The purchase of a property can be handled in the normal way, i.e. in most cases via a real estate agent, or directly from private to private. However, there are also some interesting alternatives that you should consider.

At foreclosure auctions, you can save between 10 and 30% of the actual purchase price and make a real bargain.

Although the reason why a house is foreclosed is rarely pleasant for the previous occupants, this residential property still needs to find a new owner, so why not you?

Foreclosure occurs when the owner has become insolvent, the classic example.

But did you know that houses and flats also go under the hammer when heirs can't agree on what to do with the property, or spouses also fight over the house during a divorce? These so-called partition auctions are becoming increasingly common.

If interested, good preparation

Experts advise you to familiarise yourself with auctions and forced sales and to attend some of them before attempting to buy a suitable property yourself.

The auction organisers do not have all the information available that is important for you and should be known in advance, e.g. land register entries such as listed buildings and the resulting restrictions on alterations and use, or special conditions for tenants who cannot be terminated. These must be enquired about beforehand at the competent court, which keeps a file on the residential property.

Although the auction also provides an insight into these details, there is not enough time to inspect a property thoroughly.

The residential property

The property needs to be inspected beforehand, because if you only know it from photos and rely on descriptions in catalogues, disappointment is inevitable.

Once you have purchased a house, you can no longer cancel the purchase if you discover defects. These must be taken into account before the auction, as guarantees are not included in the purchase.

The forced sale

By the date of the foreclosure sale, you should be clear about the financing if you win the bid for your chosen property. You will be given six weeks to finalise the financing.

Whether the knockdown is accepted as valid depends on the predetermined market value, which determines a minimum bid at the first auction, but does not always lead to a satisfactory result for the creditors.

The calculation does not always work out if the maximum surcharge is between 50 and 70% of the market value, in which case the creditors decide whether to accept the bid or not. If not even half of the market value is reached, the court cannot accept the bid and the property must be offered again on another date.

From 70% of the market value, the highest bidder wins the bid and in some cases has to provide a security, which would be 10% of the purchase price.

Find out in advance which payment methods are available, as not all common payment methods are valid and always have your identity card ready, without which you cannot be admitted as a bidder.