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Buying a home at auction represents an interesting combination of tradition and innovation in the Italian real estate market. Once considered a path for a few experts, auctions are now increasingly accessible thanks to digitalization, attracting a broad and diverse audience. This method of buying and selling, rooted in the judicial system for debt resolution, offers the opportunity to purchase properties at competitive prices, often below market value. The evolution towards online platforms has further expanded the possibilities, allowing participation from anywhere and making the process more transparent and less intimidating. Understanding how to participate and how to finance the purchase is the first step in turning an opportunity into a concrete and secure investment.
This article explores the world of real estate auctions in Italy in detail, a sector that, despite a decline in the number of proceedings, shows growing maturity and appeal. We will analyze how the market works, how to find and evaluate a property, the practical steps for participation, and the solutions for obtaining a mortgage. The goal is to provide a clear and comprehensive guide, suitable for both those approaching this world for the first time and those looking to refine their strategy, balancing the significant advantages with mindful risk management.
The real estate auction market in Italy is undergoing a profound transformation, driven by technology and new economic dynamics. Although the total number of auctions has shown a decline in recent years, with about 121,000 proceedings in 2024, the sector demonstrates remarkable resilience. Data indicate a stabilization of average prices, especially in the residential sector, and increasing digitalization: online auctions have become the predominant model, accounting for almost half of the total and making the process more accessible and transparent. This evolution, which began in 2020, has expanded the pool of potential buyers, overcoming geographical barriers.
Judicial auctions primarily arise from enforcement proceedings such as foreclosures or from corporate bankruptcies, with the aim of liquidating assets to satisfy creditors. Lombardy, Sicily, and Lazio are the regions with the highest number of lots, while Rome remains the province with the most published auctions. An interesting fact is the increase in judicial liquidation proceedings, introduced by the new code of business crisis, which signals a more structured approach to managing insolvencies. This scenario, which combines legal tradition and digital innovation, offers significant opportunities for those looking for a home or an investment, provided they thoroughly understand the rules.
The first step for anyone wanting to venture into the world of auctions is knowing where to look for opportunities. The most important institutional resource is the Public Sales Portal (Portale delle Vendite Pubbliche – PVP), a website managed by the Ministry of Justice where the publication of all sale notices related to enforcement and insolvency proceedings is mandatory. This portal ensures maximum transparency and allows for filtered searches by property type, location, and price, as well as providing access to all official documentation. In addition to the PVP, there are numerous specialized websites authorized by the Ministry that republish the listings, often offering more intuitive interfaces and support services.
Once a property of interest has been identified, it is crucial to carefully analyze the documentation attached to the notice of sale. The two fundamental documents are the sale order and the appraisal report. The former establishes the auction rules: starting price, minimum bid, deadlines for the deposit, and the date of the auction. The appraisal, prepared by a court-appointed technician, is even more important: it describes the property’s factual and legal status, its compliance with urban planning and land registry regulations, the presence of any remediable building code violations, and its occupancy status. Reading these documents carefully is essential to avoid surprises, and if necessary, it is advisable to seek assistance from a professional such as a surveyor or a lawyer.
Participating in a real estate auction requires a scrupulous analysis of the documentation, which is the true informational heart of the entire procedure. The notice of sale (or sale order) is the act by which the judge orders the forced sale and sets its conditions. It contains essential information such as the starting price, which is the initial value established by the appraiser, and the minimum bid, which by law cannot be less than 75% of the starting price. It also specifies the amount of the deposit, usually 10% of the offered price, and the methods for its payment. Finally, it indicates the date and time of the auction and whether it will be held online, in person, or in a mixed format.
The technical appraisal report is the most detailed and crucial document for an informed evaluation. Prepared by a court-appointed expert, it provides a complete picture of the property. Inside, you will find a detailed description of the rooms, land registry data, the floor plan, and an assessment of the maintenance condition. Elements of fundamental importance are the verification of urban planning compliance and the reporting of any building code violations, with the related costs for remediation. The appraisal also clarifies whether the property is vacant or occupied (for example, by the debtor or a tenant with an enforceable contract) and if there are any past condominium debts, which could partially fall on the successful bidder. A careful reading is the best way to protect yourself from risks and unforeseen costs.
