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Clarify Your Goals and Priorities!
Before you start searching for the right property, the first step is to determine your main objective. This will help you make an easier and more informed choice. Here are some key questions you should ask yourself:
- What will you use the property for? – Primary residence, vacation property, or investment asset?
- What are your main criteria? – Location, property type, size, number of rooms, amenities in the complex.
- How will you finance the purchase? – With personal funds, a mortgage loan, or a combination of both?
- What is your timeline? – When do you want to finalize the deal?
- Where are you willing to compromise? – Price, location, property type, or other factors? Clarifying these questions will give you the necessary clarity before you start selecting properties.
How to Start Searching for a Property? What to Look for and What to Watch Out for?
Searching for the right property is an important process that can be significantly simplified if you know where to look and what to pay attention to. Here are the key steps and tips that will help you avoid mistakes and make an informed decision:
Where to Search for a Property?
- Online listing platforms;
- Social media;
- Local real estate agencies: Agencies have up-to-date listings that may not be available on public websites. Check out ours - www.homeoption.eu ✅
How to Avoid Fake Listings?
- Check if the listing is from a reliable source – Avoid listings without details or those with unrealistically low prices.
- Photos in the listing – Pay attention to whether the photos are real and up-to-date. Fake listings often use generic or low-quality images.
- Contact with the poster – Communicate carefully with the person who posted the listing. If in doubt, request additional information or a viewing.
Advantages of Working with an Experienced Broker: Hiring an experienced real estate broker who knows the local market well will save you a lot of time and effort. The broker will help you:
- Find the best offers according to your needs and budget.
- Avoid fake listings and risky deals.
- Get assistance with negotiations, document verification, and the overall transaction process.
What to Look for During a Viewing?
- Condition of the property – Check the construction, installations, and common areas.
- Documentation – Ensure that the property has proper ownership documents and no encumbrances.
- Fees and maintenance – When purchasing in a gated complex, it's important to know the annual maintenance fee and what it includes.
Contact us for professional advice, assistance, and viewings. We will help you find the perfect property and make the process easy and secure for you!
Real Estate in the Burgas Area as an Investment (1999 - Present)
The history of the real estate market in the Burgas region shows significant growth from the late 90s to today. After Bulgaria joined the EU in 2007, property prices in resort areas such as Sunny Beach, Sveti Vlas, and Pomorie increased significantly. Despite fluctuations related to the global economic crisis in 2008, the market stabilized and is now growing again.
Key Trends:
- 1999-2007 – Price increase of up to 300% in some areas.
- 2008-2012 – Price decline of about 30% due to the economic crisis.
- 2013-2023 – Gradual recovery and steady growth, especially in resort complexes.
- Post-2024 – Increased demand for vacation and investment properties from Bulgarian and foreign buyers.
Currently, properties in the Burgas region remain an attractive investment due to high tourist interest and rental opportunities.
Taxes and Fees!
What taxes and fees are due when buying a property?
When buying a property in Bulgaria, the buyer must consider several types of taxes and fees. These costs depend on whether the property is purchased from an individual, a developer, or a legal entity.
- Local Property Acquisition Tax
- Due for every property purchase and paid to the municipality where the property is located.
- The tax rate varies between 2% and 3% of the sale price or tax valuation of the property – the higher value is taken. (In the Burgas region, it's most often 3%.)
- Notary Fees and Registration Fees
- The buyer pays the notary fee, which depends on the transaction value.
- The registration fee in the Property Register is 0.1% of the property's value.
- VAT for Purchases from Developers or Legal Entities
- If buying from a company (developer or other legal entity) registered for VAT, the transaction may be subject to a 20% VAT charge.
- VAT usually applies to new construction purchases. If buying from an individual or for resale, VAT is not charged.
Who Pays the Taxes and Fees? By law, the buyer pays the local tax, notary fees, and registration fees. Transaction costs can be negotiated between the parties, but the standard practice is for these fees to be covered by the buyer.
Certificate of Occupancy - Act 16!
Act 16 is an official document certifying a building's readiness for use. It ensures that the construction meets all safety and building standards.
Key points to know:
- Act 16 is issued by a government commission and confirms the construction's usability.
- For buildings of categories IV-VI (residential buildings, villas, etc.), a Certificate of Occupancy is issued by the chief architect of the respective municipality.
- This document is not required for notarizing the transaction!
Brief Overview of the Purchase Process:
- Deposit Agreement, Preliminary Contract, Notary Deed, and More
- Once you find a suitable property, it is common practice to pay a deposit (reservation deposit) to secure the sale.
- This is usually done through a deposit agreement/preliminary contract.
- The contract specifies all transaction terms, including:
- Property price;
- Deadlines for finalizing the transaction;
- Rights and obligations of both parties.
Signing the Notary Deed!
- Once terms are agreed upon, the transaction is finalized before a notary. You can attend in person or authorize an agent, lawyer, or other trusted person to represent you.
- The Notary Deed is your ownership document containing all important details.
- A draft of the deed is prepared before the transaction and provided to both parties for approval and data verification.
