Buying a property “off-plan” seems like a great opportunity.
Lower price. New construction. Profit potential.
But there is something many buyers underestimate: the real cost of risk.
The Myth of the “Saved Commission”
Many buyers think:
- “I will save 2–3%.”
But the reality is:
- the price is often the same
- the risk is entirely yours
1. The price is rarely lower
In most cases:
- the developer has already included all types of commissions in the price
- the price remains the same
2. You save little but risk a lot
Without professional assistance, you may:
- overpay for the property
- miss a better opportunity
- end up in a problematic project
3. You have no protection
The agent you pay a commission to is the only participant in the process who can be:
- your advisor
- your filter
- your protector
The developer sells.
The agent (if they are good) protects your interests.
The real question is not: “Will I save the commission?”
The real question is:
“Am I making an informed and secure decision involving hundreds of thousands of euros?”
Many buyers focus on saving 2–3% commission.
But they rarely ask themselves:
“How much will it cost me if something goes wrong?”
Let’s look at a real scenario.
Scenario: the developer terminates the contract before Act 16
Imagine you are buying an off-plan property under construction and before Akt16 (permission to use):
- Area: 60 sq.m.
- Property price: €150,000 (€2,500 per sq.m.)
- Paid to the developer at Act 14 (30%): €45,000
- Construction period until Act 16: 2–3 years
But before reaching Act 15 and Act 16, the developer informs you that:
- the project is delayed or stopped
- the developer terminates the contract
- your €45,000 is returned
- and in very rare cases, you may receive compensation for lost benefits (example: 25%, which equals an additional €11,250)
At first glance, it may seem like there is “no loss.”
But the reality is different.
- The real loss: the missed opportunity
If property prices in Sofia grow by 8% – 15% annually, after 3 years the price of such a property would be:
At 8% annual growth: €150,000 becomes approximately €189,000 (€3,150 per sq.m.)
At 15% annual growth: €150,000 becomes approximately €228,000 (€3,802 per sq.m.)
What does this mean for you?
You receive back from the developer:
€45,000 (and possibly an additional €11,250 if there is 25% compensation)
But the same type of property now costs: between €189,000 and €228,000 (€3,150 to €3,802 per sq.m.)
What situation are you in?
- You can no longer buy the same property
- You need to take a larger loan
- Or you must make a serious compromise (location, quality, size)
In other words:
- You are not breaking even. You are at a loss. The purchasing power of your money is lower.
Additional losses that are often overlooked
In addition to rising prices, there are other factors:
- Inflation — the real value of money decreases
- Lost rental income (if the property was an investment)
- Lost time (2–3 years out of the market)
- Worse loan conditions
How much does this actually cost you?
The real “hidden loss” can be:
between €38,000 and €78,000+
And this is within a completely realistic market scenario.
Comparison: saved commission vs. potential risk
Commission:
2–3% → €3,000 – €4,500
Potential loss:
- €39,000 – €78,000 when the developer pays no compensation
- €27,000 – €67,000 when the developer pays 25% compensation
The truth that few people realize:
- The most expensive decision is not paying a commission.
- The most expensive decision is having no protection.
You can use our Calculator:
Calculator - risk in buying off-plan property
Or calculate by your own:
Risk calculation formula
The future value of a property is calculated as:
y=150000(1+r)ty = 150000 (1 + r)^ty=150000(1+r)t
Where:
150000 = initial price
r = annual growth (decimal)
t = years
y = future value
If you are considering buying a property — contact us.
We will help you avoid costly mistakes
Use our Mortgage Simulator: https://videliv.com/bg/-89-5.html