Real Estate Auctions in Italy [overview]

Imagine this: you’re browsing Italian real estate listings, and you come across properties being sold at auction. Intrigued? You’re not alone!

More and more foreigners are discovering this thrilling method of buying a home in Italy at a fraction of its actual market value, potentially saving a significant amount of money.

And no, I'm not talking about those €1 homes you’ve heard about — I don't think they’re the deal of the century. Here, I’m talking about real estate auctions.

Having attended numerous auctions myself, alongside my clients (and even my father-in-law!), I’ve gained a wealth of knowledge. I’ve decided to share all the vital information you need to navigate this exciting world, avoiding some truly cringe-worthy mistakes!

What are auctions?

The judicial real estate auction (asta giudiziaria) is part of a legal process where a property is seized and auctioned off to the highest bidder. The money raised goes straight to the creditors. Now, before you ask—yes, this is the sort of drama that involves regular people.

When it comes to businesses or companies going under, that's what we call a bankruptcy auction (asta fallimentare). But for your purposes? Honestly, there’s almost no difference.

Differences between “Vendita con incanto” and “Vendita senza incanto”

If you've never been to a live auction, let me paint the picture for you: imagine those high-drama auctions you see in movies or TV shows—that’s what we call "vendita con incanto," the traditional type.

• Sale with reserve (“Vendita con incanto”): Once the auction kicks off, the bidding war begins! Each time someone makes a higher bid, others have a three-minute window to counter. If three minutes pass without a new bid, the highest offer wins. But wait—don’t pop the champagne just yet. The win isn’t final. Other bidders get a generous 10-day period to swoop in with a counteroffer, as long as they top the last bid by at least 20%. Not surprisingly, this type of auction is a dying breed. Almost extinct, really.
• Sale without reserve (“Vendita senza incanto”): This is the real deal. Much more common, and here’s the kicker—the highest bid takes it, no questions asked. No 10-day waiting period, no second chances. If you’re the top bidder, that house is all yours. Simple, right?

Online Auctions (welcome to the digital era!)

Ah, online auctions—thank you, COVID-19, for bringing these into the limelight. Back when the world hit pause, online auctions were the only way to keep the wheels turning in the real estate world.

Here’s the deal: you sign up on a dedicated platform, submit your bids anonymously, and pay your deposit via bank transfer. Oh, and you'll need a PEC email address (which, let’s be honest, costs pennies).

How do online auctions work? Let’s break it down:

• Synchronous: Think of this as the eBay of real estate. It's live, fast, and you must be present in real time to place your bids or raise the stakes. The clock is ticking, and when time’s up, it’s game over. If things get heated, there’s even a handy chat feature where the auction officer can talk with potential buyers. It’s like a live auction, but with your pajamas on!
• Asynchronous: Now, if you’re not into the "watching the clock" vibe, the asynchronous auction might be more your speed. It works just like the synchronous one, but you have more time. The auction can stretch over several days, and if someone outbids you, the system will send you a lovely little email notification. Then, you decide whether to raise your bid or gracefully bow out. No rush, no stress—well, at least not until the email arrives.
• Hybrid: And then there’s the hybrid option, the best of both worlds. You can either bid online or go old-school and show up in person to place your bids. It’s the real estate version of “choose your own adventure,” combining the thrill of traditional auctions with the convenience of the digital age.

How to participate in an Italian property auction

Key documents to review before bidding: Perizia and Avviso di Vendita

Before you jump headfirst into any auction, thoroughly read two key documents: the appraisal report (“Perizia”) and the sale notice (“Avviso di Vendita”).

The appraisal report is like a real estate detective file, put together by a certified professional—usually an engineer, architect, or surveyor. Here’s what you’ll find inside:

• A detailed property description, including its location, features, finishes, and overall condition.
• The property’s cadastral data, with the total area in square meters.
• An urban and cadastral analysis, covering building permits, urban planning compliance, the occupancy certificate, the energy performance certificate, and the current occupancy status (whether the property is vacant, occupied, or rented out).
• An economic valuation of the property and the methods used to determine it.
• And of course, a photographic report, because we all know pictures say more than a thousand words!

