From autumn, banks are expected to promote new home buying programs through auctions in an attempt to increase demand for home loans, as well as facilitate the transfer of property through an electronic auction platform. The new housing programs will cover real estate auctioned by a bank other than the bank that issued the loan, which will expand the range of objects to be financed, as well as potential customers for buying a home.

Until now, banks have financed home purchases with properties they already own, or properties they themselves have put up for auction in a hurry. Conversely, granting a loan for property auctioned by other banks does not exist as an option, because through an electronic auction, the bank can neither see the property nor confirm its value, which is carried out by an independent appraiser appointed by the court. Thus, mortgage financing is limited to real estate, which can only be assessed by the bank itself.

This should change with the promotion of special products reportedly planned by the National Bank and the Eurobank, which are expected to hit the market in September. Providing loans for the purchase of property through an electronic auction platform will help in the sale of property through auctions, which have shown high interest in recent months, but come with conditions and restrictions that make the whole process a deterrent for the average household. The main problem is that the interested person cannot visit the auctioned property and see if it suits their needs, and therefore it is difficult for someone to choose an auction to buy a house, especially if the property is intended for the owner. an occupation.

They will relate to real estate put up for auction by another bank, and not by the bank that issued the loan.

The main condition, which also acts as a deterrent to buying a home at auction, is the obligation of the interested party to pay in the form of a guarantee 30% of the value of the property put up for auction based on the offer price. The amount is refunded if the interested party does not bid or is part of the price if they bid, and withheld if the interested party bids but does not complete the process. Market sources note that the amount of the guarantee is high compared to other markets such as Spain, where the corresponding commitment is 5%, which adds another challenge to the sale of properties through auction. It should be noted that the exception is the National Bank, which requires the payment of a deposit in the amount of 10% of the value of the property, for which the bank is urgent.

Banks and especially management companies, which are the main organizers of real estate auctions, either as trustees or bank trustees, have recently noticed an increased interest in selling, mainly commercial, real estate through auctions. According to the electronic auction platform, in the first half of 2022, 17,620 real estate auctions were held, of which 4,190 were successful, i. banks or management companies. According to Intrum, if in the second half of 2021 the participation of third parties in the ongoing trading did not exceed 6%, then in the first quarter of 2022 it approached 10%, and in the second quarter to 13.5%, while, according to data doValue, of the 27% of successful auctions, the majority were awarded to third parties.

The increase in demand from individuals is the result of increased efforts by management companies to expand partnerships with brokers across the country to promote properties that, in the absence of new buildings, are now eyeing the auction market with interest. . The determining factor is also the economic situation, which favors investment in real estate, unlike other forms of investment. The surge in inflation is working in favor of fixed income investments, and given that real estate prices are still at a reasonable level, at least in most of the country, they are attracting private interest.