Through a systematic analysis of the largest residential real estate transactions that have taken place in Germany during the past decade (of size greater than 50,000 units), the relevant criteria are to be derived for evaluating the stock in the course of due-diligence analyses. The challenge to be overcome lies in the fact that the housing stock (the assets for sale) is oftentimes very heterogeneous (varying widely in year of construction, type of building, apartment size, number of rooms per apartment, etc.) and that the stock is often located in different cities and regions. At the same time, in the case of such large-scale transactions, an analysis of each individual building would not be feasible for cost reasons. Additionally, the slim timeframe allotted to the valuation of the units and the assessment of the potentials for privatization (privatization of the second order, i.e. tenant privatization) in structured bidding processes requires that decisions are based on approximations of the values of apartments. By generalizing the criteria relevant to the analysis of privatization potentials, valuation methods can be developed to guide future transactions involving large portfolios (First-order privatization, privatization of formerly public-utility companies / Privatization of public property). At present, the public authorities still own more than 3 million housing units in Germany.