House in Steinen SZ auctioned off for 50,000 CHF: foreclosure creates bargains

A single-family house located right at the village square of Steinen (SZ) was auctioned in May 2023 for an astonishing 50,000 CHF, against an official valuation of 640,000 CHF. This forced sale achieved a discount of over 92% on the market value, demonstrating the great opportunities well-prepared bidders have in Switzerland.

1 Overview of the Property

Address: Dorfplatz 2, Steinen SZ, slightly set back in a central location.
Year Built & Type: Approximately 1950s, 65 m² living space above garage and storage areas, no outdoor space.
Special Features: Valid rental agreement until the end of 2027, which transferred to the highest bidder.
Mortgages: No mortgage liens, the buyer only had to pay the auction price.
Auction Fee: 1.5% fee from the foreclosure office plus land registry costs (Canton of Schwyz).

“Great astonishment... The house at Dorfplatz 2 was valued at 640,000 francs and sold for 50,000 francs.”

2 Why Only 50,000 CHF? An Analysis

Exclusive Rental Agreement: The apartment remains rented until at least the end of 2027, a deterrent for self-users.
No Garden, Renovation Backlog: The property offers neither outdoor space nor modern building technology and requires investments.
Low Number of Bidders: After an initial, more exciting auction for the neighboring house, there were only four people in the room, with just one making an actual bid.
Psychology of the “Second Object”: Those who have been outbid in the first round often hold back in the second, a well-known auction pattern.

3 Process and Legal Foundations

3.1 SchKG Procedure in Five Steps

Foreclosure Request by the creditor (Art. 67 ff. SchKG).
Seizure & Valuation here 640,000 CHF according to the foreclosure office.
Public Notice at least 4 weeks prior, in the official gazette & online.
Double Auction due to the rental agreement: first with, then (shorter notice period) with the rental agreement, the latter brought the only bid.
Auction & Down Payment 10% or up to 100,000 CHF required immediately (Art. 136 Abs. 2 SchKG).

3.2 What is the Double Auction?

In a double auction, property and encumbering rights (e.g., long-term rental agreements) are auctioned first with these rights and then without them, or with a shortened binding period. The bid is awarded based on the economically better overall result, ensuring optimal protection for both creditors and lower-ranked interested parties.

4 Chronology of the “Bargain Deal”

Date	Event
Spring 2023	Foreclosure Office Steinen publishes estimation & auction conditions.
May 25, 2023	Public auction in Steinen, only one bid (50,000 CHF), immediate award.
Summer 2023	Deadline for complaints passes, ownership transfer is recorded in the land register.
2024 - 2025	Buyer plans gentle renovations, rental relationship continues.

5 Economic Assessment

Barrier for Competitors: Rental binding reduced immediate benefit and thus interest.
Return Potential: Even with an additional renovation budget of 40,000 CHF, total expenses amount to 90,000 CHF. A rent of 1,200 CHF/month yields a gross annual return of 16%.
Comparative Values: In a similar location, properties in need of renovation in Schwyz cost an average of 8,000 CHF/m², here, the effective price is below 800 CHF/m².

6 Best-Practice Tips for Future Bidders

Monitor Auction Notices: Check official gazettes, ricardo.ch “Auction Calendar,” and cantonal platforms weekly.
Secure Budget & Down Payment: Bank approval or cash (up to 100,000 CHF) in accordance with Art. 136 SchKG before the auction.
Understand Contract Liabilities: Rental agreements, residential rights, and easements can be value brakes or price levers.
Use Double Auction to Your Advantage: If there are undesirable encumbrances, wait for the second auction, sometimes you will be the only bidder.

FAQ about Foreclosure in Steinen

Can anyone bid?
Yes, unless you are subject to the Lex Koller (applicable to foreign buyers without residency).

Do I have to assume the rental agreements?
Yes, as long as they are still valid at the time of the award. Termination is only possible at the statutory deadlines.

What is the risk?
With thorough due diligence (building substance, contaminated sites, easements) and reserves for renovations, the risk remains manageable, the low purchase price provides a significant buffer.

7 Learnings from Steinen

Timing + Preparation = Success: Those who come with a down payment, land register extracts, and property knowledge can achieve unexpected bargains due to a lack of competition.
Small Auctions, Big Opportunities: In rural municipalities, foreclosure sales can often fly under the radar.
Know the Rules: SchKG procedures, double auctions, and financing security are the tools of every successful bidder.

8 Conclusion

The spectacular award in Steinen proves: Swiss foreclosures are not a niche phenomenon for professionals, they also offer private individuals real opportunities to acquire property at a fraction of its market value. Those who internalize the procedures, deadlines, and financial rules can create win-win situations from seemingly distress sales for themselves and the creditors, all without negative implications for legal certainty.