Participating in a real estate auction, whether in court or online, follows a well-defined procedure. Once you have studied the documentation and decided to proceed, the first step is to prepare the bid. The documents almost always required include a copy of your ID and tax code, the completed participation application, and proof of the deposit payment. The deposit, usually 10% of the offered price, must be paid via a non-transferable cashier’s check made out to the proceeding or via bank transfer, depending on what is specified in the notice of sale.
In Italy, the most common sales method is the ‘senza incanto’ (sealed-bid) auction. Participants submit their bid in a sealed envelope (or via an online form) by the indicated deadline. The bid is secret and irrevocable. If only one valid bid is submitted, and it is at least equal to the minimum bid, the bidder wins the property. If there are multiple bids, a bidding war starts from the highest offer. The ‘con incanto’ (open-bidding) auction, which is very rare today, involves an immediate public competition among the bidders. Its main difference is that the award is provisional, as further purchase offers are allowed within the following 10 days, provided they are one-fifth higher than the price reached.
The most significant innovation is the online auction, which allows remote participation through web portals authorized by the Ministry of Justice. This method has become the standard for most proceedings. To participate, you need a Certified Electronic Mail (PEC) account and a digital signature, tools that guarantee the legal validity of the bid and the security of communications. Online auctions can be synchronous, with real-time bidding among simultaneously connected participants, or asynchronous, where bids can be submitted over a defined period of several days. There is also a mixed-mode format, which allows participation both online and in person.
Buying a house at auction without having all the cash on hand is possible thanks to the real estate auction mortgage. Many credit institutions, often in agreement with the courts, offer financial products specifically for this need. The process is similar to a traditional mortgage but with some peculiarities related to the tight deadlines of the procedure. It is essential to act in advance: the advice is to contact the bank before participating in the auction to obtain a mortgage pre-approval. This is a preliminary assessment by which the bank guarantees its willingness to grant the loan if you win the bid, provided that the income and property requirements are met.
For the application, in addition to personal and income documents, the bank will ask for the auction documentation, such as the notice of sale and the appraisal report. The loan amount usually goes up to 80% of the property’s appraised value, but if the winning bid is low, it can cover up to 100% of the purchase cost. Once you have won the bid, you have 60 to 120 days to pay the balance. Thanks to the pre-approval, the bank can finalize the contract and disburse the amount directly to the enforcement procedure, concurrently with the issuance of the transfer decree and the registration of the mortgage. To navigate the various offers, it may be useful to consult a complete guide to mortgages and their terms.
The main advantage of buying at auction is undoubtedly economic. Properties are often awarded at a price below their market value, with savings that can be significant. Since the procedure is managed by a court, it also offers a high degree of transparency and security, eliminating the risks of scams typical of private negotiations and the brokerage costs of a real estate agency. Buying at auction is a secure form of sale, as the transfer decree, issued by the judge, automatically cancels all previous mortgages and liens on the property.
However, there are also risks that should not be underestimated. The most common is related to the property’s condition. There may be building code violations to remedy, non-compliant systems, or unexpected renovation costs. Another critical aspect is the occupancy status: if the property is occupied by the debtor or by third parties without an enforceable title, it will be necessary to wait for the eviction process, which can take from 60 to 120 days after the transfer decree is issued. Finally, one must consider outstanding condominium fees, for which the new owner may be liable for the current year and the previous one. A careful analysis of the appraisal and a visit to the property are essential steps to mitigate these risks. In extreme cases, the property might come from a complex real estate foreclosure, making expert assistance even more important.
