Buying a home at auction in Catania has become a major trend. With prices in the traditional market rising, many see the courtroom as the only way to secure a property at a discount of up to 30% or 40%. But is all that glitters truly gold?
The truth is that behind a rock-bottom price, there can be pitfalls that an untrained eye will miss. Here is what you need to know before paying your deposit.
The Dangers Hidden in the Appraisal
The most important document is the CTU (Court-Appointed Technical Consultation). However, these appraisals are often years old.
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Building Violations: Many auction properties have moved walls, unauthorized verandas, or outstanding fines for building amnesties. These costs fall on you and can wipe out all your initial savings.
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Occupancy Status: Is the house vacant? Is it occupied by the debtor? Or worse, is there a lease agreement that remains valid despite the foreclosure? Evicting an occupant can require months, if not years, of legal battles.
Quick Guide: Minimum Bid vs. Failed Auction
To participate knowledgeably, you must know these two terms:
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Minimum Bid: This is the lowest amount you can offer to participate (usually the base price reduced by 25%). If the base price is €100,000, you can offer €75,000.
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Failed Auction (Asta Deserta): This occurs when no one submits an offer. In this case, the judge schedules a new sale, lowering the base price further (usually by 20% or 25%). This is where the real deals are made, but competition also increases.
Advice from the Agent
Never go to an auction "blind." Real savings are only achieved if you have pre-calculated:
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Transfer costs (taxes and delegate fees).
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Costs for any legalizations/amnesties.
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The renovation budget.
Do you want to participate in an auction in Catania but are afraid of miscalculating? As an agency, we offer a technical consulting service to analyze the appraisal with you and determine if the deal is real or if it’s better to walk away.
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