A property auction is a process in which a home is sold through a public bidding process, with the highest bidder purchasing the property. This can happen either involuntarily or voluntarily. The seller or mortgage lender sets a minimum price, and the auction is conducted through a notary or a specialized auction platform. In this article, we answer the most frequently asked questions about buying and selling a home through an auction.
What are the different types of property auctions in the Netherlands?
In the Netherlands, there are two main forms of property auctions: the forced auction and the voluntary auction. In a forced auction, the mortgage lender sells the property when the owner can no longer meet their payment obligations. In a voluntary auction, the owner chooses to sell the property through an auction process.
Forced auction
A forced auction, also known as a foreclosure auction, takes place at the initiative of the bank or mortgage lender. This occurs when a homeowner can no longer afford their mortgage payments and no other solution is possible. A notary oversees the process, and the proceeds go first to the creditors. In this case, the previous owner has little to no say in the sale process.
Voluntary auction
In a voluntary auction, the owner decides to offer the property at auction. This can be attractive if you want to sell quickly or if you expect competition between bidders to drive up the price. Voluntary auctions are conducted through specialized auction platforms or through a notary, and the owner retains more control over the terms.
How does the bidding process work at a property auction?
The bidding process at a property auction follows a set sequence of steps through a notary or a digital auction platform. Bidders can request a viewing in advance, after which they place a bid on auction day. The highest bidder wins the auction, but the sale is only finalized after approval by the selling party and payment of the required costs.
The process typically unfolds as follows:
- Announcement: The property is listed on an auction platform such as VBA (Veilingbiljet Amsterdam) or Opbod.nl, with the auction date and terms specified.
- Viewing: Interested parties can view the property, usually at one or two fixed times prior to the auction.
- Registration: Bidders must register and sometimes deposit a security payment before they are allowed to bid.
- Bidding process: On auction day, registered bidders place their bids, either in person at the notary’s office or digitally through a platform.
- Award: The highest bidder is awarded the property, after which the notary completes the sale.
Please note: in an auction, there are generally no contingencies. This means you cannot make the purchase conditional on financing or a structural survey, unless this is explicitly included in the auction terms.
What costs are involved in buying a property at auction?
When buying a property at auction, you pay additional costs on top of the purchase price. These include auction fees, notary fees, transfer tax, and sometimes a security deposit. These costs can add up and are often higher than with a regular purchase, which is something you need to factor into your budget in advance.
An overview of the most common cost items:
- Auction fees (auction commission): A percentage of the purchase price paid to the auction platform or the organizing party.
- Notary fees: The notary handles the transfer and charges fees for this service.
- Transfer tax: In 2026, first-time buyers meeting certain conditions pay no transfer tax; others pay either 2% or 10.4% depending on the situation.
- Security deposit or bank guarantee: You are often required to deposit 10% of the purchase price immediately after the award as security.
- Any outstanding charges: In forced auctions, there may be unpaid homeowners’ association fees or other debts attached to the property that the buyer takes on.
Make sure to read all auction terms carefully before placing a bid. Total costs can vary considerably from one auction to the next.
What are the risks of buying a property at auction?
Buying a property at auction carries more risks than a regular purchase. You have limited time for due diligence, there are usually no contingencies, and the condition of the property is not always fully known. This makes an auction purchase most suitable for experienced buyers who can accurately assess the risks involved.
The main risks are:
- No contingencies: You cannot withdraw from the purchase if financing falls through or if hidden defects are discovered.
- Limited viewing opportunities: You typically get only one or two chances to view the property, and a structural survey is rarely possible.
- Hidden defects: The selling party generally provides no guarantees about the condition of the property. Any defects become the buyer’s responsibility.
- Outstanding debts: In foreclosure auctions, there may be debts attached to the property that you take on as the buyer.
- Emotional bidding: The dynamics of an auction can lead you to bid more than you intended, which carries financial risks.
Make sure you are well informed in advance and set a maximum bid that you will not exceed, regardless of how competitive the bidding becomes.
Can a property also be sold voluntarily through an auction?
Yes, a property can also be sold voluntarily through an auction. This is a deliberate choice by the owner and differs fundamentally from a forced foreclosure auction. In a voluntary auction, the seller retains more control, can set a minimum price, and chooses the platform and auction date themselves.
Voluntarily selling a property through an auction may be worth considering in the following situations:
- You want to sell the property quickly without waiting a long time for a buyer.
- You expect multiple interested parties to bid against each other, driving up the price.
- You want certainty about a fixed sale date.
The downside is that an auction is less suitable if you want to achieve the maximum market value. With a regular sale through a real estate agent, you have more time to optimize the presentation and find the right buyer. That said, a voluntary auction can be an effective way to sell a property under the right circumstances.
When is buying a property at auction a good choice?
Buying a property at auction is a good choice if you are looking for a potentially lower purchase price, want to act quickly, and have a solid understanding of the associated risks. It is best suited for experienced buyers, investors, or those willing to conduct thorough research within a short timeframe.
An auction purchase may be right for you if:
- You have sufficient financial reserves to cover unexpected costs after the purchase.
- You have experience with real estate and know what to look for during a viewing.
- Your financing is already arranged before you bid, so you are not dependent on a contingency.
- You fully understand the auction terms and have reviewed them with a legal advisor.
Is this your first home, or do you have limited experience with real estate? In that case, a regular purchase through a buyer’s agent is generally safer and more straightforward. You will have more time for due diligence, contingencies, and professional guidance.
How we help you sell your home
Whether you opt for a regular sale or are considering listing your home at auction, thorough preparation makes all the difference. At Urban Homies, we guide you from start to finish in selling your home. We develop a detailed marketing strategy, carry out a professional valuation, and ensure a strong presentation with professional photography and a tailor-made listing.
What you can expect from us:
- An honest and well-founded valuation of your home
- Guidance on your sales strategy, including weighing auction sale against a regular sale
- Professional presentation and marketing of your home
- Support from the initial strategy meeting through to signing at the notary’s office
- After-sales care following the transfer
Want to know what the best approach is for your situation? Contact us and we will be happy to think it through with you, with no obligation.
