This past Wednesday, there was a house auctioned off at the Amtsgericht (local court) in Überlingen. The process is called Zwangsversteigerung (forced auction) and we went as spectators to see how it worked as there is a place coming up for auction for which we would like to bid.
This place, however, was not of interest to us. The house was located in a village about 30 km away and not even in the village, rather outside in the countryside. The appraised value of the house was 380K euros, though just based on location, I expected it to go for less.
The auction took place in a room that seated about 50 people. There was a long metal desk at the front of the room where two officials who ran the process sat. The woman said very little. The man more or less ran the process. In front of the long desk, were three small desks each with 2 chairs, arranged in a semi circle around the long desk. Only the table on the far right was occupied, It was an older gentleman, dressed relatively shabbily who seemed to be the owener of the place.
Behind those three desks were three rows of chairs for the people taking part in the auction. In addtion of us, there were 2 couples who both placed bids, two men who were together who did not take part at all, and a man with a briefcase and a Lenin beard who also took part in the auction.
It started at nine with the male official reading out some information about the auction. There as the minimum bid that was required as well as information about the electrical connection to the house, which I did not really understand. He also explained a bit about the process, that it would last at least half an hour, and stressed that there was no advantage in waiting till the end of the half hour to place a bid. It would only end when no more bids were made. This was not like Ebay!
There are 2 requirements for submitting a bid. Identification and proof that the bidder has 10% of the appraised value of the property. It can be in the form of a check or it can be transferred over to the state bank prior to the auction
The bidding started at 9:12. A couple immediately went up to bid and placed a bid for 190K. Exactly half. And then the first problem. They have some form of proof about the 10% but not what is legally required. This requires the seller to say if he will accept the proof or not. Seems the bidder and the seller know one another and so this is clarified quickly.
Next the second couple walk up and place a bid. I do not remember what that is but again, the form of proof of the 10% is again not what is legally required. This time, the sellers and the bidder leave the room to discuss and when the come back in, the bidder says he dismisses the requirement that the bidder show proof.
At this point, there is a lull in the action. My wife uses this as an oppurtunity to walk up to the officials to ask some questions about the process that are not super clear. For example, if we transfer over the money, will it be automatically be transferred back? The man assures us that it is straight forward. He also tells us that if we are planning on bidding on the place, we should do the transfer right away. Good piece of info.
Next, the man with the Lenin beard approaches the seller and asks for a meeting outside the room. It takes a few minutes and the seller again says he dismisses the 10% requirement when he comes back into the room. Now the bidding heats up. The man with the Lenin beard and the first couple who made the bid bid against one another, first starting in 1000 euro increments, then lowering to 100 euro increments until the price reaches 250K. At that point, the couple stop. Its been more than 30 minutes since the timer began. There is no gavel thud to announce the winner, It is pretty low key.
We sneak out immediately as we need to get to work. It was surprising how unofficial and set of the pants the whole thing was. Rules just did not seem to apply.
And how much under the appraised value it went for. The place we are looking at is in Markdorf, right in the middle of town. I would guess there will be far more interest. I am also guessing the it will not go for so much less than the appraised value. My feeling is, based on what we are willing to pay, that we will not get the house. Let's see how it turns out.
This place, however, was not of interest to us. The house was located in a village about 30 km away and not even in the village, rather outside in the countryside. The appraised value of the house was 380K euros, though just based on location, I expected it to go for less.
The auction took place in a room that seated about 50 people. There was a long metal desk at the front of the room where two officials who ran the process sat. The woman said very little. The man more or less ran the process. In front of the long desk, were three small desks each with 2 chairs, arranged in a semi circle around the long desk. Only the table on the far right was occupied, It was an older gentleman, dressed relatively shabbily who seemed to be the owener of the place.
Behind those three desks were three rows of chairs for the people taking part in the auction. In addtion of us, there were 2 couples who both placed bids, two men who were together who did not take part at all, and a man with a briefcase and a Lenin beard who also took part in the auction.
It started at nine with the male official reading out some information about the auction. There as the minimum bid that was required as well as information about the electrical connection to the house, which I did not really understand. He also explained a bit about the process, that it would last at least half an hour, and stressed that there was no advantage in waiting till the end of the half hour to place a bid. It would only end when no more bids were made. This was not like Ebay!
There are 2 requirements for submitting a bid. Identification and proof that the bidder has 10% of the appraised value of the property. It can be in the form of a check or it can be transferred over to the state bank prior to the auction
The bidding started at 9:12. A couple immediately went up to bid and placed a bid for 190K. Exactly half. And then the first problem. They have some form of proof about the 10% but not what is legally required. This requires the seller to say if he will accept the proof or not. Seems the bidder and the seller know one another and so this is clarified quickly.
Next the second couple walk up and place a bid. I do not remember what that is but again, the form of proof of the 10% is again not what is legally required. This time, the sellers and the bidder leave the room to discuss and when the come back in, the bidder says he dismisses the requirement that the bidder show proof.
At this point, there is a lull in the action. My wife uses this as an oppurtunity to walk up to the officials to ask some questions about the process that are not super clear. For example, if we transfer over the money, will it be automatically be transferred back? The man assures us that it is straight forward. He also tells us that if we are planning on bidding on the place, we should do the transfer right away. Good piece of info.
Next, the man with the Lenin beard approaches the seller and asks for a meeting outside the room. It takes a few minutes and the seller again says he dismisses the 10% requirement when he comes back into the room. Now the bidding heats up. The man with the Lenin beard and the first couple who made the bid bid against one another, first starting in 1000 euro increments, then lowering to 100 euro increments until the price reaches 250K. At that point, the couple stop. Its been more than 30 minutes since the timer began. There is no gavel thud to announce the winner, It is pretty low key.
We sneak out immediately as we need to get to work. It was surprising how unofficial and set of the pants the whole thing was. Rules just did not seem to apply.
And how much under the appraised value it went for. The place we are looking at is in Markdorf, right in the middle of town. I would guess there will be far more interest. I am also guessing the it will not go for so much less than the appraised value. My feeling is, based on what we are willing to pay, that we will not get the house. Let's see how it turns out.
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