Foreclosure explained: This is how a real estate auction in Switzerland works

From the Debt Collection Office to Award: The Process in 12 Steps

1. Debt Collection & Seizure/Real Estate Evaluation: The creditor initiates the debt collection; for secured claims, the property is evaluated. The debt collection office conducts the procedure.
2. Valuation & Market Value: An expert determines the market value (official reference). It is not a minimum price but serves as guidance for bidders.
3. Publication: Date, property details, and auction conditions are published on the debt collection office's website or in the SHAB. This leads to deadlines for file inspection, viewing, and security deposit.
4. Review Dossier: Extract from the land register, list of encumbrances, valuation report, rental or usage contracts, any easements. Clarify unclear points with the office.
5. Viewing: Individual or group appointments. Check the condition (envelope/building technology), energy, zoning situation, and any occupations.
6. Security Deposit: Usually a cash deposit/bank guarantee according to auction conditions; amount, deadline, and form vary by canton/property. Provide proof in a timely manner.
7. Approval: Identification, proof of the security deposit, any authorizations. A bidder number is assigned.
8. Auction: Call, bidding steps according to conditions, interjections. In case of disagreement, the auctioneer decides.
9. Award: The highest bid receives the award. The contract is concluded under public law; revocation is excluded, except in legally provided cases.
10. Payment & Costs: Deposit according to conditions, final payment within the deadline. Published encumbrances/charges must be assumed; non-assignable claims will be covered from the proceeds.
11. Transfer of Ownership: Registration in the land register; rights/risks transfer according to conditions. Eviction/takeover of rental agreements is governed by the Swiss Civil Code/Commercial Code and debt collection law.
12. Post-Processing: Change insurance, report meter readings, implement capex and upgrade plans.

Timing & Market Logic: When Do Most Auctions Take Place?

The auction calendar shows regular waves. In 2024, most new appointments are set for June (75) and October (62); quieter are July (19) and August (29). In 2023, the peaks were in March (79) and June (79). Those who finalize due diligence and financing by spring have the best chances in the peak months.

What’s Up for Auction? The Most Common Types of Properties

Residential uses dominate consistently. In 2024, residential houses (256) and condominiums (204) together accounted for around 75% of all procedures. Their share was similarly high in 2021–2023. For buyers, this means: the best data density and benchmarks in these categories.

Overview of Bid Sizes

• Villas are the most expensive category (average 2024: ~3.92 million CHF; 2023: ~5.1 million CHF).
• Residential/commercial buildings and multifamily homes are generally in the seven-figure range.
• Residential houses and condominiums make up the broad middle of the market.

For bidding logic, the individual case (condition, location, legal situation) counts – average values serve as a starting point, not as a target price.

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Bidding Discipline: Two Simple Models for Achieving a Fair Price

// Asset Holder (Cashflow-driven)
MaxBid = NOI / Target-CapRate
         - (immediate Capex + transaction costs)
         - safety margin

// Developer (Residual Value)
Land/Property Value ≈ Sale Proceeds (after renovation/project)
                  – (construction/renovation costs + ancillary costs)
                  – (margin + risk premium)

Tip: In cantons with a high number of cases, comparison values are denser – ideal for realistically calibrating the target cap rate.

Regional Orientation: Where the Search is Worthwhile

• Deal-Flow Clusters: TI, VD, BE, VS, SO – consistently many appointments, wide price range. [oai_citation:0‡Market Report-CH-2024_final-1.pdf](file-service://file-2yDbZ1FZEzN78WqWgPAhv5)
• Per-Capita Active: TI, JU, VS, SO, GL – higher hit rate per observed dossier. [oai_citation:1‡Market Report-CH-2024_final-1.pdf](file-service://file-2yDbZ1FZEzN78WqWgPAhv5)
• Premium/Core: ZH, GE, ZG, SZ, LU – fewer lots, but high value retention. [oai_citation:2‡Market Report-CH-2023-final.pdf](file-service://file-Tv8vuLu7owUuuYShBzDcRd)

Practical Playbook by Canton Profile

Cluster	Cantons (A–Z)	Advantage	Strategy
Pipeline	BE, TI, VD, VS, SO	Many comparison cases	Several dossiers in parallel; standard due diligence
Per-Capita	GL, JU, SO, TI	Smaller bidder fields	Quick decisions, strict max bid
Premium	GE, LU, SZ, ZG, ZH	High exit liquidity	Selectively bidding, incorporating ESG/design value add

Note: Rankings fluctuate slightly from year to year; the above patterns are stable over 2021–2024.

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Checklist: What Should Be Done Before the Bidding Day

• Dossier Complete: Land register/encumbrances, valuation, rental/usage contracts, building permits.
• Legal Situation: Easements, rights of first refusal, takeover of rental agreements, any occupations.
• Security Deposit: Amount, deadline, permissible forms; bank confirmation in a timely manner.
• Financing: Term sheet/credit decision; payout dates align with payment deadlines.
• Capex Plan: Immediate measures (safety, building envelope, building technology) and 24-month plan.
• MaxBid: Document in writing (models above) – do not exceed at the auction table.

FAQ: Common Misunderstandings in the Auction Process

• “Market value = price?” No. It is the official estimate – the award can be below/above this.
• “Immediate possession with award?” Ownership transfers with the registration in the land register; use/eviction follows the conditions and debt collection law.
• “All costs included in the award price?” No. Published, assignable encumbrances/charges may need to be paid in addition.

Canton Quicklinks (all 26)

AG · AI · AR · BE · BL · BS · FR · GE · GL · GR · JU · LU · NE · NW · OW · SG · SH · SO · SZ · TG · TI · UR · VD · VS · ZG · ZH

“Success in forced auctions is no accident: Those who master file situation, timing, and bidding discipline buy closer to the value and significantly increase their chances of winning the award.”