Expert appraisal report: how to read it and what to look for before bidding
The expert appraisal report (perizia estimativa) is the sworn technical report drawn up by the expert appointed by the enforcement judge. The market value of the asset is determined under art. 568 c.p.c.; the specific content of the report is set out in art. 173-bis of the implementing provisions of the c.p.c. (disp. att.), which lists the points the expert must examine (cadastral identification, planning compliance, possession status, restrictions, encumbrances, any critical issues). It is the document that determines whether the lot is an opportunity or a trap. Reading it in full, and knowing how to interpret it, is the minimum prerequisite for an informed bid. Anyone who buys at auction without reading the appraisal is buying blind.
Anatomy of the appraisal report: the standard sections
Appraisal reports follow a well-established structure, although it may vary slightly from expert to expert and from court to court. The main sections recur, and every bidder should know where to look for the key information.
Identification data of the asset. Address, cadastral data (sheet, parcel, sub-unit), cadastral category, class, cadastral area and saleable area (superficie commerciale). Check that they match what is published in the notice of sale. Discrepancies between the appraisal and the notice are rare but possible, and in that case the notice prevails for the auction data (starting price, method). Pay attention to the difference between the cadastral area (the one in the land registry) and the saleable area (the one used for the valuation): the difference can be significant, especially where there are appurtenances (cellars, garages, terraces).
Description of the asset. State of repair, internal layout, floor, orientation, appurtenances (cellar, garage, garden), year of construction, type of construction (reinforced concrete, load-bearing masonry, prefabricated). The expert describes what they saw at the time of the inspection. This is the section most likely to be out of date: if the inspection took place 2–3 years earlier, the current condition may be significantly different. A property described as “in good condition” in 2022 may show damage from leaks, vandalism or decay in 2026 if it has stood empty.
Planning and cadastral compliance. The expert checks that the actual state matches the building permits (building licence, concession, building permit, SCIA, CILA) and the cadastral floor plan. If there are discrepancies, the expert classifies them as regularisable or not and estimates the cost of regularisation. This is one of the most critical sections of the entire document. Planning discrepancies that cannot be regularised can make the purchase a problem rather than an opportunity. Discrepancies that can be regularised have a cost that must be added to the overall budget.
Legal status. Mortgages, attachments, seizures, easements, restrictions, pre-emption rights. The expert lists all registered encumbrances. Most are cancelled by the transfer decree (mortgages, attachments, seizures), but some easements and restrictions survive the forced sale. The expert indicates which encumbrances will be cancelled and which will not. Read this section with particular care: rights of way, for example, remain and can significantly affect how the property can be used.
Occupancy status. Vacant, occupied by the debtor, occupied by third parties with or without a title. If occupied by third parties, the expert indicates whether the title (lease, loan for use) is enforceable against the procedure (i.e. whether it was registered before the attachment was recorded). This information is decisive for the timescales of vacating the property and must be assessed with the utmost care.
Valuation. The expert applies one or more valuation methods (comparative, income-based, reconstruction cost) and determines the market value of the asset. On the basis of this value the judge sets the auction starting price, possibly applying reductions for occupancy, planning discrepancies, state of maintenance or difficulty of sale. The reductions are stated in the appraisal itself, with the relevant percentages.
Photographs. The photos attached to the appraisal document the condition of the asset at the time of the inspection. Compare them with the written description: sometimes photos reveal details that the description omits (mould, structural cracks, exposed systems, the condition of the roof, asbestos roofing). What is not in the photos also counts: if the expert did not photograph the bathroom or the kitchen, there may be a reason.
Legal red flags: what should stop you
Not all the legal problems reported in an appraisal are equal. Some are resolved automatically by the transfer decree; others remain the successful bidder’s responsibility and can turn an apparent bargain into a costly problem.
Building violations that cannot be regularised. If the expert classifies a discrepancy as non-regularisable (e.g. a building in a protected area, an extension in breach of planning rules that cannot be covered by an amnesty), the successful bidder inherits the obligation to restore the lawful state. This can mean partial or total demolition of the unauthorised works. The cost is borne entirely by the buyer and includes demolition, waste disposal, restoration and technical fees. Always check whether the expert has indicated whether regularisation is possible and its estimated cost. If the discrepancy is classified as non-regularisable and concerns a significant part of the property (e.g. an extra floor, an enclosed veranda, an extension), assess it with the utmost caution: the cost of demolition could wipe out the saving on the auction price.
