How is the estimated value determined in foreclosure sales?

One of the most debated issues in enforcement sales the estimated value. This is because the economic framework within which the property will be valued at auction, the extent to which the creditor will be satisfied, whether the debtor's property will be sold at a price close to its true value, and the bidding strategies of those participating in the auction are largely shaped by this value. The transition to an electronic sales system has not diminished its importance. On the contrary, with auctions the Electronic Sales Portal integrated with UYAP ( National Judicial Network), the estimated value has become more visible on the announcement screens; consequently, discussions regarding valuation have taken on a more technical aspect. The Ministry of Justice's Enforcement Affairs Directorate has announced that the electronic sales regime is regulated by a special regulation and is implemented nationwide.

In short, the estimated value is the estimated sale price of the property subject to sale in an enforcement file, determined after the valuation process . This value is not the final sale price in the free market sense; however, it is one of the fundamental pieces of data that establish the legal framework of the auction. The electronic sales regulation also mandates the display of the estimated value in movable and immovable property advertisements. Furthermore, the same regulation explicitly states that bids on the portal must exceed fifty percent of the estimated value of the property offered for sale , as well as other thresholds specified in the law. This reveals that the estimated value is not only informative but also carries a normative function that influences the establishment of the auction.

What is the estimated value?

The estimated value is the approximate price determined as a result of the appraisal of the property for sale and shown in the sales advertisement. The electronic sales regulations the estimated value must be clearly stated in the advertisement examples. In this respect, the estimated value is the starting economic reference point of the auction; however, it does not guarantee that the property will be sold at this price. The final auction price may be higher or, in some cases, different within legal thresholds.

Therefore, the estimated value should not be confused with the "definitive market value." In enforcement law, its purpose is to create a legal and financial framework for the sale of the property. This value is particularly relevant to the bidding strategy of third parties participating in the auction, the preservation of the property's value for the debtor, and the likelihood of satisfaction for the creditor. The requirement for the estimated value to be included as an announcement element in the regulation is a consequence of this.

How is the estimated value determined?

The estimated value is determined by the appraisal conducted in the file . When the relevant system of the Enforcement and Bankruptcy Law and the electronic sales regime are considered together, it is understood that the value of the property to be sold must first be determined, and then this value must be reflected in the sales announcement. Indeed, the electronic sales regulation mandates the display of the estimated value in auction announcements, and establishes the thresholds for setting up the auction based on this value. This structure shows that appraisal is an integral part of sales preparation.

In practice, this valuation is done by considering different factors depending on the nature of the property. For immovable properties, location, area, zoning status, usage type, actual occupation, title deed characteristics, comparable sales, and physical features are taken into account. For vehicles, data such as make, model, age, mileage, damage status, whether it is in working order, spare key, or registration certificate are important. For other movable assets, market value, condition of use, quantity, quality, and economic convertibility are prioritized. This second paragraph is a practice-based assessment of the function of the estimated value in the legislation.

Why has the importance of estimated value increased in e-commerce?

In the electronic sales system, since the listings are posted on the portal, the estimated value has become one of the key pieces of data directly visible to everyone participating in the auction. UYAP service descriptions state that citizens can review sales and submit bids through the portal. This means that the estimated value is no longer just a technical valuation within the file; it is also visible data that directly influences bidding behavior from the market.

Furthermore, under Article 111/b of the Enforcement and Bankruptcy Law, for an auction to be held, bids fifty percent of the estimated value , plus thresholds for preferential claims and expenses. Therefore, if the estimated value is set too low, the auction threshold may be artificially lowered; if it is set too high, competition may weaken, and the auction may fail. In other words, the estimated value is not just an "approximate value," but a key factor affecting the economic and procedural balance of the auction.

Are the estimated value and the market value the same?

No. The estimated value and the free market value do not always have to be exactly the same. The estimated value is the value determined within the compulsory sale regime and used as the basis for the auction; the free market value, on the other hand, represents the price that could be determined under conditions of free negotiation between the parties. The mandatory inclusion of the estimated value in electronic sales advertisements makes this value legally significant; however, it does not make it the absolute true market price.

This discrepancy is particularly noticeable in vehicle and real estate auctions. Sometimes the estimated value may be below the free market average, and sometimes it may appear higher than it is because the physical condition or legal risks are not fully reflected. Therefore, those participating in the auction should not only rely on the estimated value on the portal but also conduct their own market research. This conclusion stems from the difference between the location of the estimated value in the advertisement and the functioning of the electronic auction system.

What happens if the estimated value is determined incorrectly?

Setting an estimated value that is clearly inaccurate can disrupt the healthy functioning of the sales process. An excessively low valuation can undermine the preservation of the debtor's property value, while an excessively high valuation can reduce participation in the auction and make the sale more difficult. Furthermore, since the estimated value plays a role in calculating the minimum bidding threshold, an erroneous valuation can indirectly affect the legal outcome of the auction. The regulation's provision that the estimated value is not only an element of the announcement but also a part of the bidding threshold demonstrates this.

