Market value vs. surcharge: How much do buyers really save on foreclosure auctions?

Forced auctions are among the few markets where properties are systematically traded below their official market value. But how significant is this price advantage in 2024? An evaluation of the Market Reports 2021-2024 by Local Auction reveals: The legal mechanism already ensures that bids in the first round usually start at 70-80% of the market value, and in the second round, they can theoretically fall without any lower limit. In practice, this results in double-digit percentage discounts, especially in high-priced cantons like Zurich (ZH) or Vaud (VD), totaling quickly into hundreds of thousands of francs.

1 | What do the data say?

1.1 Overall Market 2021 - 2023

904 million CHF market value volume from 854 auctions in the record year 2021.
744 million CHF volume from 622 appointments in 2022 (-18% year-over-year).
≈ 760 million CHF and 644 properties in 2023, the level has stabilized post-COVID.

"The two halves of 2022 are practically on par, an indication that the market has normalized after the COVID catch-up effect in 2021." - Market Report 2022

1.2 Average Values by Property Type

Property Type	Average Market Value 2021	Average Market Value 2022	Theoretical Starting Price* (70%)
Residential House	1,025,000 CHF	903,000 CHF	≈ 632,000 CHF
Condominium	758,000 CHF	674,000 CHF	≈ 472,000 CHF
Multi-family House	2,424,000 CHF	8,960,000 CHF	≈ 6,270,000 CHF

*Starting price ≈ 1st round × 70%. Legally, the lower limit is between 70% and 80% of the market value (Art. 130a SchKG), and in a second round it is completely eliminated.

2 | How the Discount is Created

Official Valuation (Market Value): The enforcement office commissions an independent appraiser.
First Call: Bids must reach at least 70-80% of the market value, otherwise the property remains "available".
Second Call: If the first round fails, there is no longer any lower limit. Here, buyers realize the largest discounts.

Practical Example Zurich

A residential house with a market value of 1 million CHF in ZH can thus already be awarded for 700,000 CHF. In 2021, the average market value of residential houses in Zurich was 1.75 million CHF, each percentage discount corresponds to approximately 17,500 CHF.

3 | Regional Bargain Hotspots 2024

Ticino: Highest case count (41.3 forced auctions per 100,000 inhabitants in 2022) and thus a large selection.
Valais & Vaud: Solid property numbers, but market values sometimes below the national average, ideal for beginners.
Glarus: Small canton, but second highest rate (27.2 cases per 100,000 inhabitants), and thus little bidder competition.

4 | Five Tips to Secure Your Desired Price

1 | Question the Market Value Critically

Check the year of construction, renovations, and micro-location, especially older appraisals may have hidden reserves.

2 | Anticipate the Second Call

Monitor properties that received no bids in the first session, often, the biggest discounts are realized in the subsequent round.

3 | Secure Financing Before the Auction

The final price is due within 20 days. An irrevocable bank payment guarantee gives you a tactical advantage.

4 | Establish a Bidding Strategy

Set a Walk-Away-Limit (e.g., 85% of market value). Emotionless discipline saves money.

5 | Factor in Additional Costs

Craftsman reserves, fees, and transfer taxes can often reduce the discount by another 5-7%.

Conclusion

The difference between market value and final bid is not a marketing but a structural advantage of the Swiss auction system. Those who know the rules of the game can often purchase in top regions for 15-30% below market price without the uncertainty of an off-market deal. Thanks to the more transparent data situation since 2021, this advantage can now be quantified for the first time, clearly showing: Forced auctions remain, even in 2024, the fastest way to secure property discounts.