Significant Economic Damage
This discrepancy highlights a vast destruction of value in the Italian residential property sector. A comparison of auction and market prices reveals that houses are offered for sale at just over a third of their real value. This phenomenon represents a serious problem, not only for sellers, but also for creditors and delinquent debtors. The combined effect of the inefficiency of the judicial system and the poor management of property auctions leads to a considerable loss of wealth.
Impact on Morose Creditors and Debtors
Selling at an excessively low price during real estate auctions puts both creditors, who see their credit recovery reduced, and morose debtors at a disadvantage. The latter not only lose their house at auction, but also remain indebted to the bank for the part of the debt not covered by the sale of the property. This unfavourable scenario penalises debtors and only favours speculators.
Reviva's Voice: Making Auctions More Attractive
According to Reviva and the Sole 24 Ore article, property auctions have market potential, but it is essential to make them more attractive. The research shows that despite a potential for higher prices, the number of property auctions dropped by 20 per cent in 2023 compared to 2022. This drop, although positive, is differentially distributed among regions, with a more pronounced decrease in the north than in the south. The slower pace of the courts in the south contributes to slowing down the process, once again highlighting the costs of the inefficiency of the judicial system.
Turn to Seasons Real Estate: A Solution Before the Property Goes to Auction
In a complex and changing market environment, it is crucial to act promptly to prevent your property from depreciating excessively. Seasons Real Estate, with its experience and expertise in real estate, offers customised solutions to maximise property value. Contacting Seasons Real Estate before your property goes to auction can be the key to preserving the value of your investment and achieving a more favourable result. Make an appointment with the agency before it is too late.
(RIPRODUZIONE RISERVATA © Copyright SEASONS REAL ESTATE press office sfc.company- Fra.Fa.)