Buying a house at auction: a practical guide in 4 points

Thinking of buying a house at auction? No, you don't need to be a lawyer or a legal expert, but a bit of preparation does help!
If the idea of landing a property at a great price appeals to you, here's everything you need to know to approach the auction with the right mix of awareness and boldness.

1. Why buy a house at auction?

Let's start with the good news: buying a house at auction can be a bargain. Here's why:

• 📌 Attractive price: auction houses usually cost less than on the traditional market.
  Do you know why?

  For 2 main reasons main reasons: first, because the auction value is based on the real value estimated by an expert, but also because, if there are no bids, the judge schedules a new auction and lowers the price by ¼.
  And if you're the only bidder? You could take it home at the starting price!

• 📌 Wide choice: large or small homes, in town or in the country. Just search the right portals, such as pvp.giustizia.it, astegiudiziarie.it or fallcoaste.it.
  There you'll find all the information you need, even if you spotted the listing on aggregator sites such as immobiliare.it or idealista.it.
• 📌 Smart investment: for example, you renovate and resell at a higher price. If you love DIY or property investment, it's an opportunity worth taking.

But don't be won over by the price alone! Read EVERYTHING there is to know about the property and follow our advice.

2. How can you tell if an auction house is a good deal? 💰

Before diving in, do your homework. Here's what to check:

• The Auction notice contains all the relevant information, including:

• • Date, time and place of the auction.
  • Starting price of the auction.
  • Minimum acceptable bid.
  • Any minimum bid increments.
  • Deposit required.
  • Conditions of participation.
• The Expert report: this is the document of truth. Here you'll find:

• • Floor plan (what the house is actually like).
  • Estimated market value.
  • Condition of the property (vacant or occupied).
  • Possible problems, such as unauthorised building work or non-compliance.

You can usually find these documents on the official site where the auction is advertised.

• Total costs: on top of the auction price, you need to consider:

1. • Registration costs, taxes and notary fees.
   • Any regularisation costs for non-compliant or unauthorised building work.
   • Possible costs of vacating the property (if occupied).

Finally, if possible, book a viewing: seeing it with your own eyes makes all the difference.
Contact the court-appointed custodian and arrange a visit. You might find that “sea view” is more of a “ring-road view”…

3. How to take part in the auction 👨🏼‍⚖️

Found the listing for your dream home? Great: now you need to check how the auction will be held and how to take part.
In general, auctions can be in person or online:

📍IN-PERSON AUCTION:
It takes place at a set physical location, usually at the court or at the office of the professional delegated to handle the sale.
Here's how it works:

1. Taking part
a) Pay the deposit (usually 10% of the starting price) by bank transfer or banker's draft.
b) Submit your application by the deadline in the notice and hand in to the court or the delegated professional:

• • Deposit receipt or banker's draft.
  • Application to take part with your personal details.
  • ID document and tax code.

c) Bring your documents: on the day of the auction, make sure you have a copy of the application and a valid ID document.

d) Registration: when you arrive, you'll be registered as a participant.

Once bidding has closed, the property is provisionally awarded to the highest bidder. Over the following days, the court or the delegated professional checks that all the paperwork is in order for the final award.

2. How the auction works

1. • The delegated professional opens the auction by reading the notice.
   • The property starts at the starting price and follows the minimum bid increment set out in the notice.
   • Bidders make their bids.

3. Provisional award

Once bidding has closed, the property is provisionally awarded to the highest bidder. Over the following days, the court or the delegated professional checks that all the paperwork is in order for the final award.

4. Balance and transfer of ownership

• • Pay the balance by the set deadline (usually 60-120 days).
  • Transfer order issued by the judge. The order transfers ownership, replacing the notarial deed, and cancels any mortgages or attachments on the property.

👨🏼‍💻ONLINE AUCTION:
It takes place entirely online through an authorised platform. Depending on how you take part, it can be asynchronous (no simultaneous participation, more common) or synchronous (simultaneous participation). Here are the steps:

1. Registration and preparation

• • Register on the online platform: create an account on the platform named in the notice and log in with SPID (Italian digital identity) or a digital signature.
  • Pay the deposit: by bank transfer to the IBAN given.
  • Upload the required documents:Fill in and submit the application online, uploading:
    
    • Deposit payment receipt.
    • ID document and tax code.
    • Valid contact details.

2. Taking part

• • Asynchronous auction:
    • You can bid within a set period (e.g. 3-5 days).
    • You can enter a maximum bid, which the platform will raise automatically up to your limit.
  • Synchronous auction:
    • It takes place in real time, with all participants connected online.
    • Bids must respect the minimum increments stated.
    • The property is awarded to the highest bidder after a period with no further bids.

3. Notice of award: you receive an email or a notification on the platform with the outcome of the auction.

4. Balance and transfer of ownership

• • Pay the balance: within the set deadlines, pay the balance and the taxes due.
  • Transfer order: the judge issues the order transferring ownership.
    The procedure is the same as for an in-person auction.

4. What if the house is occupied?

The scariest scenario: you buy the house and find… another tenant inside 😱

Don't worry! Right after the award, the judge orders the property to be vacated in the transfer order, which is also the legal basis for starting the procedure with the court bailiff 👮🏼‍♂️. It generally takes 60 to 120 days to vacate the property.

Practical tips

📌 Be prepared: auctions can be very competitive, and it's important to study the whole file so you know what to expect and can plan a strategy.

📌 Careful with bids: once you've made a bid, you can't withdraw it. If you win and don't pay the balance, say goodbye to your deposit!

📌 First time? A professional's help can be useful to avoid mistakes at the various stages of the procedure. Once you understand how it works, you can manage on your own too!

Good luck and happy bidding! 🏡