The current Spanish economic crisis has had its positive effects in the market looking for and promoting other ways to sell properties. For instance, we’ve seen the emergence of property auctions offering attractive starting prices. One good example of these is the round of acquisitions we’ve recently seen in Madrid, which saw starting prices from € 21, 000 for Madrid flats, to be auctioned by an auction firm. According to experts, the final price in a property auction in Spain could be between 30% and 40% higher than the starting price.
The auction, took place in a Hotel, which properties in central Madrid, Boadilla de Monte, Alcorcon, Fuenlabrada, Leganes, Valdemoro, and others. The organization received over a thousand petitions for information, motivated principally by the appeal of ‘the low sale prices being offered.’
In total, the auction featured 60 homes, 59 flats and one detached house, for an average price at auction of 60,000 Euros. The typical home being auctioned is 70-80m square, with three rooms and a bathroom, and an average age of 30-40 years. The properties are owned by investment groups and financial organizations. So… it is very likely that most of them were repossessions.
Property auctions in Spain can deliver your bargain but it is could be difficult to succeed if you are a home buyer. The bureaucracy and costs involved (administration, legal fees, bidding time etc), does not guarantee that you will have attractive options (or just to buy a property) even when you bid. You may end up with disappointment and losses, but it may be worthy to try.