Once the bid is won, the buyer must take some fundamental steps to finalize the purchase. The first and most important is the payment of the balance. This payment must be made within the firm deadline indicated in the notice of sale, usually between 60 and 120 days. Failure to meet this deadline results in the revocation of the award and the forfeiture of the deposit paid as a penalty. In addition to the balance, the successful bidder will have to pay taxes (registration, mortgage, and cadastral) and procedural costs, the amount of which is usually specified in the appraisal or the notice. Managing the taxes on a home purchase is an essential step in the process.
Once the payment is made, the execution judge issues the transfer decree. This document has the same value as a notarial deed of sale and officially transfers ownership of the property to the successful bidder. The decree also orders the cancellation of all previous mortgages and liens, ensuring a purchase free of encumbrances. The timeline for the issuance of the decree can vary from a few months to over six, depending on the court’s workload. If the property is occupied, the decree also contains the eviction order, which the judicial custodian will carry out. Once the decree is obtained and, if necessary, the premises are vacated, the buyer can finally take possession of their new home.
Real estate auctions represent an increasingly established and accessible purchasing channel in the Italian landscape, capable of combining the solidity of a legal procedure with the opportunities offered by digital innovation. Buying at auction is no longer a taboo, but a strategic choice for those seeking a real estate deal, whether for a first home or an investment. The path, although it requires attention and preparation, is now more transparent than ever, thanks to tools like the Public Sales Portal and the growing prevalence of online auctions. The ability to obtain a specific mortgage for an auction has also opened the doors to an even greater number of potential buyers. Approaching this world with the right information, carefully analyzing the documentation, and planning the financing allows one to seize the significant economic advantages while minimizing the risks. In a constantly evolving market, the auction confirms itself as a valid alternative, a meeting point between tradition and the future of Mediterranean living.
If you are considering alternative options for purchasing a property, you might find our guide on how to buy a house without a mortgage interesting, which explores various creative solutions to make your dream come true.
Finally, for those who already have a mortgage and are thinking about how to best manage it, our guide on mortgage approval offers valuable insights on timelines and procedures, information that is also useful in the context of an auction purchase.
Yes, it is possible to get a mortgage to buy a house at auction. Many banks offer specific products, often in agreement with the courts. It is advisable to act early and request a mortgage pre-approval, which is a bank’s commitment to disburse the sum in case of winning the bid. The application requires personal and income documents, the property appraisal, and the auction participation notice. Generally, the financing can cover up to 80% of the property’s appraised value.
Besides the winning bid price, several additional expenses must be considered. These include taxes (registration tax or VAT, depending on the case), mortgage and cadastral taxes, the fee for the delegate for the sale (who manages the procedure), and the costs for canceling any previous mortgages. You should also calculate any outstanding condominium fees, for which the buyer is responsible for the current year and the previous one. Finally, if there are any building code violations to be remedied, the related costs will be borne by the successful bidder.
Buying at auction offers savings opportunities, but it is not without risks. One of the main ones is the condition of the property, which is sold ‘as is,’ without guarantees for defects or discrepancies. There is a risk of finding the property occupied by the debtor or third parties, which could delay taking possession. Other risks include the presence of building code violations to be remedied at your own expense or non-obvious legal constraints. A careful reading of the appraisal and, if possible, a visit to the property with a trusted technician are essential steps to minimize surprises.
After winning the bid, the first step is to sign the award report, which formalizes the win. Subsequently, you usually have between 60 and 120 days to pay the balance of the price, net of the deposit already paid. Failure to meet this deadline results in the loss of the deposit and the property. Once the price is paid and ancillary costs are settled, the judge issues the transfer decree, the act that sanctions the final transfer of ownership and orders the cancellation of mortgages and foreclosures.
There are several channels for finding properties at auction. The main ones are specialized portals authorized by the Ministry of Justice, such as the Public Sales Portal (PVP). Additionally, you can consult the websites of individual courts, which publish sale notices. There are also numerous private sites and agencies that aggregate judicial auction listings, often offering additional consulting services. It is always essential to refer to the official documentation, such as the notice of sale and the appraisal report, to get complete and truthful information about the property.