Where these investment properties come from
The majority of investment properties listed on Bidorado come from court-ordered forced sales, the Zwangsversteigerung. The local court, the Amtsgericht, sells the property and an expert sets the market value, the Verkehrswert, in a Gutachten. This value is not a starting price. Added to these are voluntary sales by real estate auction houses, with a starting price and an Exposé, and public tenders, the Bieterverfahren, where written bids are submitted before a deadline. These sales are scattered and little known outside Germany, which Bidorado's Radar makes visible.
Checkpoints before bidding
Read the Gutachten and verify the property's actual condition, its occupancy, existing leases and co-ownership charges. The owner is not obliged to allow viewings. At the first hearing, bids below 50% of the Verkehrswert are rejected and those below 70% may be rejected at a creditor's request. A deposit of 10% of the Verkehrswert may be required, never in cash. Budget for the costs that always apply: transfer taxes, from 3.5% to 6.5% depending on the Land, and the land registry. No VAT on the price, no buyer's commission or notary fees in forced sales.
Bidding, winning, then taking possession
You bid in person at the court, in German, and the court awards the property, the Zuschlag. A foreigner can buy without special authorisation. In voluntary sales by real estate auction houses, a notary is present, viewings are possible and a degressive commission, including VAT, is added. Then arrange for the handover of keys, management of occupants and leases, and entry in the land registry. Have a local lawyer or notary assist you with the procedure and a translator for the hearing.