Occupation with an enforceable title. A lease prior to the attachment may be enforceable against the procedure under art. 2923 c.c. For leases of up to nine years, a certain date prior to the registration of the attachment is required; registration with the Revenue Agency is the standard reference. For leases longer than nine years, the lease must have been registered before the attachment, otherwise enforceability is limited to the first nine years. The property remains let until the natural expiry of the lease, which for a 4+4 lease can be years away. An important exception is provided by art. 2923, paragraph 3, c.c.: if the rent is more than one third below market value, the successful bidder can request a declaration that the lease is not enforceable (Court of Cassation 9877/2022). If the appraisal indicates an enforceable lease with a rent in line with the market, your financial plan must take into account that you will not have use of the property on handover and that the rent collected will be the one in the original lease.
Easements and restrictions that survive the sale. Rights of way, rights of view, aqueduct easements and planning or landscape restrictions are not cancelled by the transfer decree. They are inherent in the asset and pass to the buyer. A right of way can mean that third parties are entitled to cross your courtyard or your land. A landscape restriction can limit renovation options. Check in the appraisal whether there are active easements and what impact they have on the intended use of the property.
Pre-emption rights. In certain specific cases (listed cultural heritage, agricultural land bordering farms, properties let for non-residential use) there are pre-emption rights that can be exercised even in a forced sale. The expert reports them in the appraisal. If present, the successful bidder could be “overtaken” by whoever exercises the pre-emption right at the same price.
Outstanding condominium charges. Art. 63 of the implementing provisions of the Civil Code provides that the buyer is liable for the condominium charges of the current year and the year before the date of the transfer decree. The expert generally quantifies the arrears. In buildings with problematic management or with approved extraordinary works, the arrears can be substantial (€5,000–20,000 is not unusual). This amount must be added to the budget.
Technical and planning red flags
In addition to legal problems, the appraisal reports technical issues that directly affect the value and usability of the asset.
Systems that do not comply with regulations. The expert checks whether there are compliance certificates for the systems (electrical, plumbing, gas, heating). If the systems are not certified or are clearly non-compliant, the cost of bringing them up to standard falls on the successful bidder. For a flat of 80–100 m² with systems dating from the 1970s, a complete upgrade (electrical + plumbing + gas) can cost €15,000–25,000. In larger properties or with very outdated systems, the cost grows proportionally.
Asbestos. If the appraisal reports materials containing asbestos (eternit roofing, pipe insulation, seals, insulating panels), removal is mandatory and expensive. The cost ranges from €15 to €50/m² for removal and disposal alone, excluding the work to replace the roof or insulation. For a 100 m² eternit roof, the cost of removal, disposal and replacement of the roofing is around €8,000–15,000.
Cadastral discrepancies. The cadastral floor plan must match the actual state. If it doesn’t, cadastral regularisation is necessary before any subsequent sale or mortgage application. The cost is limited (€500–2,000 for a technician), but the procedure takes time and, if there are underlying planning discrepancies, it can open up a more complex problem.
Structural condition. Cracks in load-bearing walls, subsidence of the foundations, roof problems, chronic leaks. The expert describes them but does not always quantify the cost of repair in detail. If the appraisal reports structural problems, have the cost of the work assessed by a technician you trust before bidding. Foundation underpinning can cost €30,000–80,000; a new roof €20,000–50,000. These are not costs you want to discover afterwards.
Energy class. More recent appraisals include the energy rating of the property. A property in class F or G requires significant work to improve its energy efficiency, which can affect the overall cost of the operation and the future marketability of the asset.
How old can an appraisal be?
The appraisal is drawn up on the judge’s instructions when the enforcement proceedings begin. Months or years can pass between the appointment and the sale. There is no legal limit to how long an appraisal remains valid, but its reliability degrades over time.
An appraisal 1–2 years old is generally reliable for the legal data (mortgages, planning compliance, easements), which rarely change. The actual condition of the property, however, may have changed significantly: deteriorated maintenance, damage from occupation, vandalism, leaks, overgrown vegetation. For appraisals more than 3 years old, the viewing becomes even more important than usual.
In some cases the judge orders an updated appraisal, especially if the sale has been postponed several times with successive reductions. The update is at the judge’s discretion: you cannot request it as a bidder. If the appraisal seems too old to you, you can point this out to the professional delegate, but there is no guarantee that the judge will order an update.
The auctions that have undergone the most reductions (unsold at the first attempt, then the second, then the third) are those where a gap between the appraisal and the current condition is most likely. The starting price may have fallen by 50–60% from the initial valuation, but the asset may have deteriorated in the meantime. On addicta you can check the history of reductions for each lot.
