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Understanding the Minimum Bid Increment in Real Estate Auctions

The Guide for Those Looking to Purchase a Home or Property for Their Business

author: Internal Editorial Team
16-10-2025
3 mins to read

A key parameter to understand in order to approach a real estate auction with awareness and plan your budget effectively.

Buying a home at auction, or investing in a property for your business, represents a concrete opportunity for many individuals and companies. However, to participate with full understanding, it is essential to grasp the rules that govern judicial and real estate auctions. One of these rules is the minimum bid increment, which directly affects the final price and overall bidding strategy.

What is the minimum bid increment in real estate auctions

The minimum bid increment is the mandatory increase that each new offer must include to be considered valid. It is not merely a technicality—when dealing with real estate, where values are high, it can amount to thousands of euros per bid.

A practical example could be as follows: suppose a property listed for auction has a starting price of €120,000 and a minimum bid increment of €2,500. Anyone wishing to place a higher bid must add at least €2,500 more, meaning the next valid offer would be €122,500. This mechanism regulates the progress of the auction and ensures a clear and orderly progression of bids.

Why it’s important to understand it

Anyone participating in online real estate auctions—whether to buy a first home, a second property, or an industrial building for their business—needs to be familiar with the minimum bid increment because it:

Affects the actual budget: a property that initially seems affordable can quickly exceed one’s financial capacity after only a few bid increments;
Determines the bidding strategy: for example, opting for a proxy bid changes how the competition is managed;
Helps assess convenience: if the minimum bid increment is high, the auction concludes more quickly but with larger price jumps.

Minimum bid increment and budget management

One of the greatest challenges for participants is accurately calculating the overall budget. In addition to the starting price and bid increments, it is important to consider: the initial deposit, commissions, VAT and taxes, and any additional expenses (e.g. outstanding condominium fees). Knowing the minimum bid increment helps plan in advance how far you can go, avoiding unpleasant surprises in crucial phases of the auction.

Minimum bid increment and transparency

The minimum bid increment also serves as a guarantee for participants in online real estate auctions, providing a clear and precise regulatory framework. This is a key factor in making real estate auctions a reliable and competitive purchasing method.

For anyone buying a property at auction—whether for personal use or business purposes—understanding the minimum bid increment is essential. It means not only complying with a technical rule, but also planning your expenditure, setting effective strategies, and approaching the auction process with greater confidence and security.

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