Buying a house at auction in Germany: the guide

Three ways to buy a property at auction in Germany

Real estate is sold at auction through three very different channels, and you need to know which one you are dealing with before bidding.

• Court-ordered forced sales (Zwangsversteigerung): the local court (Amtsgericht) sells the property of an owner who is not paying their debts, or of a co-ownership that cannot agree. This is by far the largest volume. See our dedicated guide to forced sales.
• Voluntary room auctions: specialised auction houses (Grundstücksauktionen) hold public auctions several times a year in major cities. Sellers are private individuals, companies, municipalities or public bodies.
• Online auctions and tenders: some platforms sell online for several weeks, then conclude with a live phase. Public bodies (federal government, Länder, municipalities, Deutsche Bahn, Churches) often sell by sealed-bid tender (Bieterverfahren): each party submits an offer before a deadline.

On Bidorado, the Real Estate section brings these three channels together. Each listing clearly states whether it is a court sale, a room auction or a tender.

Can a foreigner buy?

Yes. In Germany, a foreign individual or company can buy a property without any special authorisation. You need a valid ID and, for a company, a register extract. Auctions are conducted in German: if you do not speak it, bring someone with you or give power of attorney to a trusted person.

Before the sale: the property file

Each property is presented with a description (Exposé) and often documents:

• the land register extract (Grundbuchauszug): owner, charges, easements, mortgages;
• the energy certificate (Energieausweis);
• the rental situation: property let (vermietet) or vacant (leerstehend). An existing lease continues after the sale;
• building encumbrances (Baulasten) and the development plan for a plot;
• for a forced sale, the court expert report (Gutachten), which sets the market value (Verkehrswert).

Read everything, ask for a viewing when possible, and have the file checked by a professional if the amount is significant. A successful bid is binding: there is no cooling-off period.

The day of the sale

In the room, bids are made aloud or by a sign. In voluntary auctions, it is often possible to bid by phone, in writing or online. A deposit (Bietungssicherheit) or proof of funds may be required before bidding: find out in advance about its exact form.

In a voluntary sale, a notary present records the adjudication (Zuschlag): it constitutes the contract of sale. In a forced sale, it is the court's decision that awards the property.

After the sale

You must pay the price within the agreed deadline, then the costs: auction house commission in a voluntary sale, transfer tax (Grunderwerbsteuer), notary and land register (Grundbuch) fees. See our guide on purchase costs. Ownership transfer is registered in the land register once the price and taxes are paid.

Pitfalls to avoid

• Bidding without having read the land register: some charges remain attached to the property.
• Forgetting the costs: they are added to the hammer price.
• Underestimating occupancy: a tenant stays in place, an unauthorised occupier may require legal proceedings.
• Relying on photos: visit, or have someone visit, as soon as possible.

Bidorado does not sell anything and does not give legal advice: each listing links to the official advertisement, which is authoritative.