The viewing: how and when to request it
Art. 560 c.p.c. provides that the court-appointed custodian must allow a viewing to anyone who requests it. The custodian’s contact details are in the notice of sale. Contact them to book an appointment well before the bid deadline: viewings are organised in limited slots and, for properties in high demand, slots run out quickly.
During the viewing, check what the appraisal describes. Compare the actual condition with the photos attached to the appraisal. Check the visible systems, the condition of the roof (if accessible), any damp or leaks, the condition of the common areas (if in a condominium), the state of the windows and doors, and whether locks and doors work. If the property is occupied, the custodian coordinates access with the occupant: do not try to get in on your own.
If you are a technical professional (engineer, architect, surveyor), use the viewing for operational due diligence: note any discrepancies, check the systems, estimate the cost of the work. If you are not, consider being accompanied by a technician you trust: the cost of a consultation (€200–500 for an inspection with a verbal report) is negligible compared with the risk of buying a property with problems not visible in the appraisal.
Don’t limit the viewing to the inside of the property. Check the outside too: roof, façades, courtyard, access, parking. If it is in a condominium, take a look at the common areas (stairs, lift, roof, façade): their condition tells you a lot about how the building is managed and about future charges.
For an overview of the complete purchase procedure, see the guide to buying at auction.
Court appraisal vs bank valuation
If you intend to buy with a mortgage loan for a court auction, the bank requires its own valuation, separate from the court’s. The two have different purposes and rarely arrive at the same value.
The court appraisal estimates the market value of the asset as it stands, taking into account occupancy, discrepancies and the state of maintenance. It is the basis on which the judge sets the auction starting price.
The bank valuation estimates the value as security for the mortgage loan. The bank is conservative: it applies discounts for risk, for discrepancies and for market conditions. The bank valuation is almost always lower than the court appraisal, typically by 10–20%. This gap directly affects the loan-to-value the bank grants.
If the bank valuation is significantly lower than the award price, the bank may finance a share that is insufficient to cover the balance. Check this with the bank before the auction, not after the award, when the 120 days for the balance are already running.
Frequently asked questions
Is the appraisal always reliable?
The appraisal is a sworn technical report drawn up by a professional appointed by the judge. It is reliable within the limits of what the expert was able to check at the time of the inspection. The condition of the property may have changed since. That is why the viewing is the indispensable complement to the appraisal.
Can I challenge the appraisal?
As a potential bidder, no. The appraisal is an act of the enforcement proceedings and can only be challenged by the parties to the proceedings (debtor, creditors). If you think the appraisal contains glaring errors, you can point this out to the professional delegate, but the decision to order an update rests with the judge.
Does the appraisal say whether the property has asbestos problems?
The expert must report materials suspected of containing asbestos if they are visible (eternit roofing, insulation). However, the appraisal is not an environmental survey: the expert does not take samples or carry out laboratory analyses. If the appraisal or the viewing makes you suspect asbestos, you can commission an analysis from a specialist laboratory before bidding.
What happens if the appraisal does not mention a defect that I discover after the purchase?
The forced sale has its own rules on the warranty for defects, contained in art. 2922 c.c., which expressly excludes the warranty for defects in the thing sold that applies to an ordinary sale (art. 1490 c.c.). The successful bidder buys the asset as it stands. Only serious legal limitations remain protected (e.g. lack of title, eviction), not material defects in the asset. If the defect was not mentioned in the appraisal and could not be detected with ordinary diligence, the risk is borne by the buyer. This is one of the reasons why a viewing and a preliminary technical inspection are strongly recommended.
Is the appraisal also valid for applying for a mortgage?
No. The bank requires its own valuation, drawn up by an expert it trusts. The court appraisal is a useful reference document for the bank, but it does not replace the lender’s internal valuation. The bank valuation is generally lower than the court appraisal.
How much does it cost to have the appraisal examined by a professional?
A technical consultation to analyse the appraisal and check the documents costs between €200 and €800, depending on the complexity of the asset and the area. If the consultation also includes a viewing and a written report, the cost can rise to €1,000–1,500. It is a negligible investment compared with the value of the property.
How do I check planning compliance if the appraisal is unclear?
You can request access to the records at the municipality’s technical office (art. 22 Law 241/1990). You need the cadastral data of the asset. Access to the records shows the building permits issued and any regularisation applications. Alternatively, you can instruct a qualified technician to carry out the check on your behalf. The cost is modest (€200–500) and the result is a certainty that the appraisal alone does not guarantee.
The appraisal is the starting point, not the finishing line. Read it in full, check what you can check, and if something doesn’t add up, ask before bidding.