Bidding process for real estate in Switzerland
The bidding process differs from the classic property sale. Comparis shows how the procedure works and gives helpful tips.
03.12.2025
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1. How does the bidding process work for real estate?
The bidding process is a procedure for selling property. There is no fixed price for the property. Instead, potential buyers place bids. This allows the seller to achieve the best market price for their property.
The seller does not have to specify a minimum price. They also do not have to accept the highest bid. In contrast to auctions, prospective buyers can also withdraw their bid.
Good to know: as a rule, a reference to the bidding process is placed in the property listing. At the latest during the viewing, you should know – or ask – how the sale works.
2. Bidding process when buying a house: what does the process look like?
A bidding process differs from the classic property sale. The procedure is usually as follows:
Preparation of the dossier
Viewing
Several bidding rounds
Signing of the contract and administrative matters
You can read about the exact steps of the bidding process here:
To prepare for the sale, you as the seller should include all important information about the property in a dossier. These include:
Floor plans
Photos
Expert opinion, if available
Use this to create meaningful sales documentation for the property and advertise the property.
Make a reference to the bidding process in the listing. You don’t have to specify a minimum price. However, bear in mind that a price can be very helpful as a guide for prospective buyers. For this, you can use the market value of the property. You can calculate this quickly and free of charge online.
Good to know
A target price that is too high can deter interested parties and slow down the bidding process. It is therefore advisable to set the target price slightly below the market value, in order to attract enough bidders and stimulate competition.
Would you like tohold a group viewing? Then enter thedate in the dossier.
The property viewing is central to all parties. In our checklist for property viewings you will find all the details for the preparation.
As a rule, there are two to four rounds of bidding two to four rounds. You should determine and communicate the exact number of bidding rounds from the outset.
Prospective buyers submit an initial bid in the first round. They usually have two to three weeks to do so. In the second round, the bidders will be informed of the current highest bid and can submit a new bid if necessary. Bids should always be accompanied by a financing confirmation from the bank.
At the end of the bidding rounds, the seller can decide on an offer. Cancellations usually only follow after the purchase contract has been signed. The reason for this is that the signing of the contract can also fail.
Has the bidding process been completed? Then the usual final steps in selling a property follow. Draw up a purchase contract with the notary and transfer the property by means of a land register entry to the new ownership.
3. When is a bidding process worthwhile for property sellers?
In principle, a bidding process is recommended only if there are many financially strong prospective buyers. Due to the competitive pressure, the selling price could be higher than the market value of the property.
In short: if the current situation on the property market is good, a bidding process makes sense. A good market situation exists when there are more financially strong interested parties than suitable properties.
The procedure can be particularly worthwhile for:
building plots or properties in a good location
properties that match the taste of the general public
4. What are the advantages and disadvantages of the bidding process?
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5. Bidding process: tactics for buyers
Are you interested in a property that is being sold via the bidding process? Then the following tips can help you:
Pay attention to transparency: reputable bidding processes are transparent and well structured. There should be clear information on the process and the timeframe. If this is not the case, it is better to steer clear.
Consult experts: if necessary, get support from an estate agent or a bank. This reduces the risk of paying too high a price.
React quickly: organise the financing confirmation at an early stage. This allows you to quickly place a first bid.
Show enthusiasm: the highest bid does not always win. In many cases, likeability has a great influence on the decision. Have you found your dream home in the property for sale? Then show it!
Keep a cool head: set a budget with an expert. Stick to it, even if the pressure can lead to emotional decisions.
6. Bidding process: How much more is it worth for buyers to bid?
Basically, only bid as much more as you can really afford. With the Comparis mortgage calculator, you can easily calculate the affordability of the mortgage. This allows you to set your upper limit.
As a rule of thumb: often 3 to 7% above the target price is realistic if the property is in very good condition.
7. Bidding process: frequently asked questions
In a private bidding process, a private individual(or, for example, a community of heirs) sells their own property. The private seller invites interested parties to submit bids for the property instead of specifying a fixed selling price.
A classic bidding process thrives on the fact that no fixed selling price is specified, but bids are freely submitted. In practice, sellers sometimes communicate a guide price. This value serves as an indication. Interested parties can still submit higher (or sometimes lower) bids.
But as soon as the price is really fixed and cannot be outbid, it is in fact no longer a bidding process.
In a two-stage bidding process, there are two clearly separated bidding rounds.
In the first round all interested parties submit an initial bid within a period of time within a set period.
The seller then sees approximately where the bids lie. They inform the selected interested parties and invite them to a second, final round.
In the second round the selected interested parties can improve their offer once only. The seller then decides to whom they want to sell the property.
A bid in the bidding process is usually not legally binding. Neither the buyer is obliged to actually buy the house, nor does the seller have to accept the highest bid. Only with the notarial certification and the subsequent entry in the land register does a binding obligation to transfer ownership arise.
Despite the lack of legal obligation, you should only submit a bid if you are seriously planning to finance and purchase the property.
This article was first published on 17.06.2021
