Where the apartments for sale come from
Most apartments listed come from forced sales ordered by a court. The local court, Amtsgericht, sells the property to satisfy creditors. An appointed expert sets the market value, Verkehrswert, in a report available for inspection, and this value is not a starting price. There are also voluntary sales by real estate auction houses, with a starting price and Exposé, as well as public tenders, Bieterverfahren, where the written bid must arrive before a deadline. Each listing states the type of sale and the market value or starting price.
Checkpoints before bidding
Read the expert report and note the market value, the condition of the building, the co-ownership charges, approved works and current occupancies. The owner is not obliged to allow viewings: arrange an external inspection and seek advice from a local professional. At the first hearing, bids below 50% of the market value are refused, and those below 70% may be refused at a creditor's request. A security deposit of 10% of the market value may be required, never in cash. Bidding takes place in person at the court, in German.
Award, costs and next steps
The court pronounces the award, Zuschlag, with no buyer's commission or notary for a forced sale. A voluntary sale, by contrast, goes through a notary in the room, with a degressive commission including VAT. In all cases, allow for transfer tax, Grunderwerbsteuer, from 3.5% to 6.5% depending on the Land, and land registry fees, Grundbuch. No VAT applies to the property price. A foreign buyer can purchase without special authorisation. Then plan for management, refurbishment and possible re-letting.