The bidding process is a relatively new and largely unknown form of offer in Germany. It is a non-binding offer and constitutes an invitation to submit a purchase offer.
Most importantly: The bidding process is neither an auction nor a type of auction!
The principle of "supply and demand"
The advertised minimum bid does not represent the seller's actual price expectation, but merely serves to encourage potential buyers to submit a purchase offer.
You can submit your bid to us in writing within a specified timeframe. However, submitted bids are not binding for either the seller or the bidder!
The seller or the client reserves the right to decide whether the highest bid meets their price expectations.
This is an important point, as it prevents the bidding process from becoming a "bargaining" or "auction".
Advantages for both sides: approximation to market price level
The bidding process benefits both sellers and buyers. For prospective buyers, the property search becomes easier, as they are not deterred by high prices. For buyers, this modern and contemporary form of bidding offers the unique opportunity to acquire their desired property at market price within a very short time and without lengthy negotiations. Unlike traditional property listings, no price is set in this bidding process. The interested party alone decides what bid to submit.
No auction or bidding!
At the end of the bidding process, there is no gavel falling or awarding of the bid, as in an auction. Here, the seller alone decides at the end of the bidding period whether to accept the highest bid, reject it, or use it as a basis for further negotiations.
The main advantage for sellers, in turn, is that they can reach significantly more potential buyers than usual. Therefore, they can also achieve a better selling price if several buyers are vying for the house.
This process also offers the advantage that neither party feels cheated. The buyer submits an offer they consider fair, and the seller can accept it if they also deem it fair.
Of course, you can discuss the offer, why the buyer is suggesting that price, or why it's not enough for the buyer. However, what's eliminated is the need for either side to justify the price – there's no need to haggle down or defend a pre-agreed price. You can establish your own fair basis for negotiation.
