How much to bid in BOE auctions

Auctions published in the Boletín Oficial del Estado (BOE, Spain's Official State Gazette) are a unique opportunity for investors and private buyers looking to acquire assets at competitive prices. However, finding your way around the world of public auctions can be overwhelming, especially for beginners. At Subastic, we understand this challenge and have put together this detailed guide to help you understand the different types of auction, their award prices and, most importantly, where to find these opportunities.

Where to find BOE auctions

Before diving into the details of each type of auction, it is essential to know where to look for these opportunities. There are two main sources for finding BOE auctions:

The official BOE search engine: The BOE Auction Portal is the official platform where all judicial and administrative auctions are published. Here you will find detailed information on each auction, including descriptions of the assets, valuations and bidding conditions. However, navigating this portal can be complex for users unfamiliar with its interface.
The Subastic search engine: At Subastic, we have developed an intuitive, easy-to-use auction search engine. Our search engine aggregates information from multiple sources, including the BOE, and lets you filter auctions according to your specific preferences. Whether you are looking for property, vehicles or any other type of asset, our search engine will help you find the best opportunities quickly and efficiently.

Using both sources together can maximise your chances of finding the perfect auction for you. While the BOE portal offers the complete official information, our search engine at Subastic gives you an improved user experience and additional tools for analysing opportunities.

Types of auction and award prices

Once you have found the auctions you are interested in, it is crucial to understand the specific rules for each type of auction. Award prices can vary significantly depending on the origin of the auction and the type of asset in question. Below we break down the main types of auction and their characteristics:

1. Auctions in enforcement proceedings (movable property)

Auctions of movable property in enforcement proceedings (procedimiento de apremio) are an attractive option for anyone looking to acquire vehicles, machinery or equipment at competitive prices. In this type of auction, the minimum award price is usually 50% of the valuation.

It is important to bear in mind some particular features:

If the only bids above 50% are for payment in instalments, the enforcing creditor has the option of taking the asset for 50% of the valuation within five days.
If the best bid is below 50%, the creditor may request the award for half the appraised value or for the amount owed to them on all counts, provided that this amount exceeds the best bid.

2. Auctions in enforcement proceedings (real estate)

Real estate auctions follow similar rules, but with some significant differences. The minimum award price in this case is 70% of the valuation, reflecting the more valuable and stable nature of real estate.

Some important considerations:

If the best bid is below 70%, the debtor has the opportunity to present a third party who improves on the offer within 10 days.
The enforcing creditor may request the award for 70% of the value or for the amount owed to them, provided that this is more than 60% of the appraised value.

These rules are designed to protect the interests of both debtor and creditor, while offering attractive opportunities for investors.

3. Mortgage foreclosure auctions

Mortgage foreclosure auctions are perhaps the best known and most frequent in the property market. These auctions arise when an owner is unable to keep up with their mortgage payments. The minimum award price in these cases is 70% of the appraised value.

These auctions offer greater protection for the debtor, especially if the property is their main residence. For example, it is possible to cancel the auction by paying the outstanding instalments plus the corresponding interest up to the time the auction closes.

4. Auctions for debts owed to the Tax Agency (Hacienda)

Tax Agency auctions originate from the enforcement of debts owed to the Agencia Tributaria. In this type of auction, the minimum award price is 50% of the auction reserve value.

A unique feature of these auctions is the presence of an auction panel (Mesa) that decides on the award. If the best offer is below 50%, the panel has the power to decide whether the offer is sufficient or to declare the auction void, always taking the public interest into account.

Social Security auctions are a notable exception in the landscape of public auctions. Unlike most, they are held in person rather than on the BOE Auction Portal. The minimum award price in this case is 60% of the auction reserve value.

Some important particular features:

The required deposit is 25% of the auction reserve value, considerably higher than in other types of auction.
The payment period is shorter, just 5 working days, which requires more agile financial planning on the part of the winning bidder.

6. Insolvency proceedings auctions

Auctions arising from insolvency proceedings (concurso de acreedores) have their own rules, which can vary significantly from case to case. The award price is determined according to the established liquidation plan or, failing that, following the rules of the enforcement procedure.

An important feature of these auctions is that the insolvency judge has broad discretion in designing the liquidation plan. In addition, these auctions are sometimes held through specialist companies, with the aim of maximising the funds raised to pay creditors.

7. Voluntary notarial auctions

Voluntary notarial auctions offer unique flexibility, as the rules are largely set by the owners of the asset. The award price is established according to the conditions set by the owners.

It is important to bear in mind that in these auctions the owner may reserve the right not to accept the highest bid, which adds an element of uncertainty for participants.

8. Auctions for division of jointly owned property

These auctions arise when several owners of an asset cannot agree on its sale (división de cosa común). The award price is determined by agreement between the parties or, failing that, following the rules of the enforcement procedure.

They are common in cases of divorce or inheritance, and the parties involved may propose specific terms and conditions for the auction.

Tips for bidding effectively

Now that you understand the different types of auction and their award prices, it is important to bear in mind some tips for bidding effectively:

Research thoroughly: Before taking part in any auction, take the time to study the auction conditions and the asset in question carefully. Use all the tools at your disposal, including our search engine at Subastic, to gather as much information as possible.
Set a clear budget: Decide how much you are prepared to spend and stick to it. It is easy to get carried away in the heat of the moment during an auction, but staying within your budget is crucial for a successful investment.
Consider the additional costs: Remember that the award price is not the only expense you will have. Take into account taxes, deed costs and any refurbishment or repairs the asset may need.
Make the most of technology: Use tools such as our search engine at Subastic to keep on top of the best opportunities. Set up alerts to receive notifications about auctions that match your search criteria.
Be patient: Don't rush if you don't find the perfect opportunity straight away. Sometimes waiting for the next auction can be the best strategy. The auction market is dynamic and new opportunities are constantly emerging.

In this article you will find the 9 Foolproof Strategies to Master BOE Auctions