Should you purchase property in Europe at auction in 2023, and 2024? And if so, is there a region of Europe with particularly promising deals? With objective, concise information about judicial auctions in Italy and around Europe, this short article seeks to address both of these inquiries.
Why it’s appealing to purchase a home at auction
Purchasing property at auction can result in a great deal. It goes without saying that purchasing a home or estate for a reasonable cost —often for less than its true value, is an exciting prospect for astute long-term investors. It can also be a fantastic opportunity for house flipping, which is purchasing a home—even a dilapidated one, like a farmhouse in Tuscany at a judicial auction—improving it to raise its worth, and then reselling it to make a profitable deal.
Legal auctions: the fundamentals
Investing in real estate can be a profitable investment, one needs to understand how real estate auctions system in Italy works. So let’s examine what judicial auctions are, beginning with the process of putting up property for sale. After a seizure, real estate assets are typically auctioned off. Seizures happen when the person in control, or creditor, secures a piece of property to pay off a debt. Every EU nation has its own national laws related to auctions. Let’s say for example Italy’s laws and regulations on property auctions (Aste Immobiliari) differ from those of other nations.
Home auctions in Italy
This is an ongoing trend for the recent years. Italian real estate auctions currently seem to provide some of the most lucrative and generally fascinating investment options, as well as the most readily available and simple procedures, in Europe. According to recent surveys and analysis of the Italian real estate market, buying a house at auction might result in savings of up to 30% or even 40% compared to the asset’s actual value. This makes Italy an intriguing location for real estate auctions, along with the never-ending attraction of Italian cities, villages, and vacation spots.
Home Auctions in Italy in 2021: some geographical data
Here below you can find a synthetic table about the total amount of homes sold in auction in Italy during 2021.
|Region||Percentage sold in auction||Districts|
Aste Immobiliari in Sardinia
Do you want an example? Sardinia during 2021-2022 is among the regions in Italy where the real estate market has been most in turmoil. What will be in the next future, considering real estate deals in 2023-2024? One example was the many houses sold at auction: the provinces of Sassari and South Sardinia lead the list of areas with the most houses at auction. This was followed by Cagliari, Nuoro and Oristano.
All the more so if one decides to find a good deal for a Tuscan villa, for instance, via an Italian property auction. Currently, several intriguing auction opportunities discerning buyers may want to look into. A prestigious historical palace with a private garden in Pistoia, one of Tuscany’s most exquisite smaller cities, for instance, is up for auction for just over 1 million, 140 thousand euros. Or an extensive villa in the vicinity of Pisa, up for auction at a starting price of just slightly over 1 million, 400 thousand euros. Prospective buyers may see a video and photos of the latter on this advertising page, or check for more opportunities, both in Tuscany and elsewhere in Italy, in the dedicated section of the official Ministry of Justice website.
Italian judicial auction types
Vendita con incanto and Vendita senza incanto are the two types of property auctions allowed by current Italian law.
What is a Vendita without Incanto
A vendita senza incanto suggests that participants seal their bids in envelopes and make them unavailable to others for a set amount of time. The responsible authorities then open the envelopes to check that the bids adhere to the specifications. If not, a fresh public auction is scheduled to be place.
What is a Vendita with Incanto
A public, open auction with no implied minimum beginning price for the item up for bid is known as a vendita with incanto. On a predetermined, public auction day, the auctioned property will be given to the highest bidder. The highest bid received on the specified date will only be accepted provisionally, as per Italian property auction law, which stipulates that bids will be accepted for 10 days following the date of the public auction if they exceed the winning bid by at least one-fifth. If this occurs, the auction will be restarted, but this time it will only be open to those who attended the previous session.
Payments and deposits
Normally, 10% of the minimum price is required as a deposit from each bidder, which they receive back if they are not “successful” on the auction day. The “successful bidder,” who placed the winning bid, must pay the whole amount owed within 120 days of the auction’s conclusion. The property is transferred to the new owner once the outstanding balance has been paid, and the relevant legal body issues an enforceable decree of transfer.