Judicial real estate auctions: a business area to focus on?

Judicial real estate auctions

Following the great economic crisis, more and more people wishing to buy a house are turning to judicial real estate auctions, which represent an unmissable opportunity to find a great deal. But there are several purely technical aspects to take into consideration, which is why following the real estate judicial auctions could become a new activity to be implemented in a real estate agency

The judicial real estate auctions are public and transparent, but they are also rather difficult and complicated environments for the layman, consequently, a professional figure capable of guiding people in the purchase of the property is strongly required. Although the latest report from the Revenue Agencies confirms the positive trend in the residential sector for sales relating to 2016, more and more real estate agents find in the judicial real estate auctions a new business area to focus on.

Judicial auctions for real estate: why do people not trust them?

The field of real estate judicial auctions is a very fertile ground for real estate agencies, as potential buyers can easily find properties suitable for their needs, at discounted prices of up to 50% or more of the real value. Surely, if we consider the discounted price, the properties present at judicial auctions are attractive, but the more the gap between the market price and that of the auction is high, the more possible buyers tend to be wary and run for cover. Relying on consultants or professionals with proven experience. Furthermore, proceeding with the purchase of a property at auction in complete autonomy requires a considerable expenditure of energy and time compared to a traditional sale on the free market. Indeed, for the layman the purchase process can be particularly torturous also because they will have to:

– Identify the property of your interest
– Stay up to date on news
– Contact the judicial custodian
– Check the documentation

Nowadays people find it really difficult to carve out free time to devote themselves to these activities and, consequently, more and more often they turn to the real estate agency of trust to optimize the time at their disposal and to be able to participate in judicial real estate auctions. In total tranquillity and serenity, respecting all the dates and deadlines that are imposed by the competent Court. There are several services that a real estate agency specializing in real estate auctions can make available, such as preliminary economic calculationsparticipation in the auctionsubsequent obligations and the possible release of the property. In any case, the most important aspects to which it is necessary to pay painstaking attention are the bureaucratic and financial ones.

The role of the real estate agent in real estate judicial auctions

In light of this new way of looking for a house, real estate agents enabled to practice the profession are increasingly mobilizing to diversify their offer and engage customers and potential customers, starting from the constant monitoring of sales notices more similar to their type. Of customers.

The methods of publication of the notices of sale are determined by the law of 14 May 2005 n. 80. Article 490 of the Code of Civil Procedure provides that in the event of an auction of objects and properties deriving from an executive act, a notice containing all data of public interest is published. The notice must be posted for three consecutive days in the register of the judicial office in front of which the executive procedure takes place. If there are real estate or movable assets worth more than 25,000 euros, the notice must also be published on specific websites and in national newspapers at least 45 days before the deadline for submitting offers’ the date of the auction, together with a copy of the judge’s order and an estimate of the assets (pursuant to Article 173-bis of the Code of Civil Procedure). The judge, if he deems it appropriate, can establish the dissemination of the news also through other advertising means. Currently, many Courts, such as those in the Milan district, periodically publish all the advertisements in the various newspapers: Il Sole 24 Ore, Il Corriere della Sera, La Repubblica, Il Messaggero, to inform the public at once, of all the sales present in that Court. Furthermore, to find out the date of publication, it becomes extremely useful to inquire at the Chancelleries, on the official website.

Why seek the advice of a real estate agent?

People are turning to judicial real estate auctions more and more often because notary fees (from 3,000 to 5,000 euros) are suppressed, as the auction is transcribed by the court judge. At the same time, however, unpleasant surprises may arise for the inexperienced buyer and, right now, the need for advice from a real estate agent comes into play.

In fact, the presence of the real estate agent is extremely important because it can easily identify the presence of hidden costs to be borne by the potential buyer, such as mortgage cancellation costsold mortgagesdetrimental registrations on the property purchased. In general, if you do not ask for the help of the real estate agent, these expenses could end up burdening the buyer for an amount ranging from 2,000 to 10,000 euros, depending on the registrations to be cancelled. Purchase security in judicial real estate auctions it is another reason for which the presence of the real estate agent is necessary. In fact, the professional verify the precise consistency of the property to be purchased through an expert opinion filed by the CTU (surfaces, volumes, urban planning regularity, building permits, seismic practices, building amnesties), in order to check whether the building in question is in compliance with all technical and urban planning regulations. In particular, when it comes to building amnesty, if there were abuses to be forgiven, it is only thanks to the presence of the real estate agent that the terms of amnesty can be reopened in a short time, on the contrary, it is necessary to wait several years.

Finally, the presence of the real estate agent is essential to accurately assess, at the time of the judicial real estate auction, the real current value of the property, in order to allow the customer to make a truly successful purchase, or to advise him to desert the property. Auction. In fact, in the event that the auction is deserted and no one participates in it, the price of the property is reduced by 20-25% in subsequent auctions. The advice of the real estate agent in this very delicate phase will be essential to bring the customer to make the deal of his life or wait for this to happen in the next auction.

Do you want to increase the number of clients of your real estate agency and do you need a hand?

What are the most frequent real estate auctions: with or without enchantment?

Another reason why it is worth seeking the advice of the real estate agent in judicial auctions for real estate is that related to the fact that the auctions are not all the same: the same property could be subject to different negotiations. There are mainly two types of auctions, those with enchantment and those without enchantment; the latter is undoubtedly the most frequent in Italy, let’s see why.

In order to participate in a real estate auction without enchantment, each participant must submit his / her purchase offer in a sealed envelope to the Court Registry indicating:

– Price
– Methods
– Payment times

The sealed envelope will be opened only during the hearing, in the presence of the various participants. If there are more valid offers, i.e. higher than the base price, the judge has the power to call a new auction, this time with enchantment. In the event that there is only one valid offer, it will be considered valid if it is at least ⅕ higher than the base price. If the offer is lower, it will be up to the judge to decide whether or not to carry out a new auction with enchantment. With Law 132 of 6 August 2015, the Legislator gave a strong signal in favour of auctions without enchantment, considered more effective for several reasons:

– Speed: the award is immediate, without having to wait for a possible increase in the fifth
– Security: the envelopes contain irrevocable offers and not requests to participate, as happens in the sale with enchantment
– Transparency: it is more difficult to create disturbing attitudes unlike sales with charm

Furthermore, the sale without enchantment is the most frequent type in real estate judicial auctions because possible improvements can be made. In fact, if more valid offers are presented, the competition is opened on the highest offer.

Considering the great interest that judicial real estate auctions arouse on different types of customers such as:

– Individuals who want to buy properties at judicial auctions for their own use
– Savers who want to buy properties to make them income
– Those who want to invest with short trading operations
– Investors who have plenty of liquidity

For the real estate agent, obtaining new customers by carrying out their services can become an additional source of income and therefore yes, dedicating a business area to the issue of real estate judicial auctions can become a strategic and profitable activity in the mix of daily activities. Of each agent!