In practice, serious errors in property valuation can lead to complaints or even the annulment of the auction, if the conditions are met. In particular, the misrepresentation of essential characteristics or significant features affecting the economic value of the property can be decisive in the sales announcement and the outcome of the auction. This paragraph is a legal assessment of the function of property valuation in the sales process.

What documents does the estimated value rely on?

Although the legislation's electronic sales regime directly regulates the announcement and bidding phase in detail, the appraisal materials included in the file form the background for the estimated value. For immovable properties, title deed records, zoning and location data, comparable values, and actual condition assessment are considered; for vehicles, expert-like data, model-year, mileage, and damage status; and for other movable assets, market research and qualitative analysis are prominent. This second sentence is a result of practice regarding the nature of valuation in forced sales.

For those participating in the auction, it is important to be able to indirectly understand the logic behind the determination of the estimated value. For example, if a vehicle advertisement includes factors such as significant damage, missing keys, malfunction, or prolonged storage, the estimated value may have been determined accordingly. Information such as occupation, shared ownership, or actual use of the property also affects its value. This is a logical conclusion drawn from the functioning of the official auction system.

What is the relationship between the minimum bid price and the estimated price?

In the electronic sales regime, the most technical significance of the estimated value emerges here. According to the regulation and Article 111/b of the Enforcement and Bankruptcy Law, the bids on the portal fifty percent of the estimated value plus the sum of the claims secured by that property and having priority over the claim of the party requesting the sale, whichever is greater, as well as the costs of liquidation and distribution. Therefore, the estimated value is the mathematical component of the minimum auction threshold.

Therefore, whether the estimated value is set too low or too high is not merely an abstract debate about value; it has a concrete consequence affecting the feasibility of the auction. From the buyers' perspective, the "fifty percent of the estimate" rule is one of the technical limitations of the bidding strategy. From the debtor's and creditor's perspective, the accuracy of the valuation affects whether the auction will take place at a fair price.

Is the estimated price related to sales expenses?

Indirectly, yes. In the sales process, not only the value of the goods but also the sales expenses are important. The Ministry of Justice, Directorate of Enforcement Affairs, the 2026 Sales Expenses Tariffwas published in the Official Gazette on December 20, 2025, and came into effect on January 1, 2026. It is also stated that the current versions of the tariffs can be accessed from the Directorate's website. This shows that the economic components of the sales process cannot be considered independently of the valuation.

The estimated value is not directly the sales expense; however, sales expenses are one of the total economic thresholds considered in establishing the auction. Under Article 111/b of the Enforcement and Bankruptcy Law, the bid must exceed not only fifty percent of the estimated value but also the costs of liquidation and distribution. Therefore, in practice, the estimated value and sales expenses should be considered together.

What can the debtor do if they think the estimated value is too low?

The most important issue for the debtor is not to passively observe the valuation and sale announcement. Because determining an estimated value significantly below the true value of the property can cause irreparable harm to the outcome of the sale. Which procedural avenue is available in the specific case depends on whether an appeal against the valuation was filed within the prescribed time limit and at what stage the sale is. After the auction, if the conditions are met, this matter can also be brought to the discussion of auction annulment. This paragraph is a legal assessment of the impact of the valuation on the outcome of the sale.

The biggest mistake here is that the debtor thinks, "the price will go up in the sale anyway," and disregards the obvious error in the valuation. Electronic sales systems can increase competition; however, they do not guarantee that there will be enough buyers in every auction. Especially for goods with limited interest, an incorrectly estimated value can directly affect the outcome.

How should the buyer use the estimated price?

For a buyer participating in an auction, the estimated price is neither the final price nor a sole indicator of opportunity. The buyer should use this price as a point of reference ; it should be evaluated together with the advertisement information, the actual condition of the property, market research, possible delivery/registration costs, and sales expenses. Especially in vehicle and real estate sales, an attractive estimated price alone is not sufficient. This conclusion stems from the advertising and bidding logic of electronic sales.

A sound approach is this: first, the estimated value is assessed, then compared with free market data, and finally, legal risks and post-sale expenses are taken into account. This ensures that participation in the auction is based on a verifiable economic calculation, not on emotional factors or simply the perception of a discount. This assessment stems from the compulsory nature of enforcement sales and the structure of electronic auctions.

Conclusion

In enforcement sales, the estimated value is the approximate price determined after appraisal of the property being sold, and it is mandatory to display this price in electronic sales announcements. This price does not have to be the same as the free market price; however, it is one of the fundamental data that establishes the legal and economic framework of the auction. Especially in electronic auctions, the 50% of the estimated value and other legal thresholds play a critical role in the validity of bids.

Therefore, the estimated value is neither merely a symbolic figure nor an absolute sale price. The preservation of the property's value for the debtor, the success of the collection for the creditor, and a rational bidding strategy for the buyer are all directly linked to this figure. Accurate valuation is a prerequisite for a healthy foreclosure auction.