Real estate auctions still represent a good opportunity to acquire a property at a significantly reduced price, on average 30% to 15% lower than its market value. The auction is the result of a long process caused some time ago by the failure of an individual (or a company) to meet its financial obligations. In 2022 alone, 113,056 (13 per hour) real estate units were auctioned in Italy.
Key elements of real estate auctions include:
- The Appraisal: Provides details on the property and establishes the minimum selling price, as determined by an expert appointed by the judge.
- The Order of Sale: Establishes the terms and conditions of the auction.
- The Judicial Custodian: Selected by the judge to manage, conserve and administer the seized asset.
- The Notice of Sale: A public document that lists essential information such as the date, place, time of the auction, identification of the property, the minimum price, the minimum increase in the offer, the deadline for the submission of offers, the method of submitting the offer and the related documents to be produced and so on.
Essential Glossary of a Real Estate Auction
- Auction Base: The starting value of the property.
- Increase: The minimum increase allowed for offers, determined at the discretion of the execution judge or the delegated professional.
- Security Deposit: An amount required to participate in the auction, refundable if you do not win the item.
- Sale Date: The day and time the auction starts. In case of absence of participants the judge will establish a new date.
- Availability: Indicates whether the property is free, occupied or subject to restrictions.
- Court: The venue of the auction, which can be physical or digital through an online platform.
Participation in Auctions: How does it work?
Auctions can be online, in person or mixed, be “without further bidding”, where the bids are sent in sealed envelopes, or “with further bidding”, an open process where the bids are made public among the participants. In the case of auctions without, if more than one bid submitted is valid, an auction takes place between these participants.
The Advantages of Buying at Auction
The main advantage consists in the reduced starting price and in the transfer of ownership with discrepancies that can be easily remedied after the award and not before, unlike the purchase on the free market in the presence of the notary. However, the participation procedure is often complicated.
The guarantee of GSI professionals
Just reading the method of sending the offer is often quite complex and laborious to implement. To avoid the risk of finding your participation invalidated, it may be crucial to contact a specialized agency to which you can entrust the task and also receive information and adequate advice on multiple fronts.
When it comes to judicial auctions it is very important to move in the right way to avoid a series of mistakes that could turn a good deal into a real nightmare. For judicial auctions in Piedmont and Liguria, northwest of Italy GSI SPA represents a sure reference. Over thirty years of experience in the field, in-depth knowledge of real estate values in the area, as well as practice in post-award procedures, make GSI a qualified and reliable partner you can count on at every stage of the process. Furthermore, the GSI Team also boasts numerous years of experience in the construction sector through Impresa Pastura Srl, a historic company for the Turin area of Piedmont and Liguria specialized in renovations.
