Are you faced with the decision to sell your property in the best possible way and wondering if an auction house is the right approach? A thorough comparison of auction houses can make the difference between a good and an excellent sales result. Discover which criteria are crucial and how to find the right partner for your success.
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The topic briefly and concisely
A thorough comparison of auction houses is crucial for sales success and should include criteria such as reputation, costs, reach, and specialisation.
Property auctions offer advantages such as a quick sale (often within 6-8 weeks), competitive price discovery, and high legal certainty through notarial certification.
An independent property appraisal before contacting auction houses strengthens your negotiating position and helps set market-appropriate minimum bids.
Selling a property is a significant decision, often associated with complex emotions and financial expectations, especially for heirs. Is an auction house the best choice for a fast and market-appropriate sale? A careful comparison of auction houses is essential. This article highlights the decisive factors, from expertise to costs, to help you make an informed decision and optimize the sales process. We show you how to avoid pitfalls and fully realize the potential of your property.
Understanding the Basics: What Can a Property Auction House Offer?
An estate auction house organises the public sale of properties through a voluntary auction. Unlike forced auctions, it is the owners themselves who decide on the sale here. Reputable auction houses employ publicly appointed and sworn auctioneers who ensure a transparent and legally secure process. The process is regulated by law, for example, by the Auctioneers Ordinance. A key advantage is the often rapid sales process, which can take as little as 6 weeks from the offer to the acceptance.
The main task of the auction house is to reach as wide a circle of bidders as possible and to achieve an optimal price through competition. Many houses reach over 200,000 potential buyers via catalogues and online marketing. Before deciding on a house, a thorough auction house comparison is crucial. This ensures that your property receives the attention and valuation it deserves. Setting a market-appropriate minimum bid by an expert panel is an important first step.
Top criteria for your auction houses comparison
The choice of the right auction house is a critical success factor. Not every house suits every property or seller. A systematic comparison of auction houses should cover multiple dimensions. Make sure to pay attention to at least 5 key aspects to make an informed decision.
Consider the following points in your evaluation:
Reputation and Experience: How long has the auction house been in the market? Are there transparent success records and customer references? A house with over 30 years of experience and more than 1,200 conducted auctions, for example, signals high professionalism.
Specialisation: Is the house specialised in certain types of properties or regions? A specialist in luxury properties in major cities has different networks compared to an expert in agricultural land.
Marketing and Reach: Which channels does the auction house use for marketing? Does it reach a relevant target audience, even internationally? The use of online portals, newsletters, and PR work is standard today.
Transparency in Processes and Costs: Are all processes clearly documented? Are fees for sellers and buyers openly communicated? The costs for sellers are often success-dependent and negotiated individually.
Additional Services: Does the house offer a solid property valuation in advance? How does it assist in compiling the documentation? A free initial assessment is common with many providers.
These criteria help you separate the wheat from the chaff and find a partner who best represents your interests. The next step is a detailed analysis of the cost structure.
Costs and Fees in Focus: What does a property auction cost?
The cost structure at property auctions is a crucial aspect in comparing auction houses. The good news for sellers is: costs typically only arise in case of success. This means if your property is not auctioned, you usually incur no fees for submission or appraisal by the auction house. The rate of the seller's commission (often referred to as 'Abgeld') is success-dependent and individually agreed upon depending on the type and value of the property. This commission often ranges between 5% and 15% of the achieved hammer price but can vary.
For buyers, the total price consists of the highest bid (hammer price) and additional costs. This includes the buyer’s premium (commission) for the auction house, whose amount depends on the hammer price and is staggered on a degressive scale. This premium becomes due directly with the hammer price. Additionally, there are notary fees for the certification of the purchase contract and land transfer tax, which, depending on the federal state, ranges between 3.5% and 6.5% of the purchase price. A bidding security or a proof of creditworthiness is often required prior to the auction. Clarify all cost elements exactly in advance. A transparent presentation of all fees is a sign of a reputable auction house.
The Auction Process: From Consignment to Sale
The process of a property auction is clearly structured and aims for a quick and legally secure sale. A typical process includes approximately 5 main phases. Everything begins with your initial contact and the auction house's free initial assessment of your property. During this stage, it is determined whether your property is suitable for auction.
The individual steps often proceed as follows:
Property assessment and valuation: Experts from the auction house evaluate your property and agree with you on a market-appropriate minimum bid (auction limit). This may include an on-site inspection.
Contract and document procurement: You give the auction house a binding auction mandate. The house assists you in compiling all necessary documents.
Marketing: The auction house promotes your property through various channels, such as catalogues, online platforms, and direct approaches to potential buyers. The aim is to reach often over 200,000 interested parties.
Auction day: The property is auctioned publicly. Bidders can participate in person, by phone, in writing, or online. The auctioneer awards the property to the highest bidder after the third hammer strike.
Contract execution: Immediately after the awarding, the notarial certification of the purchase contract takes place on-site. The auction house often supports the further processing until the purchase price is paid and ownership is transferred.
The average sales rate at established auction houses is often over 85% of the properties offered. This efficient process is a key reason for choosing an auction. Now, the question arises, what specific advantages does this path offer?
Benefits of a Property Auction: Speed and Optimal Price
Opting for a property auction as part of your comparison of auction houses offers several significant advantages. One of the most common reasons is the speed of sale: The entire process from submission to notarised sale can often be completed in just 6 to 8 weeks. This is a compelling argument, particularly for heirs or when quick liquidity is required.
