Where these property lots come from
The properties offered on Bidorado come from private German property auction houses, the Grundstücksauktionen. These companies hold public room auctions in several major cities, as well as fully online sales that run over several weeks before ending with a live phase led by a licensed auctioneer. The properties on offer vary: detached houses, investment properties, flats, commercial premises and land. Each lot is presented with a description, the Exposé, setting out the property's situation, use and any constraints. Court-ordered forced sales, the Zwangsversteigerung, also exist in Germany, but they do not yet appear on Bidorado. The site does not sell anything itself: it gathers listings and links to the seller's official website for bidding.
How to bid from the UK
A foreign buyer, whether an individual or a company, can buy property in Germany without special authorisation. To bid, you must first read the property's Exposé and, if possible, view it by appointment before the sale. Auction houses generally accept bids in person, by phone, in writing or online. Each property has a starting price, called the Auktionslimit or Mindestgebot. The award, the Zuschlag, is recorded by a notary present at the sale, which constitutes the purchase contract. A financial guarantee, the Bietungssicherheit, or proof of funds may be required to take part. Prepare your documents in advance and check the exact terms with the auction house before the sale date.
The real price: fees and taxes
The hammer price is not the final cost. A buyer's commission, called Aufgeld or Courtage, is added. It is tiered according to the property price and is inclusive of VAT. Unlike movable goods, there is no VAT on the price of a property. Add the mandatory purchase costs: transfer tax, Grunderwerbsteuer, at a rate varying from 3.5 to 6.5% depending on the Land, plus notary and land registry fees, the Grundbuch. Bidorado shows the starting price with the buyer's commission; transfer tax and notary fees are still to be added. Also allow for any file fees and fees relating to the notarial deed. These costs are payable on top of the hammer price and must be included in your budget before bidding.
Viewings, documents and guarantees
Before the sale, the auction house publishes a detailed description for each property, the Exposé, and often useful documents: an extract from the land register, Grundbuchauszug, an energy certificate, Energieausweis, the rental situation indicating whether the property is vermietet or leerstehend, and easements, Baulasten. Viewings are often possible before the sale by appointment. A financial guarantee, Bietungssicherheit, or proof of funds may be required to bid. The award is recorded by a notary, which constitutes the purchase contract. Check the rental situation if the property is occupied, as this may delay taking possession. Read the Exposé and the documents provided carefully, and ask the auction house your questions before the registration deadline.
Paperwork and formalities after the award
Once the award is made and recorded by the notary, you are bound by a purchase contract. You must then pay the price and the fees. Transfer tax, Grunderwerbsteuer, is payable at the rate of the Land where the property is located. Notary and land registry fees, Grundbuch, are added. Ownership only transfers once the buyer is entered in the land register, after the price and transfer tax have been paid. Arrange legal or notarial support to secure the transaction and check any easements or charges registered in the land register.
Pitfalls to avoid
Do not rely on the auction price alone: the buyer's premium and purchase costs can significantly increase the bill. Always check the transfer tax rate applicable to the Land concerned, as it varies from 3.5 to 6.5%. Read the Exposé and the accompanying documents carefully: a vermietet property may remain occupied, a leerstehend property may require work. Make sure you have the financial guarantee or proof of solvency required to bid. Do not commit without having visited the property or had its condition checked. Finally, bear in mind that the auction constitutes a contract: once the Zuschlag is pronounced, you can no longer withdraw. Prepare your budget and your checks before the sale.