×
Buying real estate in Switzerland is often perceived as an obstacle course, with high prices and fierce competition. However, there is a little-known but advantageous alternative: real estate auctions. Although less conventional, this method of acquisition enables you to buy property at attractive prices, often below market rates. Here's everything you need to know to make your auction purchase a success.

Why buy property at auction?

Real estate auctions, organized by the cantonal debt enforcement and bankruptcy offices, enable the purchase of property seized for non-payment or bankruptcy.

The main advantages are:
  • Prices often below the market: Auctioned properties are sometimes sold at very attractive amounts, particularly where competition is weak.
  • Transparent process: Auctions are public, allowing everyone to see the evolution of bids in real time.
  • A wide choice of properties: From condominium apartments to rental properties and detached houses, opportunities are varied.
  • Rapid acquisition: Unlike conventional transactions, the process is simplified and can be finalized in just a few weeks.


How does a real estate auction work?


1. Finding properties for auction

Auction announcements are published on the websites of cantonal debt enforcement and bankruptcy offices, or on specialized platforms. It is advisable to study the official documents carefully to determine the condition of the property and any encumbrances.

2. Preparing your application

Before taking part, you'll need to pay a deposit (usually 10% of the estimated price) and provide certain financial guarantees. You should also make sure you have the necessary funds, as buying at auction does not allow for a suspensive clause linked to a bank loan.

3. Taking part in the auction

On the big day, the auction takes place under the supervision of a public official. Each bid must exceed the previous bid by a minimum amount (often CHF 10,000). After three calls without a new bid, the property is awarded to the last bidder.

4. Finalizing the purchase

The buyer has a short period of time (often 30 days) to pay the total amount and finalize the purchase before a notary. Additional costs such as notary's fees and transfer tax are to be expected.


What are the risks and precautions to be taken?

Although auctions offer great opportunities, they also present risks:
  • No guarantee of the property's condition: it is sometimes impossible to visit the property prior to purchase.
  • Potential renovation costs: Some properties require major work.
  • Administrative complexity: It is advisable to be accompanied by a real estate expert or a specialized lawyer.

To sum up

Buying a property at auction can be an excellent way of achieving home ownership at a lower cost, provided you are well prepared. With a good knowledge of the process and a rigorous analysis of the opportunities, you can make some very good deals!


Sources
neho.ch - Article
immobilier.ch - Article