Where these properties come from
Most properties listed on Bidorado come from court-ordered forced sales, the Zwangsversteigerung. The local court, the Amtsgericht, sells the property and an expert sets its market value, the Verkehrswert, in a written report. This value is not a starting price. In addition, there are voluntary sales by real estate auction houses, with a starting price called Mindestgebot and a descriptive Exposé, as well as tenders from public bodies, the Bieterverfahren, where the written offer must arrive before a deadline. The three channels coexist and do not follow the same rules.
Checkpoints before bidding
Read the expert report and the Exposé carefully: condition of the building, occupancy, easements, charges and works. The owner is not obliged to allow viewings, so plan an external inspection and, if possible, 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 deposit of 10% of the market value may be required, never in cash. Bidding takes place in person at the court, in German. Also budget for transfer tax, from 3.5% to 6.5% depending on the Land, and land registry fees.
Award, payment and taking possession
There is no buyer's commission or notary in a forced sale: the court pronounces the award, the Zuschlag, which transfers the property. No VAT is added to the price. A foreign buyer can purchase without special authorisation. For a voluntary sale, the notary is present in the room and a degressive commission, VAT included, applies. Payment and handover of keys then follow the schedule set by the court or the seller. Get support with the land registry formalities and with taking responsibility for occupants or ongoing charges.