The sale notice, on the other hand, is drawn up by the auction officer “delegato alla vendita” (or sometimes the judge) and includes:

• The auction type (with/without reserve, synchronous/asynchronous/mixed).
• The date, time, and location of the auction.
• A brief description of the property up for grabs.
• The starting price, minimum bid, and bidding increments.
• The deposit amount (usually 10% of the offered price).
• Who can participate, how can you submit your bid, and what must your bid include.
• The terms and conditions for participating and how the auction will unfold.
• Plus, instructions on how to schedule a property visit.

These documents are your treasure map—study them well!

Difference between prezzo base (auction base prices) and offerta minima (minimum bid)

The auction base price (“prezzo base”) is the value determined by the appraiser during the property’s evaluation. It’s essentially the price at which the property is listed for sale.

But don’t confuse this with the minimum bid (“offerta minima”), which is the lowest amount someone can offer to participate in the auction. Typically, this is 25% lower than the base price—tempting, right?

Ready to score a dream home at a fraction of the price? Let’s navigate Italian property auctions together—contact us today!

How Does an Auction Work?

Suppose there is only one bid that is equal to or higher than the base price. In that case, the property is automatically awarded to that bidder.

However, suppose the offer falls between the base price and the minimum bid. In that case, the offer might still be accepted—as long as no one else has applied for the property and the auction officer believes they won't get a better price in a future sale.

Now, if there are multiple bidders, things get exciting. The participants will be invited to a bidding war, starting from the highest offer. The property will go to whoever offers the biggest raise.

And what happens if there are no bids? Well, keep reading to find out...

What happens if there are no bids?

If no one shows up to bid at an auction, it's declared a "deserted" auction. What happens next? The property is put back on the auction block a few months later, but this time with a tempting 25% price drop compared to the previous round.

Theoretically, there's no limit to how often a property can be auctioned. However, if a judge takes a closer look and realizes the property has slim chances of selling, or the sale price wouldn’t be enough to satisfy the creditors, they can call it quits and cancel the entire process altogether.

Common roles involved in judicial auctions or foreclosure procedures

To officially put a house up for auction, the Execution Judge appoints three key players, each with their own crucial role:

• The Appraiser (Perito): Also known as the court-appointed technical consultant, this professional is responsible for conducting a thorough technical and legal due diligence on the property. The appraiser assesses everything from whether there are tenants, to verifying property boundaries, matching cadastral data with reality, checking for any building violations, and evaluating the property's overall condition. After these in-depth analyses, they determine the property’s value, which becomes the auction's base price.
• The Auction Officer (Delegato alla Vendita): This is typically an accountant or lawyer in charge of facilitating the sale. First, they ensure all the property’s documentation is in order and make it accessible for potential buyers. They also oversee every stage of the auction, create property listings with all relevant details, and issue the sale notice with every critical piece of information. If the auction doesn’t attract any bids, the auction officer has the authority to organize a new auction, lowering the price by no more than 25%.
• The Judicial Custodian (Custode Giudiziario): This person is responsible for physically managing the property until it is sold. They ensure that the property is kept in good condition, organize viewings for potential buyers, and must report all actions to the Court. If the property is occupied, they collect rent if there’s a valid lease, or notify the tenant to vacate the property if not, while overseeing any necessary eviction procedures. The custodian is appointed by the judge at the time of the foreclosure and can be the debtor, the auction officer, or another appointed individual.

Each role ensures that the auction process runs smoothly and that the property is sold under proper conditions.

Discover how to buy at auction like a pro. Avoid costly mistakes and secure your Italian home—talk to our experts now!

How to win a real estate auction

If you’re reading this paragraph hoping to uncover the secret to eternal youth, let me stop you right there—there’s no magical formula for winning a property auction. But with the right strategy, you can definitely improve your chances of success.

Trick #1: Know Your Numbers

Here’s where our “Rogiti in chiaro” service comes in handy. We’ll give you access to the sales contracts for other apartments in the same building or villas nearby, so you can find out:

• Property description
• Surface area
• Sale price
• Payment methods

Basically, all the juicy details of the transaction. Once you have the price per square meter, you can calculate property's value based on hard data, not just neighborhood gossip.

Trick #2: Watch and Learn

If you’re a newbie, here’s a golden piece of advice—just watch and learn at first. Not many people know this, but you can attend real estate auctions as a simple spectator. The auction listings always include contact details for the auction officer—reach out and ask if you can sit in. Show up at the auction (or tune in online), observe, and take notes.

