How much it costs to buy a home at auction, item by item
The starting price is the starting point, not the price.
Anyone who compares an auction with the open market by looking only at that number is comparing two different things, almost always to their own disadvantage, because on the open market the asking price already includes much of what comes later here.
These are the items, divided into those you can calculate beforehand and those you cannot.
What can be calculated beforehand
Transfer taxes. They vary depending on who is selling and what you are buying.
If the debtor is a private individual, registration tax is payable: 9% of the value, or 2% if you meet the first-home requirements. Mortgage and cadastral taxes are fixed at €50 each.
If the debtor is a business and the sale is subject to VAT, VAT is payable at 10% or 22% depending on the asset, and the mortgage and cadastral taxes at a fixed amount.
For residential property there is a mechanism worth knowing about, the price–value rule (prezzo-valore): it allows registration tax to be calculated on the revalued cadastral income instead of on the price paid. On a property bought at a good price it can reduce the tax significantly. It applies on request and under certain conditions: you have to ask the delegate for it, it does not happen automatically.
The delegate’s fee. It is set by a ministerial decree on the basis of the award price, and is borne by the successful bidder for the part relating to the transfer. On mid-sized properties it is generally a few thousand euros.
Procedural costs. Registration of the decree, cancellation of mortgages and attachments, cadastral transfer. They are administrative items, each of a few hundred euros, which add up.
The contribution for registration and transcription. Fixed, but it has to be paid.
The delegate calculates the total of these items and notifies it after the award. You cannot ask for it before bidding, but you can estimate it, and that is what the “il prezzo finito” (final price) feature on addicta’s auction pages does: it puts together taxes, charges and the delegate’s fee in a deterministic way, with a projection to the next price reduction.
What cannot be calculated beforehand
This is where the money that ruins plans lies.
Vacating the property. If the asset is occupied, anything from a few months to more than a year can pass between the transfer decree and actually having it at your disposal. The direct cost is limited, because the release order is carried out by the custodian. The indirect cost is not: these are months in which you pay taxes on a property you can neither use nor let, and if you are renting in the meantime you pay twice.
Condominium arrears. As the new owner you are jointly liable for the contributions for the current year and the previous one. If the debtor had not paid for years, your share can run to thousands of euros. The appraisal report sometimes says so, sometimes not: asking the building manager before bidding is half an hour well spent.
Works. An auction property is almost always a property nobody has looked after for years. Systems to be redone, a boiler to replace, windows and doors, damp. The appraisal describes the condition but does not give a quote, and the difference between “needs freshening up” and “needs redoing” is tens of thousands of euros.
Planning regularisation. If there is an irregularity, regularising it has a cost that depends on the municipality and the type of unauthorised work, and in some cases it cannot be regularised at all. It is the only item that can make the operation impossible rather than just more expensive.
An order of magnitude
The fixed items — taxes, delegate, costs — on a mid-sized residential property are roughly between 6% and 12% of the award price, depending on whether you meet the first-home requirements and whether the price–value rule applies.
The variable items have no order of magnitude. A vacant flat in good condition may have none. An occupied one, with condominium arrears and systems to be redone, can add 30% and two years.
That is why the average 23% discount on the appraisal, taken on its own, does not tell you whether an operation is worthwhile. The comparison must be made between the all-in cost and what you would spend on the same property on the market, ready to move into.
Where the margin is lost
Three recurring mistakes, in order of frequency.
Calculating the budget on the starting price. You bid up to the last euro you have and then you do not have the money for the taxes. It is the most common cause of forfeiture of the award.
Not checking the occupancy status. An occupied property bought as if it were vacant pushes back the whole plan by a year.
Underestimating the works because the property “looks fine”. It almost always looks fine, in a half-hour viewing with the lights on.
Frequently asked questions
Do you pay a notary when buying at auction? No, no notarial deed is needed: the transfer takes place by the judge’s decree. You do, however, pay the delegate’s fee, and the delegate is often a notary but acts in a different capacity.
Do you pay an agency commission? No.
Can you get first-home tax benefits? Yes, if the ordinary requirements are met. They must be declared in the manner and within the time limits provided: ask the delegate how and when.
Do I pay off the mortgages on the property? No. Mortgages and attachments are cancelled by the transfer decree. Restrictions of a different kind remain, however: easements, planning or landscape restrictions.
Can I find out in advance how much tax I will pay? An estimate, yes; the exact figure is notified by the delegate after the award, because it depends on choices you make, such as the tax benefits and the price–value rule.
This guide describes the general framework for information purposes and is not a substitute for tax advice. Rates and procedures depend on the specific case: the notice of sale and what the delegate notifies always prevail.