Villa in Alghero sold at auction by AuctionEu.com
Villa in Alghero sold at auction by AuctionEu.com AuctionEu.com

When you think of houses for sale at auction, in Italy or elsewhere in Europe, you probably think of properties that have been repossessed and are being sold by court order. These types of properties can represent an excellent opportunity to get a home for a relatively low price, but they do have their pros and cons. On the whole though they are proving an increasingly popular option to buy real estate in Italy, both for those looking to buy a residence at a reduced price without turning to the 1 euro houses project, and for investors looking to rejuvenate small villages and put them back on the map. Unfortunately though, this typical type of property auction has its supply of properties limited to those the courts order to be sold in this way. 

But with all of the interest in this method of buying and selling real-estate, it was only a matter of time before it was pushed beyond repossessed properties, and out of the orbit of the courts. Buying houses at auction between private individuals can instead become an alternative way of obtaining a property at advantageous prices, with multiple advantages for the entire market. AuctionEu.com is one of the first realities in Italy to be founded on this concept, and on 14 and 15 December it will auction its first stock of properties. Raffaella Massi, head of the AuctionEU.com project, explained to idealista/news what the business consists of.

AuctionEU.com is a web platform dedicated to buying and selling residential and commercial property by online auction. AuctionEU.com is a registered trademark of Bayview Italia S.r.l., based in Milan, and a subsidiary of the American Bayview group, based in Miami, and was created with the aim of offering reasonably priced properties, with no legal constraints or charges, for those wishing to buy their first home or other properties on a transparent and convenient market.

"The idea is to exploit the potential of the fact that Italians are homeowners in the vast majority of cases, to put the expertise of our consultants at the service of purchases not only by large investors, but also by private users," explains Raffaella Massi. - What's more, we make available properties that normally, both in terms of number and type, sometimes escape the traditional market".

How is buying at auction on AuctionEu.com innovative?

Buying a property at private auction is based two key characteristics: ease of use and transparency. Compared to our competitors, AuctionEu.com ensures a constant flow of properties for those who wish to participate and purchase, and we take care of their acquisition by international and domestic investors. We also ensure transparency as we are the asset managers of the transactions, therefore we are able to provide any information related to the properties on auction, from the floor plan to the technical information to the verification of the situation of the property, which you might be unable to find in a normal listing.

How do I buy a house at private auction on AuctionEU.com?

To buy a house at a private auction on AuctionEU.com you do not need to prove that you have the required amount of money before you buy (as is the case with a judicial auction). For the purchase of the house at auction you can apply for a mortgage through Affida, the intermediary we have chosen for this purpose. In concrete terms, the platform is easy to use: by registering you can access photos, virtual tours and all the documentation for a technical due diligence. Then you can request a visit with our agents, who offer typical services without intermediation costs (which applies to every stage of the negotiation). Once the decision has been made, a form is available on the website to put together the proposal, which will then be formalised by the notary with the deed in the event that you win the auction.

When will it be possible to buy houses in private auctions?

AuctionEu.com's first private auction will be on 14 and 15 December, with a set of 50 properties with a total value of €8 million. These properties are concentrated in the north, where 60% of them are located, but we also have other locations. The portfolio consists mainly of residential properties, but there are also commercial buildings. The auction is aimed at small investors and private individuals, also for investment purposes. The houses can be purchased in two ways: "buy it now", which allows you to take the property off the market at the price set by the owner, already discounted by 10 per cent compared to the market value; this option must be formalised within ten days of the auction. The other way is to participate in the auction itself, which is open to anyone. On 14 and 15 December, there will be an invitation to bid, with bids being placed until the auction is awarded. Whoever wins will finish the auction with the property's deed.

Why is it worth buying a house at private auction?

Buying a house at auction between private individuals is worthwhile because, at least in our case, there is no commission to pay. Another advantage is transparency: the availability of documents, the fact that we have a dedicated number to call to resolve any doubts. People appreciate this method, but they want to know how the online mode integrates with the real transaction. Resolving their doubts also helps us to better plan subsequent auctions, so that our service can be improved from time to time and tailored to the real needs of our customers.

What are the prospects for the development of AuctionEu.com?

In the future, we are considering expanding the type of properties offered, as well as improving the service by testing it on different lots of properties for sale. In the US, the system is already well established, as our parent company is located there; however, we are now oriented towards Europe and we are studying how to best replicate the US model in the "Old World".

What is AuctionEu.com's relationship with portals such as idealista?

Real estate portals are important for giving visibility to sales of homes at private auctions: since we target not only large investors but also end users (ie. buyers that plan to live in the property), listings on real estate portals are essential for AuctionEU.com. In fact, our listings have always been present through our agents.

How can an estate agent work with AuctionEu.com?

Real estate agents are important to AuctionEu.com because they allow us to physically meet homebuyers, who have purchased through an online process. In addition, agents allow us to solve problems and provide information about the property, reaching people at a grassroots level: their role is therefore perfectly integrated with that of the platform. Agents can register on the portal as collaborators or referrers: in this way they can use a tool provided to refer our auction houses to their clients, receiving a 2 per cent reward if the property is sold. For the time being, the referral agents are part of our company, but we do not rule out opening up to the outside world in the future.