Flats from auction – an opportunity or a trap? Experts explain

Only a dozen or so years ago, the number of real estate was a bailiff auction was an indicator of market and economy condition. During the financial crisis, between 2010 and 2014, the number of biced real estate increased from about 4,000. up to almost 10,000, i.e. by 150 percent Experts of the RynekPierwotny.pl portal note that today the situation is different, which explains the improvement of the material situation of Poles. Despite this, buying a flat from bailiff auction, also online, can still be an interesting option.

Apartment with auction – KRK statistics

Experts of the RynekPierwotny.pl portal point to the data of the National Bailiff Council (KRK) – statistics show that the number of bailiffs of real estate decreases – from over 198 thousand. In 2013 to around 126 thousand in 2024, i.e. by 36 percent This trend can be divided into four phases:

• 2013–2017: gradual decrease by about 15,000 annually,

• 2018: A small increase to 146.7 thousand,

• 2019–2022: A stronger decrease with record low levels of 116.3 thousand in 2022,

• 2023–2024: Stabilization around 126 thousand

The inheritance results, among others from the improvement of the financial situation of debtors and better debt collection without the need for real estate enforcement.

At present, such announcements can be added 670 for apartments and 530 houses, i.e. within the average boundaries of recent years.

Risk of buying real estate from a bailiff

However, as the expert notes, there are three main risk of buying real estate from the bailiff:

– The first is to buy an apartment or house with a tenant. If the current owner does not want to move out after the balance of real estate, it will be necessary to conduct eviction proceedings in a normal mode, with the obligation to provide the tenant with a replacement or temporary room. It can be a time -consuming procedure – says Jarosław Jędrzyński, expert on the RynekPierwotny.pl portal.

The second risk is the right of the current owner to challenge the court’s decision to assign property:

– The new owner, after paying the entire auctioned price of the property, does not have the right to ownership until the court considered the complaints of the former owner. It may take months or even years. The third issue is the risk of buying real estate without the possibility of its previous visit, because the owner did not provide the premises – explains the expert.

As he notes, it is difficult to protect itself against the first two cases, because the very rarely auctioned apartment remains free and already abandoned by the current owners.

– As for the third case, it should be assumed that the apartment is often devastated and requires major renovation, which must be taken into account in costs – he states.

Apartment with auction – up to half cheaper?

The main reason for choosing a bailiff auction is a chance to buy below market value – often even one -third cheaper, and sometimes by half. The question is how realistic such saving is.

– The starting price (call) at bailiff auctions, i.e. the lowest price for which the property can be purchased, is 3/4 at the first auction and as much as 2/3 at the second auction of the so -called Estimation prices, which should quite accurately reflect the market value of the property in question. Does it always reflect? – It’s hard to say – unfortunately there is no guarantee for this. The bailiff machine works – at least theoretically – apart from its own interest, primarily in the interest of the indebted, so the bailiff is required to get the highest price and strives for it. On the other hand, it is possible to determine the estimation price at the level enabling the purchase of a bailiff at half a market price – notes Jarosław Jędrzyński.

As indicated by the experts of the RynekPierwotny.pl portal, it is best to approach the estimation price as maybe more or less inflated.

– There are also cases of estimating the price of real estate by an appraiser who did not watch the property because he was not allowed inside by the owner. So if at the first auction from the price of calling several auctioners conquers the price to a level of a few percent below the price of the estimation, then in the extreme case the purchase of an apartment through auction may be buying above the market price – says the expert.

It indicates that the actual occasions and relative certainty that we do not overpay, when we buy at the second auction at the price of calling or slightly above, i.e. at the absence of competitive aules, or at a short and little conquering price of calling.

– However, it is more difficult for such situations, the more attractive the property is. However, it is always necessary to determine before the auction, above which we consider further participation in it unprofitable, and thus non -free. By hunting for an opportunity, you can easily fall into the trap of an inflated price or buy a flat that is a source of many problems. This should always be remembered at the stage of bringing a compulsory 10 % bond-he emphasizes.

Apartment with auction without leaving home

Not only the real estate enforcement rate is increasing. Experts from the RynekPierwotny.pl portal notice a similar increase in the case of electronic auctions. The National Bailiff Council launched a real estate e-library system on September 1, 2021 at www.elicytacja.komornik.pl, in accordance with the amendment to the Code of Civil Procedure of 2020, which introduced the obligation to conduct online auction.

In 2022, the number of electronic auctions amounted to 528 cases, a year later 1172, to reach the level of 1763 in 2024. Thus, last year, the participation of electronic auctions exceeded a quarter of the total. Progress seems quite impressive. Will the method contribute in the future to a clear increase in Poles’ interest in real estate from the bailiff?

– For now, this option of acquiring real estate, whether in a traditional or electronic form, is still dedicated to people well -oriented in the current realities of the real estate market, which can distinguish between a real opportunity from this apparent. Today, there are plenty of favorable prices for the sale of apartments or houses on both the secondary and primary market, for which bailiff auctions will be only certain for quite a long time, after all, rather a marginal supplement – sums up Jędrzyński.