REAL ESTATE AUCTIONS IN GENEVA: TIPS FOR A SUCCESSFUL PROJECT

To find good deals on the Swiss real estate market, particularly in Geneva, it can sometimes be worth turning to auctions.

Every week, this acquisition method allows numerous people to become homeowners across Switzerland. But how exactly does it work? And how can you make the most of a real estate auction in Geneva? Discover the advice of Nessell, your leading real estate agency for projects in Geneva.

Real Estate Auctions: Just Another Way to Acquire a Property in Geneva

In Geneva, many properties are regularly sold at auction. There can be many reasons behind this. Most often, these are forced sales compelling owners in bankruptcy to part with their property. At other times, they result from legal debt enforcement proceedings initiated by banks to allow them to fully recover their claims. But a real estate auction is not always initiated by a bank.

You can also take part in voluntary auctions, or calls for tender. Owners may decide of their own accord to put their property up for auction. You can then submit a bid, which does not commit you in any way. The property is awarded to the bidder who offered the best price. This method sometimes optimizes the sellers' capital gain.

Finding a property through an auction does not necessarily guarantee you will buy it at a lower price. The starting price is usually equal to the total amount of the mortgage notes required by the bank from which the owner took out a property loan when buying it. But the price will also depend on the supply/demand ratio at the time of the sale.

A quality property located in a sought-after area will inevitably be expensive, even at auction. In less popular areas, it is possible to acquire a property for up to 30% less than its initial value.

Acquiring a Property at Auction: How to Proceed?

Interested in finding your new property through an auction? Start by assessing your financial capacity. What budget do you have for this project? How much can you borrow? Then take a look at the websites of the Geneva cantonal debt enforcement and bankruptcy offices. You can also check the municipality's official gazette (FAO) to find a potential property.

Then get in touch with your banker to obtain financing approval by indicating the estimated price of the property in question. Written confirmation from the bank stating the maximum loan amount you will be granted for your purchase is essential. Also find out about all the auction conditions and everything related to the property. Take the time to check the land register to make sure there are no charges on the property and that you can make full use of it.

A viewing of the property is generally offered to interested parties before the auction. Ideally, you should be accompanied by a local expert, able to detect defects and hidden flaws in the property. No warranty is offered in an auction.

Your expert will already be able to estimate the price of the property. This prevents you from paying above its actual value. Your bidding limit will be equal to the estimate plus your personal contribution.

Real Estate Auction: Property Awarded!

Real estate auctions are held in an auction room at the Geneva debt enforcement office. The auction is won by whoever offers the highest price. If you have never taken part in an auction, it is recommended that you first attend a session as an observer. This will give you the chance to assess the strategies used by other bidders.

Have you won the award for the property you were interested in? Once the sale is complete, you must immediately pay a deposit of 10 to 20% of its estimated value, either by check or in cash. You can already obtain the keys once the administrative auction paperwork has been signed. A 10-day objection period is normally observed before your name is registered in the land register. You are required to settle the balance of the sale within two months.

Other options exist if you wish to buy a property. Discover our new-build properties in Geneva listings, for example.