Buying Foreclosed Property (Zwangsversteigerung): Bargain or Trap?

Buying a house through a forced sale (Zwangsversteigerung) at the local district court (Amtsgericht) is a completely different game than the open market. There is no notary, no agent fee, and potentially a very low price. But beware: you might be buying a 'cat in the sack'.

1. No Viewing Possible

The biggest risk is that you usually cannot view the interior. The current owner or tenant is not obliged to let you in. You are bidding based solely on the court's expert valuation report (Gutachten). If the pipes are broken or the interior is trashed, that is your problem after the auction.

2. The Bidding Process

To bid, you must bring a security deposit (Sicherheitsleistung), usually 10% of the market value, in the form of a Bundesbank check or a prior bank transfer. Cash is not accepted! If you win the bid (Zuschlag), you immediately become the legal owner, even before paying the rest or being entered in the land register.