DEUTSCHE GRUNDSTÜCKSAUKTIONEN AG
- Organisation of live auctions where properties of all types are auctioned
- Market leader for private real estate auctions in Germany
- A large part of the business involves residential and commercial real estate in Berlin and the newly-formed German states
- Vendors: private owners, public authorities, the Federal Republic of Germany and its institutions, banks, curators of estates, insolvency administrators, housing associations
- Commissions based on the auction sales price become due for the Seller and the Purchaser
- Nationwide presence with four regional subsidiary companies
- Successful, permanent online auctions
- At the moment in total 96 employees
The principal risk that can by no means be influenced by the company is a change in the current market situation - whether it is on a macroeconomic level or on the sectoral level of the real estate market.
Many owners still have the pressure to sell, which increases the chances that a property is offered for auction sale. The public clients are under the constraint to prevent further debts of the public budgets and to sell assets instead. Overall, a dependency from single major clients does not exist due to the large number of individual clients.
The success of an auction depends on the negotiation of a reserve price with the Seller that is not too high. The properties on offer are evaluated by an evaluation panel of experienced employees and auctioneers. The objective of the internal control mechanism is to keep the number of properties that have a reserve price that is too high to a minimum. The quota of unsold properties has been kept low with this system. The quota of unsold properties of the whole group was most recently merely 12.4 percent.
The demand for real estate has increased noticeably. The basis for further increase in turnover is the high publicity with approx. 200,000 readers of the auction catalogue (print version + catalogue downloads). The particular risks of a low acceptance of the marketing of real estate by private auctions is met by the company with consistent public relations work and the specific information of potential vendors (and also buyers) about the special market opportunities.
A framework agreement has been in place with the Federal Republic of Germany and its representative, the Bundesanstalt für Immobilienaufgaben (Federal Office for Real Estate Management), since 2003. So far we have sold more than 7,500 properties for more than EUR 185 million for the Federal Republic of Germany and its institutions.