Real estate auc­tions and bid­ding pro­ce­du­res

Real estate auc­tion: vol­un­t­a­ry auc­tion or sale by bid­ding pro­ce­du­re

The gene­ral­ly publicly appoin­ted, sworn auc­tion­eer is aut­ho­ri­zed to sell real estate for third par­ties by way of auc­tion or bid­ding pro­ce­du­re.
Most of the auc­tion­eers working for DEUT­SCHE PFAND­VER­WER­TUNG con­duct their busi­ness, which requi­res a licen­se, both as auc­tion­eers and as real estate bro­kers in accordance with sec­tions 34 b and 34 c of the GewO.

If you want to sell real estate — now is the time!

At pre­sent, the­re is pro­ba­b­ly a his­to­ri­cal­ly uni­que oppor­tu­ni­ty to achie­ve top pri­ces when sel­ling real estate. The pre­re­qui­si­te for this is the right stra­tegy. Experts warn that the upward pri­ce ran­ge for real estate has lar­ge­ly been exhaus­ted.

It is well known that the finan­cial sys­tem, espe­ci­al­ly in Euro­pe, is on “thin ice”. It is the­r­e­fo­re advi­sa­ble for for­ward-loo­king inves­tors to take advan­ta­ge of the open win­dow of oppor­tu­ni­ty now and take pro­fits on “con­cre­te gold”. After all, even finan­cial pro­fes­sio­nals can­not make a serious fore­cast about the dura­ti­on of the cur­rent boom given the vola­ti­le finan­cial mar­kets.

It has been his­to­ri­cal­ly pro­ven that real estate owners are not neces­s­a­ri­ly among the win­ners in times of eco­no­mic uphe­aval. In the so-cal­led prime loca­ti­ons, pro­per­ties are often overva­lued spe­cu­la­ti­ve objects that dra­ma­ti­cal­ly lose value in a cri­sis. In times of cri­sis, the sta­te also inter­ven­es with high tax bur­dens and levies. This hap­pen­ed twice in the 20th cen­tu­ry: in 1924 as a house inte­rest tax and after 1945 as an equa­liza­ti­on of bur­dens.

Important to know: Cru­cial mista­kes can be made when sel­ling! If you don’t have enough time, the spe­ci­fic know-how and strong nego­tia­ting skills, you are well advi­sed to com­mis­si­on a pro­fes­sio­nal to hand­le the sale.

If you want to achie­ve the hig­hest pos­si­ble sales pri­ce, it is advi­sa­ble to first deci­de on the right sales chan­nel — even befo­re you invol­ve a sales part­ner. Deal­ing with this ques­ti­on can be very rewar­ding for you.

Real estate auc­tion or bid­ding pro­cess

If the­re is a high demand for the pro­per­ty, it makes sen­se to sell pro­per­ties via an auc­tion or bid­ding pro­cess, as this approach offers first-class chan­ces of suc­cess. This sales chan­nel is the best way to achie­ve the hig­hest pos­si­ble sales pri­ce within a set peri­od of time.

In con­trast to the estate agent, it is the task of the auc­tion­eer to deter­mi­ne the best pri­ce. Due to the dif­fe­rent approach, the auc­tion­eer does not face the estate agen­t’s dilem­ma, which often leads to pri­ce reduc­tions in the final pha­se of nego­tia­ti­ons.

It also makes sen­se to com­mis­si­on an auc­tion­eer if the pro­per­ty is at risk of fore­clo­sure.

In the past, we were regu­lar­ly cal­led in by bor­ro­wers’ lawy­ers. The reason for this was that, as an auc­tion­eer, we always achie­ve hig­her sales pro­ceeds than the offi­ci­al judi­cial offi­cers in fore­clo­sure pro­cee­dings sim­ply becau­se of our ser­vices (appli­ca­ti­on, advice, vie­wings).