Three ways to buy property at auction in Germany
Properties listed on Bidorado come from three channels that do not work in the same way. The vast majority are forced sales ordered by the courts (Zwangsversteigerung): each listing shows this with the label 'Court sale' and displays the market value set by the court expert. Next are voluntary sales organised by real estate auction houses, in the room or online, where the property has a starting price. Finally, public bodies (federal government, Länder, municipalities, Deutsche Bahn, Churches) sell by sealed-bid tender: each bidder submits an offer before a deadline. Before bidding, always check the type of sale shown on the listing, as the rules, fees and deadlines differ completely from one channel to another.
Court-ordered forced sales (Zwangsversteigerung)
A forced sale is organised by the local court (Amtsgericht) when an owner does not pay their debts, or to end co-ownership. An expert first values the property: their report (Gutachten) sets the market value (Verkehrswert), which is not a starting price. At the first hearing, a bid below half of this value is rejected automatically, and a bid below 70% may be rejected at a creditor's request; these thresholds no longer apply at a subsequent hearing. Bidding takes place in person at the court, in German, for at least 30 minutes. A creditor may require a deposit of 10% of the market value, never in cash: advance bank transfer or banker's cheque, according to the court's instructions. There is no buyer's commission or notary: the court awards the property (Zuschlag), and the buyer becomes owner through this decision.
Sales by real estate auction houses
Specialised auction houses (Grundstücksauktionen) hold public sales several times a year in major cities, and some also sell online for several weeks before a live phase. Each property has a starting price (Mindestgebot or Auktionslimit) and a detailed description (Exposé). You can bid in person, by phone, in writing or online, after registering and providing, if the auction house requires it, a deposit or proof of funds. A notary present in the room records the award, which constitutes a contract of sale. The buyer pays a commission (Aufgeld or Courtage) on a sliding scale according to the price, including VAT. Viewings are generally possible by appointment before the sale.
Tenders by public bodies
The federal government (BImA, BVVG for agricultural land and forests), several Länder, municipalities, Deutsche Bahn and the Churches also sell properties by tender (Bieterverfahren). There are no public auctions: each candidate submits a written offer before a deadline, sometimes above a minimum price or a published guide price. The seller is not always obliged to accept the highest offer and may take into account a project or a construction deadline. These sales are marked 'Tender' on Bidorado, with the submission deadline.
The true cost depending on the type of sale
The auction price is never the final price. In all cases, you must add transfer tax (Grunderwerbsteuer), the rate of which is set by each Land, from 3.5% to 6.5%, as well as land registry (Grundbuch) registration. In a forced sale, court fees for the award are added, but there is no commission or notary for the purchase. In a voluntary sale, you must allow for the auction house commission and notary fees. In a public tender, there is generally no commission, but a notarial deed. There is no VAT on the price of a property. Our guide on purchase costs details these items, and each listing reminds you which ones apply.
Before bidding: essential checks
For a forced sale, the reference is the court's expert report: read it in full, especially the condition and occupancy of the property, as the owner is not obliged to allow viewings and the valuation may be several months old. Also check the rights that remain attached to the property after the sale, as read out at the hearing. For a voluntary sale, read the Exposé, the land register extract (Grundbuchauszug) and the energy certificate (Energieausweis), and view the property when possible. In all cases, a rented property remains rented, and a hearing can be cancelled at the last minute: check the official listing on the day. For a major purchase, have a lawyer or a professional familiar with German procedure accompany you.