due to the garbage fee or any work that has been done illegally and has a open file. You may even have to face what is pending on a mortgage.
For example, this week in the Tax Agency there was a house in Valladolid for 15,000 euros, but with loads of up to 36,000, or one in Vila-real (Castellón) for 21,000 euros and, as a gift, loads of 40,500, in both cases. twice the appraisal price.
To try not to go blindly you have to be inventive. The professionals know them all and they take a nose at him, explain the sources consulted. When they are interested in a property, they see it from the outside, through a window, they talk to the neighbors... Even if it is occupied, they already negotiate under what conditions people would leave. To prevent what looks like a bargain from actually being a hole.
Also in the payment of taxes some troubles arise. Since the entry into force of the reference value on January 1, “the property transfer tax, the principal, is not calculated with the price paid at the auction, but by the reference value. It may happen that you pay 250,000 euros and pay taxes for 500,000 ”, explains Gómez.
The final firework is if the house is occupied. “Sometimes the possessory situation that is recorded is not correct. It may not come out that there is a tenant or that there is an occupation ”, explains Goenaga. The latter would either force them to negotiate some type of contract in the future or have to offer compensation for them to leave the house, such as paying for the entry of another house and the move.
People with good savings and who are not looking for a regular home are in a better position, because it is recommended to have the money ready for the purchase.
On the one hand, because in order to bid you have to make a deposit, which is 5% in those made by the Tax Agency. On other platforms, such as specialized brokers, it is not necessary. On the other, because requesting financing in these processes is not so easy. The bank can put up obstacles since to grant a mortgage the apartment must be visited to make an appraisal, but in auctions there is no prior possibility in most cases.
And keep in mind that deadlines are tight. Once the bid has been awarded, there is a limited time to complete the payment. In the case of the Tax Agency it is 15 days.
With the new search engine and the possibility of alerts, the aim is to "democratize the process, to reach more people", say sources from the Tax Agency. In addition to homes, garages, storage rooms, premises, warehouses, plots and farms are included. Thinking that everything is cheap is a mistake. “Between 2011 and 2014 they were. Today it has become popular and many people bid as if it were bingo”, Gómez details.
Apart from the official portals, there are also specialized online real estate auction entities. As a differential factor, they offer that the starting price is, in some cases, up to half of the appraisal, that there is not always a mandatory deposit and that the terms can be longer. In addition, they try to have more information, photos and publicity. “The objective is to be an alternative proposal to the BOE, which is more reactive than proactive. In many cases it is worth it”, says Bárbara de Ron, head of business development at Oportunalia, which specializes in foreclosure assets. In any case, she recalls that "it is not a typical sale, but with great opportunities."
Reviewing the advantages and disadvantages, "it is better to seek advice from a professional who verifies all the extremes," Goenaga believes. “Those who are involved in the sector make little mistakes. Those who are bidding with the computer in front of them, a lot”, concludes Gómez.
