The mistake: evaluating only the auction price
Many buyers compare the auction listing price with the market price and conclude whether it is a good deal. But the true cost of a transaction involves many more elements — and all of them need to be calculated before the auction, not after.
One-time fees at the time of purchase
These fees are paid once at the time of purchase:
- Guarantee deposit — 10% of the starting price, paid when registering. If you win and pay — it is counted toward the purchase price. If you lose — fully refunded.
- Auction commission — typically 5–10% of the winning price, depending on the organiser (Turto bankas, notary auctions, e-aukcionai.lt). In some cases the commission is already included in the price.
- Independent property valuation fee — €200–400, required when financing with a bank loan.
- Notary fees — sale-purchase agreement + mortgage contract: €500–1,500 depending on the transaction amount.
- Mortgage registration at the Register Centre — approximately €57 state fee.
- Bank administration fee — 0.4% of the loan amount (min. approx. €180–200).
Loan costs over the full term
These are costs you pay regularly throughout the loan period:
- Interest — variable or fixed. In 2024–2025 the effective annual rate (APR) is approximately 4–6%.
- Property insurance — a mandatory bank requirement: 0.1–0.5% of the property value per year.
- Life insurance — often recommended or required; the cost depends on age and loan amount.
A concrete calculation example: €80,000 property, 20% down payment
Auction purchase price: €80,000. Down payment (20%): €16,000. Loan: €64,000.
One-time costs:
- Auction commission (7%): €5,600
- Property valuation: €300
- Notary (contract + mortgage): €800
- Mortgage registration: €57
- Bank administration (0.4%): €256
Total one-time costs: ~€7,013. Together with the down payment, you need approximately €23,000 out of pocket.
Over 25 years at 5% interest, the monthly payment is approximately €374. Total interest: ~€48,000. Property insurance over 25 years: ~€3,000–10,000.
Total transaction cost over 25 years: ~€138,000–145,000 instead of the nominal €80,000.