Payments in Real Estate Transactions in Bulgaria
The payment process in a real estate transaction may include various stages and payment methods. Here are the key points that buyers and sellers should consider:
Deposit and Preliminary Contract
- In most cases, the buyer pays a deposit (usually 10% of the agreed price) upon signing a preliminary contract. This deposit ensures the commitment of both parties to the transaction.
Bank Transfer Payments
- The final payment of the price is usually made via bank transfer. This ensures transaction security and compliance with legal requirements for transactions exceeding 10,000 BGN.
Notary Fees and Taxes
- All fees related to the transfer of ownership are paid on the day of signing the notarial deed. These usually include:
- Notary fee;
- Local property acquisition tax;
- Registration fee in the Property Registry.
Important: Payments must be clearly described in the preliminary contract and confirmed upon signing the notarial deed.
How Long Does a Real Estate Transaction Take?
The purchase process can take from one week to six months or more, depending on:
- Type and condition of the property – Transactions for newly built properties with Act 16 are usually completed faster. For properties under construction or with legal issues, the process may take longer.
- Financing – If the purchase is financed through a bank loan, additional time may be required for property evaluation and bank approval. We can assist you with mortgage financing under preferential conditions.
- Availability of documents – All ownership documents, taxes, and permits must be in order. If any documents are missing, they must be obtained before the transaction.
- Other factors and agreements between parties – Negotiations on furnishing, property vacating, or specific conditions set by the buyer and seller may extend the completion time.
The Role of a Real Estate Broker in Property Acquisition
A real estate broker plays a key role in the buying and selling process by acting as an intermediary between sellers and buyers. Their role is to facilitate the transaction, provide valuable advice, and protect their client's interests. Here are the main functions and benefits of working with a broker:
1. Market Analysis and Consultations
An experienced broker has in-depth knowledge of the local real estate market and can provide up-to-date information on price trends, supply, and demand in a particular area. They can help clients set a realistic budget and understand what properties they can afford within it.
Benefits:
- Provides market value information for properties.
- Assesses investment prospects and potential returns.
- Advises on the best time to buy or sell.
2. Property Search and Selection
A broker assists in finding properties that meet the client’s needs and preferences. They have access to a large database of listings, including those not publicly advertised.
Benefits:
- Saves the client time and effort.
- Presents offers that match the client’s criteria.
- Arranges viewings and coordinates meeting schedules.
3. Property Documentation Check
Before proceeding with a transaction, the broker verifies the legal status of the property. This includes ownership authentication, checking for encumbrances, mortgages, and other legal issues that could hinder a successful transfer of ownership.
Benefits:
- Reduces the risk of problems during property transfer.
- Ensures that the property is free of liabilities and encumbrances.
- Provides security for the client.
4. Assistance in Negotiations
A broker plays a crucial role in negotiations between the buyer and seller. They help their client secure the best possible terms, including price, payment methods, and other essential clauses.
Benefits:
- Offers an objective perspective on the property’s value.
- Helps lower the price through strategic negotiations.
- Negotiates favorable payment and ownership transfer conditions.
5. Preparation of Transaction Documents
The broker assists in drafting and preparing all necessary documents for ownership transfer, including:
- Preliminary purchase contract.
- Notarial deed.
- Seller’s certificates and declarations.
- Tax certificates, etc.
Benefits:
- Ensures accurate and complete documentation.
- Guarantees compliance with all legal requirements.
- Minimizes the risk of future legal disputes.
6. Organizing Notarial Certification of the Transaction
The broker coordinates the process of notarial ownership transfer, working closely with the notary and ensuring the presence of all necessary parties and documents on the day of the transaction.
Benefits:
- Ensures that the transaction is completed within legally established deadlines.
- Provides peace of mind and confidence for the client.
- Facilitates a smooth and hassle-free transaction closing.
7. Post-Transaction Support
Many brokers offer additional services after the transaction, such as:
- Assistance with local tax and fee payments.
- Consulting on property management and rental opportunities.
Benefits:
- Provides peace of mind and confidence for the client after the transaction.
- Offers professional support in case of any issues or questions.
- Helps with integration into the new property.
Broker’s Commission
The broker’s commission usually ranges around 2-3% of the property’s selling price, but it can also be subject to negotiation. In some cases, the seller pays the commission, while in others, the buyer does. It is essential for clients to clarify this in advance to avoid misunderstandings.
Commission Payment Options:
- Fixed amount.
- Percentage of the selling price.
Tips for Choosing a Broker:
- Check the broker’s reputation and experience.
- Clarify all commission and service details in advance.
- Sign a brokerage agreement that clearly outlines the rights and obligations of both parties.
Working with a professional broker significantly facilitates the property acquisition process and reduces risks associated with buying and selling.
Conclusion
Buying a property is a significant step that requires careful planning and awareness. Working with an experienced broker will save you time and effort, helping you find the best property for your needs and goals.
You can trust our extensive experience and knowledge. If you want expert advice from professionals with over 15 years of experience in real estate sales in the region, do not hesitate to contact us using the contact details provided!
Home Option Ltd.
Real Estate AgentHomeOption - 2024
