Often, when browsing through property advertisements, one comes across a suggestion that immediately catches one's eye: a house that meets one's needs, presented at a price below market values. An offer that seems too good to be true. Yet, it is really genuine, often coming from a judicial sale. At this point, the question arises: could buying a property at auction be the opportunity you are looking for in the real estate market?
Auction is a procedure through which the court sells a property, usually to meet the debts of the insolvent owner. This means that real estate can be accessed at particularly competitive prices, but also that the purchase follows very specific and regulated procedures. Many buyers see the auction as a way not only to save money, but also to make a profitable investment. At the same time, however, the process can raise questions and concerns, such as: ‘How can I participate? What guarantees do I have? Do I have to dispose of the entire sum immediately or can I access a mortgage?’
This is where our agency comes in, with specialised advisors and the experience to guide you every step of the way. It's not just a matter of understanding the mechanisms of the auction, but of being accompanied by those who can anticipate difficulties and help you evaluate every aspect, from the bidding to the adjudication and the actual acquisition of the property.
In this article, we will explore each stage of buying at auction and explain the differences between the types of auction, the procedures to follow, the guarantees that the buyer can obtain, and the reasons why this type of purchase can be an ideal solution for those looking for a home or wishing to make an investment. With EDILFIN at your side, you will have the experience and support you need to tackle each stage with security and peace of mind.
A judicial auction is a legal procedure of forced sale of an asset, usually as a result of outstanding debts of the owner. When the owner (who may be a private individual or a company) is unable to pay their debts, the court may order the sale of their assets, including real estate, to reimburse creditors.
EDILFIN supports you in interpreting each step of the process and helps you understand the objectives of the auction sale, i.e. realising the best price to repay the owner's debts, with an opportunity for you to win a property on favourable terms.
One of the main advantages is the price: on average, the base auction price in Italy is 55% lower than market values. This does not necessarily mean that the property is sold at such a discount, but since the auction base is lower than average market prices, you can manage to buy the property at a considerable saving.
Luck plays an important role: the amount of properties at auction varies from region to region, and some auctions are less publicised than others, which may offer unmissable opportunities in certain areas. But beware, in some cases, if the property is particularly rare and hard to find on the traditional market, the auction price may come close to the market value.
Furthermore, the time of access to the property is a factor to be considered. Compared to the traditional market, the timeframe can be longer: one has to wait for the day set for the auction and, once it has been won, meet the deadline for eviction if the previous owner or any tenants still occupy the property.
For this reason, buying at auction is ideal for those who are not in a hurry to get into the house or for those considering this option for investment purposes.
The key to a good auction investment is strategy and preparation. With an expert by your side, you will be able to learn about all available auctions in your area of interest, identify the best opportunities and develop a winning strategy. If you are looking for safe guidance in these phases, EDILFIN assists you in managing time and procedures, providing peace of mind and ongoing support.
There are two types of judicial auctions, each with specific characteristics.
Silent auction (senza incanto): This is the most common type. When participating in an auction without auction, the rules for participation are established and the auction deadline is set. Participants submit a sealed bid, which can be either paper or electronic, and the amount must be at least equal to the minimum price. If there is only one participant, they could win the property at the offered price, but it's important to know that if the creditor has requested the assignment of the property, the judge may directly assign it to the creditor, unless the offer amount reaches at least the base price of the auction. In this case, the award is final.
Public auction: This occurs when there are multiple participants and involves a bidding process, with a minimum bid increase starting from the highest offer received. The award is initially provisional, and for 10 days, participants can make an improved offer that is 10% higher than the awarded price (in this case, a further auction would be held between the two competitors to determine the final winner). Therefore, the 10-day waiting period is necessary before it can be considered final.
It is important to understand the difference between these two types of auctions, even though currently 95% of all auctions held are SILENT auction.
Participating in a real estate auction involves several key steps:
Property Research: Utilizing online platforms, it is now easy to find auctioned properties, complete with detailed photographs, descriptions, and expert appraisals.
Monitoring the Auction Date: The auction date, set by the court, must be closely monitored to ensure participation. The auction is typically held online, and missing the scheduled date means losing the opportunity to bid.
Submitting the Bid: The bid must be submitted through the Public Sales Portal's online form, accompanied by the deposit payment (10% of the offer amount). In the case of traditional auctions, the bid is submitted in a sealed envelope, along with a certified check for the deposit.
Auction Participation: On the designated date and time, the auction is held, either remotely or in person. If only one participant submits a bid, the property is awarded without further bidding. If there are multiple participants, a competitive bidding process is initiated, with minimum bid increments specified in the auction notice.
Purchasing a property at auction raises many questions. Here are some answers to clarify the most frequently asked concerns:
Where can I find auction properties?
The Public Sales Portal, managed by the Ministry of Justice, lists all auctions, including authorized platforms such as www.aste.immobiliare.it. You can also find all available auctions in the Lake Garda area on our website www.edilfin.com.
Can I participate without assistance?
Yes, it is possible to participate independently. However, relying on experts helps you manage the legal and bureaucratic procedures with greater confidence and security.
Is immediate liquidity required?
No, you can obtain a mortgage for an auctioned property. Some banks offer specific products for this type of purchase, even covering the 10% deposit. It should be noted that not all banks are willing to grant mortgages for auction properties, but some are favorable. Of course, the property must not have significant legal issues or violations, and the buyer must meet all requirements for the loan.
Is the purchase "blind"?
Absolutely not. The court-appointed custodian ensures property viewings and provides a full appraisal, offering you information on every aspect, from condominium debts to the occupancy status.
EDILFIN collaborates with professionals to ensure transparency and clarity regarding all property details. This way, you can make an informed and secure purchase.
Purchasing a property at auction may seem complex, but with EDILFIN by your side, every stage will be managed with professionalism and expertise. We offer comprehensive support that will guide you through the entire process: pre-auction, during the auction, and post-auction.
The pre-auction phase is crucial for thorough preparation. Our goal is to help you identify the best opportunities and get ready for the purchase.
What we do for you:
During the auction, our goal is to provide all the support you need to participate without worries. We assist you every step of the way, whether in physical or online auctions.
What we do for you:
Once the property is awarded, we handle all final procedures, ensuring a stress-free experience until you receive the keys to your new home.
What we do for you:
Purchasing a property at auction is an opportunity that can be extremely beneficial, but it can also be complex without the right preparation. With our method, you will have access to a comprehensive service and the support you need at every stage of the process, from the initial search to the delivery of the keys, ensuring the best possible experience.
If you would like more details on how to approach purchasing a property at auction and receive personalized advice, visit our dedicated page or contact our expert consultant.