A low price does not mean a good opportunity
One of the most widespread mistakes of auction participants is making a decision based only on the price shown in the listing. A low starting price creates the illusion that the object is already attractive. But a true opportunity exists when the final price — with all additional costs, risks and a realistic renovation reserve — is lower than a property of the same quality on the regular market.
The assessment must be systematic. Not a feeling, not a guess, but a concrete calculation.
First step: market price in the area
Before every auction, carry out a simple study: find 3–5 similar objects sold or recently sold in the same area. Property portals (aruodas.lt, skelbiu.lt, ober-haus.lt) allow you to view both current listings and historical transactions.
Compare floor area, condition, floor, infrastructure and transport connections. Calculate the average price per square metre in that area. This is your reference point — the market price from which you assess whether the auction offers a real discount.
Second step: real costs, not just the auction price
Add all expected costs to the starting auction price:
- Auction commission — 5–10% of the winning price (depending on the organiser);
- Notary and registration fees — typically €500–1,500 depending on the transaction amount;
- Renovation reserve — assess visually or through an approved estimate. For a neglected object, plan 15–30% of the price;
- Utility debts — check in advance, include in the calculation;
- Property valuer — if buying on credit (€200–400).
Adding all this, arrive at the total cost. If it is at least 15–20% below the market price for a comparable object — the opportunity is real. If the difference is smaller — you may be buying risk without a real discount.
Third step: risk inventory
Every object has a list of risks. Write them down concretely:
- Is there a seizure? Will it be automatically lifted after the auction?
- Are there easements or rights of way restricting use?
- Are there tenants in the property? How long could their eviction take?
- Do cadastral data match the physical condition (unlicensed conversions)?
- Are there active court disputes over ownership?
Every risk has a financial expression. A servitude can reduce the object's usefulness; tenants can mean several additional months without income or without the ability to move in. It is important not to panic, but to assess honestly.
Decision: when to bid, and when to wait?
Bid when: the total cost (with all expenses) is at least 15% below market, the risk list is short and clear, and you have financing ready.
Wait or withdraw when: you cannot accurately estimate renovation costs, there are unanswered questions about the legal situation, or the price at auction has risen so that the discount has disappeared.
Experienced buyers withdraw from the majority of auctions. This is not failure — it is discipline. A truly good opportunity does not arise at every auction, but it does arise. And when it comes — preparation pays off.