Where these houses come from
The vast majority of properties listed on Bidorado come from court-ordered forced sales, the Zwangsversteigerung. The local court, the Amtsgericht, sells the property to repay creditors. An appointed expert sets the market value, the Verkehrswert, in a report, the Gutachten. Note: this value is not a starting price, it serves as a reference for assessing bids. In addition, there are voluntary sales by real estate auction houses, with a starting price called Mindestgebot, an Exposé and a notary in the room. Finally, public bodies launch tenders, or Bieterverfahren, where written bids are submitted before a deadline.
Checks before bidding
Read the Gutachten: it describes the condition, the size and any easements, but the owner is not obliged to allow viewings. At the first hearing, bids below 50% of the market value are rejected, and those below 70% may be rejected at a creditor's request. Provide a security deposit of 10% of the market value if a creditor requests it: never in cash. Bidding takes place in person at the court, in German, and the court pronounces the award, the Zuschlag. No buyer's commission, no notary at your expense. A foreigner can buy without special authorisation.
Costs, payment and next steps
The price is not subject to VAT. Certain costs are always payable: transfer tax, Grunderwerbsteuer, from 3.5% to 6.5% depending on the Land, and registration in the land register, Grundbuch. For a voluntary sale at an auction house, a degressive commission including VAT is added and viewings are possible. For a public tender, respect the deadline and the written formalities. Have a German-speaking lawyer or translator assist you at the hearing, check the property's occupancy and charges, and arrange financing before bidding: the award is binding on you.