Final Trick: Bid Like a Pro

Here’s the real kicker: if you see two or three bidders fighting it out, let them. Sit back, stay cool, and place your bid at the last second, when no one’s expecting it. This little trick throws your competitors off balance and almost always lands you the win.

Frequently Asked Questions about Italian property auctions

How Long Does the Auction Process Take?

On average, it takes about 18 months from when a property is listed for auction until the final sale is complete.

How long does the debtor have to leave the house?

The debtor can remain in the house until the auction is finalized and the property is officially awarded. Once the judge issues the transfer decree (“decreto di trasferimento”), the debtor typically has 30 to 60 days to vacate the property. However, if the transfer decree isn’t issued right away, those timelines can stretch by several months.

What is “Saldo e Stralcio Immobiliare”?

This special option allows debtors to sell their home to a buyer before the auction takes place by reaching an agreement with their creditors. It’s a way for the debtor to settle their debts and walk away from the situation without any negative marks on their credit history.

Essentially, it’s a way to make a clean break and regain access to credit, as if nothing ever happened.

Your dream home in Italy could be one bid away! Get expert guidance and start your auction journey today.

How to secure a mortgage for auction properties in Italy

Not everyone knows that you can actually get a mortgage for auction properties, too! The process is quite similar to getting a mortgage for a regular home purchase, with one key difference: you’ll need pre-approval from the bank to ensure that they’ll provide the agreed loan amount within the required time frame if you win the auction.

To speed things up, it’s best to work with banks recommended by the Court, but keep in mind that if you’re a foreigner, the bureaucratic process can be quite lengthy and uncertain.

What are the best auction sites in Italy?

The internet is full of real estate auction listings, but if you’re looking for a more targeted search—based on location, budget, and auction dates—your best bet is to consult a real estate agency (in other words: contact us today). Alternatively, you can check the Italian Ministry of Justice website [¹], which lists all real estate auctions across the country.

Can you resell a property bought at auction?

Absolutely, yes! Once you’ve obtained the transfer decree from the judge, you can resell the property, even at a higher price, without any issues. Keep in mind that you’ll be responsible for paying capital gains tax. For more information on this, check out our dedicated article on selling property in Italy. And, of course, if you want to get the best price, we’re here to help you with the resale!

Common types of properties sold at auction

Over 70% of real estate auctions in Italy involve residential properties, with 15% covering commercial properties (such as shops, offices, and restaurants) and the remaining 15% made up of rural buildings and land. Each year, Italy sees around 250,000 auctions, spread fairly evenly across the regions, with a success rate of 40%.

Can Non-Residents Participate in Italian Property Auctions?

Yes, non-residents are welcome to join the fun! Italy allows foreign nationals, including non-residents and non-EU citizens, to buy real estate at auction. All you need is an Italian tax identification number (Codice Fiscale) and to meet the principle of reciprocity—meaning that your home country allows Italians to purchase property there, too (read Can Foreigners Buy Property in Italy).

Tax Implications of Purchasing Property at Auction

The tax implications of buying a property at auction are exactly the same as a standard property purchase—no hidden surprises here! For more information, check out my article on property taxes in Italy.

What risks do buyers face when purchasing property at auction?

The specific risks of buying a property at auction stem from the "as-is" nature of the sale, which means you’re purchasing the property with only limited opportunities to inspect it. This could mean hidden defects. Additionally, if the former owner still occupies the property, evicting them can take time—typically around 6 months. Lastly, securing a mortgage for a foreign buyer is often quite difficult.

Can I delegate someone to participate on my behalf?

Yes, absolutely! I strongly recommend that any foreign buyer delegate a lawyer to handle the auction, thanks to a notarized power of attorney.

Additional Auction Fees and Costs

Auction fees and administrative costs are generally very low and are listed in the sale notice. If you hire a lawyer or a skilled real estate agent, there may be an upfront non-refundable fee, as well as a percentage commission only if you win the auction.

Elena Manzhos: Mother of two beautiful children, wife, and real estate agent for over 15 years. More than 20 years ago,  I moved to Italy from Eastern Europe. I have always had a deep-seated passion for houses; as a child for the Barbie house, and now as a real estate professional, my love for luxurious properties is unwavering.
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