Making an offer in Italy
Finding the home you want to buy in Italy is usually an emotional decision – you know it when you see it! – but making an offer is where matters get legal and seriously financial. It’s vital to keep a clear head and get good advice.
There are three steps to buying a property in Italy: the offer, the preliminary contract (compromesso) and the closing/completion (rogito).
Here we explain the steps and legal requirements involved in the process of making an offer on a property in Italy.
Before you make an offer
In Italy, you make an offer via your estate agent. It is customary to make an offer below the asking price, but how do you know what is fair when everyone, including the agent, will profit from the sale?
Here are some tips to ensure you get a fair price.
Research the market
Doing research into local asking prices for similar properties is easy with the help of property portals. While there is no central register of sold property prices, such as the MLS in the USA or Rightmove in the UK, you can track square-metre prices via the Osservatorio del Mercato Immobiliare database and the website of the Agenzia delle Entrate (Italian Revenue Agency). With some data behind you, it is easier to make a judgement on how much to offer below the asking price, if at all. You can also see whether you are in buyer’s or seller’s market, from many sources of public data, such as here.
Consider both sides of the deal
When planning your offer, bear in mind that what overseas buyers dream of and Italian buyers prefer can be very different, especially when it comes to “old and beautiful” property. There is a reason why properties are being sold for one euro in remote parts of Italy – Italians don’t want them! If the property is neglected, that’s a clue. If possible, find out how long it has been on the market, how long they have owned it, what it is currently being used for and why they are selling it.
Get a professional opinion
If using a local lawyer, they may be willing to give an indication on whether you are getting a fair price. Getting a surveyor involved early may help too, and will be a more impartial opinion than the seller’s estate agent.
Use a buyer’s agent
Many buyers find that using a specialist buyer’s agent to find a property in Italy, ascertain from their own knowledge if it is fair price, and negotiate on the buyer’s behalf, is extremely useful. It can save a lot of time and effort and even save money in the long run.
It’s vital to find a buyer’s agent you like and trust, so speak to a property buying consultant at Your Overseas Home.
Making an offer
In Italy, you will make an offer via your estate agent. This will be turned into a reservation offer, a letter of intent to purchase that is irrevocable (proposta irrevocabile d’acquisto). The seller will then take the property off the market.
However, you may attach conditions to the offer, known as a suspensive clause. For example, although not obligatory in Italy, many international buyers choose to get a property survey. If you’re financing the purchase with a mortgage, being accepted for a mortgage could be a suspensive clause. To enact any suspensive clauses, speak to your property lawyer.
Next steps
If the offer is accepted, the buyer and seller will normally go on to sign a preliminary contract known as the compromesso.
This is a legally binding document that outlines the details of the property for sale and the agreed price.
The final sale contract, the Atto di Vendita, is signed in the presence of a notary. Once signed, the property is officially yours and you will receive the keys.
Speak to a currency specialist
It is wise to protect your money with a currency specialist as soon as you commit to buying an Italian property. Otherwise, you are making a legal agreement to pay an amount in euros on a set date. However, before then the exchange rate will change and could easily move against you, requiring a potentially much larger payment in your own currency.
Smart Currency Exchange, being an international property specialist, can remove that risk via a forward contract that fixes the exchange rate for the period of the sale.