Where these investment properties come from
The investment properties on offer come from private real estate auction houses, the Grundstücksauktionen, which hold public room auctions in several major German cities. Bidding takes place in person, by phone, in writing or online. Other sales run entirely online for several weeks, then end with a live phase led by a licensed auctioneer. Each property has a starting price, called Auktionslimit or Mindestgebot. The adjudication, the Zuschlag, is recorded by a notary present at the sale, which constitutes the purchase contract. A foreign buyer, whether an individual or a company, can buy without any special authorisation.
Checks before bidding
Read the Exposé published for each property and request the available documents: land register extract, energy certificate, tenancy situation, easements. Check whether the building is let or vacant, as this changes the management and expected yield. A viewing by appointment is often possible before the sale. Budget for the full costs: buyer's premium on a sliding scale by price, including VAT, then transfer tax of 3.5 to 6.5% depending on the Land, notary fees and land register registration. There is no VAT on the property price. A financial guarantee or proof of funds may be required to bid.
Adjudication and what follows the purchase
After the adjudication, the notary records the sale and you become the buyer under the terms announced by the auction house. Payment, transfer of ownership and land register registration follow the procedure set out by the seller and the notary. Court-ordered forced sales, the Zwangsversteigerung, also exist in Germany, but they do not yet appear on Bidorado. To track property lots spread across several auction houses, use the Bidorado Radar: it brings together translated public and private sales, with the starting price and buyer's premium, and you then bid on the seller's official website.