Another key advantage is competitive price discovery. Through public bidding, a price can be achieved that reflects or even exceeds the current market value. The set minimum bid provides a floor. The legal certainty is also high: The acceptance of the bid is binding and immediately notarised, excluding renegotiations. Furthermore, the professional marketing by the auction house ensures wide exposure, often reaching a six-figure number of potential bidders. The pre-auction credit check of bidders minimises the risk of payment defaults. For an objective assessment of whether an auction is suitable for your specific property, a neutral evaluation by experts such as Auctoa can be very helpful. This ensures that you are aware of all your options.
Weighing risks and disadvantages: When is an auction not ideal?
Despite many advantages, a property auction is not the best solution for every situation or property. An important aspect in comparing auction houses is the realistic assessment of potential drawbacks. Although success-dependent, the costs can be higher at some auction houses than with a traditional estate agent sale, especially when considering the buyer's premium and seller's commission together. It is important to calculate the total costs precisely.
Another point is the loss of direct control over the sales process and buyer selection. The highest bidder is awarded the property, regardless of the seller's personal preferences. Moreover, the outcome of an auction is never 100% guaranteed. Even if sales rates are often high (over 85%), there is always a residual risk that the reserve price will not be met. In such cases, the seller typically incurs no direct costs from the auction house, but time has been invested. For very special or difficult-to-value collector's items, a discreet sale through specialised agents may sometimes be more suitable. A data-driven analysis, as offered by Auctoa with ImmoGPT, can help to identify the optimal sales strategy for your property before committing to a specific sales path.
auktionshauser-vergleich
Before you take the step to an auction house, a neutral and data-driven valuation of your property is invaluable. This is where Auctoa comes in. We understand that heirs and private property owners need quick, but above all, trustworthy market values without conflicts of interest. Our digital companion provides you with AI-driven property valuations and strategic advice. With a precise valuation from Auctoa, based on current market data and over 1,000 comparable properties, you get a solid foundation for your auction house comparison.
Are you wondering if the minimum bid proposed by an auction house is really in line with the market? Or whether an auction is the best sales method for your specific situation at all? Our ImmoGPT-Chat can provide you initial assessments and explain complex questions clearly. An Auctoa valuation helps you enter discussions with auction houses with greater confidence and better arguments. This way, you can minimize the risk of misunderstandings and strengthen your negotiating position. Use our expertise to make data-driven decisions instead of relying solely on your gut feeling. Get in touch with us now without any obligation or try our ImmoGPT-Chat for an initial orientation.
Conclusion: Choose the right auction partner with care
Is an auction always better than a broker sale?
Not necessarily. An auction is ideal for quick, transparent sales with potentially optimal price discovery. For very special properties or when maximum discretion is desired, a broker may be the better choice. A neutral assessment helps in making the decision.
What documents do I need for a property auction?
You will typically need a current land register extract, energy certificate, floor plans, building descriptions, and possibly rental agreements. The auction house will assist you in compiling them.
What happens if my property does not sell at auction?
If the minimum bid is not reached, there is no sale. Reputable auction houses usually do not charge the seller in this case. Sometimes there is the possibility of a post-auction sale.
Can I as a seller set the minimum bid myself?
The minimum bid (auction limit) is usually set in consultation with the auction house experts. It should be market-appropriate and capable of attracting bidder interest.
How transparent is the bidding process at a property auction?
In voluntary property auctions conducted by reputable auction houses, the bidding process is very transparent. Bids are public, and the property goes to the highest bidder.
How can Auctoa help me with the auction process?
Auctoa offers neutral, AI-supported property valuations and strategic advice before you contact an auction house. This provides you with a solid basis for negotiations and setting the minimum bid.
Additional useful links
Destatis provides an overview page on construction prices and real estate price indices from the Federal Statistical Office.
Tables on house and building land prices are also available from Destatis.
A press release from Destatis gives information on the development of real estate prices (March 2025).
Further information on real estate price developments can be found in a press release from Destatis (June 2024).
Statista shows the price index of existing residential properties in Germany with quarterly figures.
The house price index in Germany since the year 2000 can also be found at Statista.
A comprehensive article on auctions is available on Wikipedia.
Tagesschau reports on the stabilisation of real estate prices in the second quarter.
Zeit Online examines real estate prices and housing construction orders based on data from the Federal Statistical Office.
Haufe analyses the downward trend of real estate prices in German cities.
FAQ
Is an auction always better than selling through an estate agent?
Not necessarily. An auction is ideal for quick, transparent sales with potentially optimal price discovery. For very specific items or when maximum discretion is desired, an estate agent might be the better choice. A neutral assessment can aid in the decision-making process.
What documents do I need for a property auction?
You typically need a current land register extract, energy certificate, floor plans, building descriptions, and possibly tenancy agreements. The auction house will assist you with the compilation.
What happens if my property doesn't sell at the auction?
If the minimum bid is not reached, no sale will take place. In this case, reputable auction houses usually do not charge the seller any costs. Sometimes there is the possibility of a subsequent sale.
Can I set the minimum bid as a seller myself?
The minimum bid (auction limit) is usually determined in collaboration with the auction house experts. It should be in line with the market and capable of growth to attract bidder interest.
How transparent is the bidding process at a property auction?
In voluntary real estate auctions conducted by reputable auction houses, the bidding process is highly transparent. Bids are public, and the property is awarded to the highest bidder.
How can Auctoa help me with the auction process?
Auctoa offers a neutral, AI-supported property evaluation and strategic consulting before you contact an auction house. This provides you with a solid foundation for negotiations and setting the minimum bid.
